Alba Ltd hires out equipment and furniture for parties. The unadjusted trial balance of the business appears as shown below.



Unadjusted Trial Balance as at 30 June 2018

Account Debit Credit
Cash at bank

Accounts receivable

GST receivable

Prepaid insurance

Party equipment

Accumulated depreciation –          party equipment


Accumulated depreciation – furniture

Accounts payable

GST payable

E. Johns, Capital

E. Johns, Drawings

Hire fees revenue

Salaries expense

Rent expense

Maintenance expense

Electricity expense

$ 5 200

2  400

3  300

1 200

31 400


47 300





18 310


26 500

5 700

3 100

 1 400












17 600


23 000

6 800

5 000

18 710


74 700




$ 145 810 $ 145 810


Additional information


  1. Expired insurance amounts to $850.
  2. June electricity costs of $300 have not been paid or recorded. No tax invoice has been received.
  3. Depreciation on the party equipment is $7850, and depreciation on the furniture is $9420.
  4. Hire fees of $1150 (plus GST of $115) were received in advance and were not considered to be revenue at balance date.
  5. The Rent Expense account contains $1320 paid for July 2018 rent.
  6. A hire fee of $264 received in cash (including $24 GST) was recorded by debiting Accounts Receivable.
  7. Salaries earned amounting to $810 will be paid in July and have not been recorded.


A. Set up T accounts for the accounts listed in the trial balance.

  1. Enter the account balances from the trial balance to the T accounts.
  2. Post the adjusting information directly to the T accounts.

B. Prepare an adjusted trial balance.

C. Prepare an income statement and a statement of changes in equity for the year ended 30 June 2018.

D. Prepare a balance sheet as at 30 June 2018.

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