Additional information as at 30 September 2020: Stock on 30 September 2020 was valued at RM70,000.

Supplies on hand at 30 September 2020 total RM540

Invoice representing RM7,500 sales in September has not been recorded.

The insurance policy is for a year ending 30 April 2021.

Machine and lorry were depreciated at 10% of the cost each year.

You are required to: a) Prepare the necessary adjusting entries in the general journal. (10 marks)

b) Prepare the income statement for Jonaz for the year ended 30 September 2020.(12marks)

c) Prepare the balance sheet for Jonaz Trading as at 30 September 2020. (13 marks)

d) Explain depreciation and why the company needs to adjust for depreciation.(5 marks)

2. The following item has been extracted from the ledger of Jonaz Trading for the year ending September 30, 2020, RM 12,100 27,700 55,200 6,200 120,000 36,000 180,000 72,000 40,000 48,500 56,000 Account Name Cash Account receivable Inventory 1 October 2019 Supplies Machine Accumulated Depreciation-Machine Lorry Accumulated Depreciation-Lorry Notes Payable Account payable Loan Owner's Capital Drawings Sales Sales Return and Allowances Purchases Purchase returns and Allowances Salaries and Wages Expense Advertising Expense Utilities Expense Maintenance and Repair Expense Rent Expense Prepaid Insurance 88,000 5,000 758,800 15,800 489,200 16,500 136,000 22,100 14,000 12,100 18,000 2,400