ARC Pte Ltd is a company incorporated in Singapore and adopts the Singapore Financial Reporting Standards (FRSs). It is in the retail business of selling expensive wooden furniture. Unless otherwise indicated, journal entries are usually made as and when transactions occur. 31 December is the company's year-end.

The companys trial balance as at 1 December 20X3 are as follows:

ARC Pte LtdTrial Balance 1 December 20X3
Account Title	Debit	Credit
	$	$
Cash	98,200
Accounts receivable	93,100
Inventory	37,500
Prepaid rent	160,000
Vehicles	400,000
Accumulated depreciation - vehicles		140,000
Investment in XYZ Ltd	150,000
Bonds payable		200,000
Income tax payable		12,000
Unearned revenue		10,500
Share capital		300,000
Retained earnings		121,000
Revenue		1,640,000
Salaries expense	407,300
Insurance expense	900
Depreciation expense	40,000
Interest expense	0
Administrative and marketing expense	314,500
Income tax expense	12,000
Cost of Goods Sold	710,000
	2,423,500	2,423,500

Additional information given as follows to be read in conjunction with the trial balance printed on 1 December20X3 provided above

(1) The company operates from a rented premise. The company paid

$192,000 to its landlord on 1 September 20X2 for a two-year lease for the premise, with the lease commencing on the same date.

(2) On 1 April 20X3, the company paid $2,400 to purchase a one-year fire insurance for the rented premise, commencing on the same date. The accounts clerk forgot to enter this transaction.

(3) On 1 July 20X3, the company issued $200,000 of 4%, 5-year bonds at par. Interest payment occurs twice yearly on 1 July and 1 January, with the first interest payment to be made on 1 January 20X4.

(4) On 23 December 20X3, a cash amount of $23,000 was received from a customer on an outstandingaccount.

(5) During the Annual General Meeting held on 2 December 20X3, the shareholders approved theproposal by the board of directors for dividends of $60,000 to be paid to shareholders in January20X4.

(6) On 28 December 20X3, the company made a cash purchase of $73,000 of inventory. The companyadopts the perpetual inventory system.

(7) On 29 December 20X3, a customer paid for 20% of an item to be delivered in January 20X4. Theitem was selling at $3,000.

(8) The investment in XYZ Ltd was treated as fair value through profit and loss under FRS 109 FinancialInstruments. The company has no intention to hold the investment for more than 12 months. On 31 December 20X3, the fair value of the investment was $180,000.

Required:

For the following, please show all workings clearly to get full credit.

(a) Analysing the above information, apply and illustrate accrual accounting concepts and prepare all necessaryand adjusting journal entries (journal narratives required) based on the additional data provided in points (1) to (8) above to aid in the preparation of the financial statements for the financial year ending 31 December20X3.

My answer:

Please help me to review my answer and if it is wrong, please provide the correct answer along with the explanations and workings. Thank you.