Adjusted Trial Balance as at December 31* 2021 Particulars Debit Credit Cash 115,000 Accounts Receivable 385,300 Note Receivables 36,000 Building 470,000 26,000 Accumulated Amortization Building Accounts Payable Note Payable 70,000 20,000 Unearned Rent Recetables 3,200 Share Capital Retained Earning 620,000 105,000 Sales 935,000 Cost of Goods Sold 590,000 Salary Expenses 225,000 Other Expenses 16,500 Accrued Interest 600 Interest Receivables 600 Deprecation Expense 6,000 Rent Received 1,600 Dividend payable 60,000 Tax Expense 4,000 Tax Payable 4.000 Salary Payable 2.500 Total 3.848 400 1848.400 Adjusted Entries Particulars Journal Entry Debit Credit Salary Expense A/C Dr. 2,500 TO Salary Payable A/C 2,500 (Being Salary payable recorded) Accrued Interest Act Dr. 600 To interest Expense A/C 600 (Being interest recognized (36,000 x 10% X 2/12) Unearned Rent Receivables Alc Dr. 1,600 To Rent Receivables A/C 1,600 (Being rent income recognized) Dr. 6,000 Accumulated Depreciation A/C To building A/C 6,000 (Being depreciation charged) Retained Earning A/C Dr. 60,000 To Dividend Payable 60,000 (Being dividend payable recorded) Tax Expense A/C Dr. 4,000 TO Tax Payable 4,000 (Being Tax Expense Recognized) Required: 1- Prepare all the necessary journal entries at the end of the year, excluding closing entries. Omit narratives. (9 marks) To help you do IS and BS, create T accpynts on your scrap paper. No need to submit T accounts. 2- Prepare in good form and proper style / multi-step income statement for the year ended December 31, 2021. (8 marks) 3. Prepare in good form and proper style a classified balance sheet as at December 31, 2021. (13 Marks) 4- Calculate the following three ratios and explain what they mean: a. Net profit margin ratio. b. Debt-to-Equity ratio. c. Accounts receivable turnover ratio. Assume that accounts receivable balance at December 31, 2005 was $360,000. (6 Marks) Adjusted Trial Balance as at December 31* 2021 Particulars Debit Credit Cash 115,000 Accounts Receivable 385,300 Note Receivables 36,000 Building 470,000 26,000 Accumulated Amortization Building Accounts Payable Note Payable 70,000 20,000 Unearned Rent Recetables 3,200 Share Capital Retained Earning 620,000 105,000 Sales 935,000 Cost of Goods Sold 590,000 Salary Expenses 225,000 Other Expenses 16,500 Accrued Interest 600 Interest Receivables 600 Deprecation Expense 6,000 Rent Received 1,600 Dividend payable 60,000 Tax Expense 4,000 Tax Payable 4.000 Salary Payable 2.500 Total 3.848 400 1848.400 Adjusted Entries Particulars Journal Entry Debit Credit Salary Expense A/C Dr. 2,500 TO Salary Payable A/C 2,500 (Being Salary payable recorded) Accrued Interest Act Dr. 600 To interest Expense A/C 600 (Being interest recognized (36,000 x 10% X 2/12) Unearned Rent Receivables Alc Dr. 1,600 To Rent Receivables A/C 1,600 (Being rent income recognized) Dr. 6,000 Accumulated Depreciation A/C To building A/C 6,000 (Being depreciation charged) Retained Earning A/C Dr. 60,000 To Dividend Payable 60,000 (Being dividend payable recorded) Tax Expense A/C Dr. 4,000 TO Tax Payable 4,000 (Being Tax Expense Recognized) Required: 1- Prepare all the necessary journal entries at the end of the year, excluding closing entries. Omit narratives. (9 marks) To help you do IS and BS, create T accpynts on your scrap paper. No need to submit T accounts. 2- Prepare in good form and proper style / multi-step income statement for the year ended December 31, 2021. (8 marks) 3. Prepare in good form and proper style a classified balance sheet as at December 31, 2021. (13 Marks) 4- Calculate the following three ratios and explain what they mean: a. Net profit margin ratio. b. Debt-to-Equity ratio. c. Accounts receivable turnover ratio. Assume that accounts receivable balance at December 31, 2005 was $360,000. (6 Marks)