Analyse the transactions and present the journal entries and adjusting journal entries for ABC Pte Ltd for the year 20X9.

The following transactions and additional information were given for the year 20X9:

(1)On February 23, 20X9 the company purchased $730,000 worth of inventory. The company settled all outstanding payment with the supplier and paid cash for the new purchase. For the prompt payment, the company was given 5% discount on the purchase.

(2)The bank loan carries an annual interest of 4% payable every March 31.

(3)The existing office rental expired on March 31 and the company paid $50,400 on April 1 to renew the rent for another year. Workings must be shown for the adjusting entries.

(4)The company adopted the following depreciation policy for its non-financial assets:

The Statement of Financial Position for ABC Pte Ltd as at December 31, 20KB was given below: ABC Pte Ltd Statement of Financial Position As at 31 Dec 20KB ASSETS Current assets 3 3 Cash 38,600 Accounts receivable 152,000 Allowance for impairment of AR (6,230) 150,?20 Inventory 43,560 Prepaid rent 12,000 Noncurrent assets Investment in GL Ltd. 50,000 Packaging machine 200,000 Less Accumulated depreciation machine (33,000) 162,000 Furniture & Fixture 300,000 Less Accumulated depreciation F35]? (30,000) 230,000 Franchise 60,000 Less Accumulated amortization Franchise (3,000) 52,000 Total assets 1,45 8,380 LIABILITIES Current liabilities Unearned revenue 61,320 Accounts payable 14,100 Utilities payable 2,300 Interest payable 6,000 Noncurrent liabilities; Bank Loan 200,000 Total liabilities 233,?20 SHAREHOLDERS'S EQUITY Share capital 1,100,000 Retained earning 70,160 Total liabilities and shareholders' equity i 453 380 A Usell life Residual value Fackaging machine 10 $10,000 Furniture & Fixture 10 Nil Franchise 15 Nil Expected default rate 61"\" \"31'3\"\"; amount {3) 0 60 days past due 2.00% 13?,000 More than 60 days past due 10.00% 43,000 180,000