ABC Hardware Store had the following transactions during the year starting January 1, 2022. At the beginning of 2022, the ledger of ABC showed Cash of 400,000 SR, opening inventory 48,000 SR (1,200 units at 40 SR per unit) and Owners Capital of 446,600 SR.

(ABC Co. uses the FIFO method in inventory valuation).

Part 1

1.1 Journalize all the 2022 transactions of ABC Hardware Store below by preparing the General Journal.

ABC invested 80,000 SR cash in the business.

Purchased a truck from Mitsubishi Motors for 32,000 SR on credit.

Paid in advance 108,000 SR cash on a 3-year insurance policy effective January 1.

Paid 11,200 SR cash for employee salaries.

Paid 1,400 SR cash for the repair expenses for the truck.

Withdraw 12,000 SR cash for personal use.

On April 1, ABC purchased 2,000 units from Blaze Co., a supplier, for 60 SR per unit with a settlement discount of 5% if it paid the price within 10 days from the date of purchase.

On July 15, ABC purchased 2,800 units from Mohammed Co., a supplier, for 68 SR per unit with a settlement discount of 5% if it paid the price within 10 days from the date of purchase.

On August 1, ABC sold 2,400 units to Star Co. at a price of 120 SR per unit with a settlement discount of 4% if the price is received within 10 days from the date of sale. (The company is not expecting the customer to take the advantage of the discount).

On April 6, ABC paid the full amount due to Blaze Co.

On August 15, ABC paid the full amount due to Mohammed Co.,

On October 1, ABC sold 400 units at 112 SR per unit to Noor Co. that paid the price in full at the time of the transaction.

Rent received from let-out of a property was 6,000 SR in the year ended December 31, 2022

Part 2

2.1 Use the information from Part 1.1 to post the transactions of the ABC Hardware Store to the proper T-accounts.

The brought forward (b/f) balances if any for the first four T-accounts are needed to be computed, and the remaining balances will be filled out automatically. Likewise, the Unadjusted Trial Balance Statement, is an accounting report that lists the closing balances of all accounts in the general ledger at a point in time, will be filled out automatically after posting all the transaction to the right t-account. The report is primarily used to ensure that the total of all debits equals the total of all credits. This means that there are no unbalanced journal entries in the accounting system that would make it impossible to generate accurate financial statements.

Part 3

Prepare the necessary adjusting double-entries, which are journal entries recorded at the end of an accounting period to alter the ending balances in various general ledger accounts, for the following transactions at the year-end of December 31, 2022, for the ABC Hardware Store.

The company depreciate the truck at 10% straight line. A full years depreciation is charged in the year of purchase and none in the year of disposal.

The insurance expense is relevant for 3 years.

ABC Co. rents out a property for 400 SR per month.

Part 4

4.1 Update the companys ledger accounts to reflect the adjustments made (in part 3.1.)

The Adjusted Trial Balance Statement will be filled out automatically to reflect the adjusting entries.

4.2 Prepare the Statement of Profit or Loss and Statement of Financial Position of the ABC Hardware Store.the for the year ending 31 December 2022

Please provide the answer in tables