answer please

Question one(40 marks) i)Joumalizing and posting closing entries is a required step in the accounting cycle. Discuss what closing entries are and why it is necessary to close the books at the end of an accounting period. If closing entries were not made, how would the preparation of financial statements be affected?(6 marks) ii) Presented below is the Trial Balance and Adjusted Trial Balance for Toyota Zambia Company on December 31. TOYOTA Zambia COMPANY Trial Balance(in 000) December 31 Before Adjustment Dr. Cr K 2,000 2,800 2.100 1,200 18,000 After Adjustment Dr Cr. K2,000 3,900 1,300 700 18,000 K 1,300 2.700 10,000 Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated depreciation- Equipment Accounts Payable Notes Payable Interest Payable Salaries and Wages Payable Unearned Service Revenue Share Capital-Ordinary Dividends Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense Supplies Expense Depreciation Expense Interest Expense Totals K 1.500 3.200 10,000 120 600 4.060 7.200 4.460 7,200 3,200 3,200 8,000 9,500 2,060 1,800 500 2,660 2,300 1,300 500 200 120 K36,180 K33,660 K33 660 K36,180 Required a)Prepare the journal entries that were made by the accountants of Toyota to changes in the balances from the trial balance before adjustments to the trial balance after adjustments (16 marks) b) Using the trial balance after adjustments above, prepare the income statement and the statement of financial position for Toyota (10 marks) c) Using the trial balance after adjustments above, prepare the closing entries (5 marks) d) Prepare the post closing trial balance.(5 marks) FA1-18/12/1 Page 2