Shawn Ltd prepared an Income Statement for the financial year ending 30 June 2021 but...
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Accounting
Shawn Ltd prepared an Income Statement for the financial year ending 30 June 2021 but failed to take into account three adjusting entries.
Relevant information for the three adjusting entries were:
Shawn Ltd purchased equipment on 1 September 2020. Annual depreciation charge for the equipment is $15,000. No depreciation entry has yet been recorded the year ended 30 June 2021.
Wages amounting to $11,000 for the last two days of June were not paid and not recorded. The wages amount will be paid to employees in the first week of July 2021.
Rent of $36,000 was paid for six months in advance on 1 April 2021. The entire amount was recorded as Prepaid Rent when paid. No adjusting entry has yet been recorded for the financial year ending 30 June 2021.
REQUIRED:
Prepare the required end-of-period adjustment entries for Shawn Ltd (Ignore GST; Narrations are not required).
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