ABC Trading LTD Unadjusted Trial Balance 31 December 2021 Account Debit (USD) Credit (USD) Cash 35.000 Accounts Receivable 45.000 Allowance for Doubtful Accounts 2.000 Inventory Share Investments Equipment Building Land Accounts Payable Share Capital Retained Earnings Sales Sales Returns and Allowances Sales Discounts Cost of Goods Sold Salaries & Wages Expense Rent Expense Total 50.000 30.000 180.000 18.000 25.000 150.000 160.000 135.000 10.000 5.000 60.000 25.000 10.000 470.000 470.000 Transactions 1. ABC purchased inventory on account from supplier D with $40,000 value, terms 2/10, 1/30. $1,000 freight cost is paid by the seller (D) as cash. 2. ABC sold all existing inventory on account with $80,000 value, terms 1/10, 1/30. Pricing policy of the company is cost plus 100% markup. $1,000 freight cost is paid by the seller (ABC) as cash. 3. Customer in transaction 2) returned 25% of goods to ABC. Assume that the goods were not defective 4. After applying aging schedule method for ABC, total estimated bad debt is calculated as $8,000. 5. The equipment has no salvage value and useful life is 8 years. The building has a useful life of 30 years with no salvage valu Both the equipment and building were purchased on January 1, 2021. There has been no adjustment to account for depreciation for the current year of 2021. ABC applies declining-balance method for the equipment and straight-line meth for the building. 6. ABC got long term corporate loan of $200,000, 8%, with 5-year maturity on December 31, 2021 with equal annual payme 7. ABC had acquired 40% of the ordinary shares of XYZ ple for $50,000 on January 1, 2021 (reported as Share Investments unadjusted trial balance). For 2021, XYZ reports net income of $10,000 and paid dividends of $4.000. 8. ABC paid $1,500 1-year insurance premium on December 31, 2021. Required a) Open ledger accounts and journalize the transactions. (56%) b) Prepare adjusted trial balance and multiple-step income statement for the period ended December 31, 2021. () c) Prepare a classified statement of financial position as of December 31, 2021. (7%)