Question: The accounting manager at Antwerp's TranquilStay Hotel has prepared the following profit and loss statement that pertains to the most recent accounting year
![640_Tranquilstay.png](https://secure.tutorsglobe.com/CMSImages/640_Tranquilstay.png)
The accounting manager is uncertain how to handle year-end adjusting entries and has sought your advice. Following a review of the business, you determine the following:
1. A A2,500 advance payment received in connection with a conference to be held in late July has been included in the sales revenue figure.
2 Employees have not been paid A4,000 in wages and salaries earned in the last 4 days of June.
3 Depreciation of A10,000 on a new car purchased this year has not been recorded.
4 The hotel rents a small adjoining property which it uses for patrons' car parking whenever the hotel's underground car park is full. The last rental fee paid was A900. This payment was made on 1 May and covered a three-month period. The account manager recorded this as prepaid rent and no entry has been made to adjust this account at the year-end.
5 The hotel holds an investment that earns A1,000 interest per month. June's interest, which will be received in July has not been recorded in the accounts.
6 Annual property insurance of A24,000 is paid semi-annually in advance. The last A12,000 payment, which was made on 1 April 20X1 was debited to prepaid insurance. No adjusting entry to the prepaid insurance account has been made.