(a)Journal Entries Date Account Ref. Debit Credit (b). "T" Accounts Capital Income Summary 2. Hassan Company reports the following for the month of June. Unit cost June 1 Inventory $7 Total Cost $1,750 $2,600 $4,275 12 Units 250 325 475 130 Purchase $8 $9 23 Purchase 30 Inventory Instructions: a) Compute the cost of the ending inventory and the cost of goods sold under (1)FIFO and (2)LIFO.(2 Mark for Each Method) b) Which costing method gives the higher ending inventory? Why?(1Marks) Solution: (1)FIFO (2) LIFO. (b)............ 3. The trial balance columns of the worksheet for MOON TRAVEL AGENCY are as follows. MOON TRAVEL AGENCY....Worksheet (partial) for the Month Ended January 31, 2018 Adjusted Trial Balance Adjustments Account Title Trial Balance Debit Credit Debit Credit Debit Credit Cash 4,400 Accounts receivable 400 Prepaid Insurance 600 Equipment 4,100 Accumulated depreciation 2400 1200 1 Accounts payable Unearned revenue 1500 5,700 T T L L Capital Drawings Service revenue 4,800 Salaries expenses Interest expenses 300 Supplies 2800 15,600 15,600 Other data: a) Expired insurance for the month is $50.(1.25 marks) b) Depreciation on the equipment for the month is $200. (1.25 marks) c) Supplies used during the month is $1000(1.25 marks) d) $800Unearned revenue still unearned at the end of the month (1.25 mark) Instructions: Complete the worksheet. 4. The adjusted trial balance for MAJAN Company at December 31, 2019 contains the following. Debits Building Account Receivable Prepaid Insurance Cash Equipment Land Insurance expense Depreciation Expense Interest expense Credits 77,000 MAJAN, Capital 9,000 Accumulated Depreciation - Building 2,700 Account Payable 10,840 Note Payable 37,500 Accumulated Depreciation - Equipment 38,000 Interest Payable 540 Golfing Revenue 4,400 1,600 181,580 67,000 26,000 7,400 60,000 11,000 1,600 8,580 181,580 Instruction: (a) Prepare Income Statement (2.5 Marks) (b) Prepare owner equity statement (2.5Marks) Solution: MAJAN Company Income Statement For the month ended December 31,2019 Particulars Amount ($) Amount ($) MAJAN Company Owner Equity Statement For the month ended December 31,2019 Particulars Amount ($) Amount($)