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(a) Identify and explain two errors that will allow a trial balance to balance. (6 marks) (b) The following is the unadjusted trial balance extracted

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(a) Identify and explain two errors that will allow a trial balance to balance. (6 marks) (b) The following is the unadjusted trial balance extracted from the books of Mali Estate Agents as at 31 December 2020. The entity is involved in the provision of property management services and prepares its annual financial statements per the calendar year. Cr Dr 725.000 600,000 400.000 360.000 225.000 180,000 Account Name Cash Capital Land Office equipment Accumulated depreciation: Office equipment Office supplies Prepaid rent Notes payable Accounts payable Drawings Service revenue Accounts receivable Advertising expense Interest expense on note payable Depreciation expense: Office equipment Office supplies expense Rent expense Salary expense 960,000 21,600 561.800 49,400 13.000 150.000 41.000 2.143.400 2.143.400 Additional information: 0) Depreciation expense on office equipment purchased on 1 July 2020 had not yet been booked. Annual depreciation expense amounts to Ksh 36,000 00 Office supplies as at 31 December amounted to Ksh 120.000 culty interest expense on the note payable amounting to ksh 48.000 had been omitted (iv) The prepaid rent amount of Ksh 180,000 was paid on 1" of December 2021 for the period December 2020 to February 2021 (v) of the accounts receivable, Ksh 25.000 was settled on the very last day of the year but had been missed out by Mali's accountant Home d. This course 561.800 49.400 13,000 Dashboard Events My Courses Service revenue Accounts receivable Advertising expense Interest expense on note payable Depreciation expense: Office equipment Office supplies expense Rent expense Salary expense 150.000 41.000 2.143.400 2.143,400 Additional information: Depreciation expense on office equipment purchased on 15 July 2020 had not yet been booked. Annual depreciation expense amounts to Ksh 36.000 (m) Office supplies as at 31 December amounted to Ksh 120.000 ill) Interest expense on the note payable amounting to ksh 48,000 had been omitted (vThe prepaid rent amount of Ksh 180.000 was paid on 1" of December 2021 for the period December 2020 to February 2021. w of the accounts receivable, Ksh 25.000 was settled on the very last day of the year but had been missed out by Mall's accountant. (vo On 25 December 2020. Bwana Mal withdrew Ksh 150.000 from the business to pay for his family's holiday trip to Mombasa. This transaction had not been recorded Required: Prepare the adjusting entries required at 31 December, 2020 and extract the adjusted trial (8 marks) balance 1) Prepare the Statement of income for Mall Estate Agents for the period ended 31 December, 2020 (8 marks) cia) Prepare the Statement of changes in equity for Mall Estate Agents for the period ended 31" December, 2020 15 marks) o Prepare the Statement of financial position for Mall Estate Agent as at 31 December, 2020 (8 marks

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