1. The following are the ledger balances obtained from the books of M. Moss a trader on March 31, 20xx. M. Moss capital Supplies Buildings Equipment ? 20 000 100 000 40 000 Prepaid Rent Insurance expenses Wages expenses Investments Account receivable Account payable M.Moss withdrawal Cash Sales Revenue Purchases of merchandise Inventory 18 000 3.600 10 000 3.000 12 000 6.800 5 000 9 600 150 000 80 000 9 000 Merchandise Inventory at cost (March 1) 10 000 Required: Salaries expenses 1. 2. 123 (a) Draw up a trial balance as on 31st March 20xx. (b) Prepare an income statement, statement of owner's equity and a balance sheet for the month ended 31 March, 20xx assuming the following adjustments need to be accounted for: The supplies on hand at the end of the month was $6,000 Salaries included $2,000 that was paid in advance for the following month. Wages were paid for a fortnight only ending on March 15th. The balance is payable on April 2nd. Rent was paid on March 1st. for six months in advance including the current month. 4. 5. 6. 6% Interest on investments for the month was earned at the end of March. All long term assets were to be depreciated by 5% per annum. 7. Ending merchandise inventory amounted to $14,000 at cost with a market value of $20,000