Assume the following information for company SDA on 31" December 2018, before the preparation of the adjusted trial-balance: Machinery Wages payable Accumulated depreciation: machinery Bank deposits Uneamed revenue Prepaid insurance Accounts receivable Advances from customers Revenue Inventory Long-term loans Accounts payable Retained earnings Rent expense Share Capital () 38,000 1,300 6,000 12,000 2.100 3,600 6,500 1,800 13,000 3,000 16,000 4,500 13,000 9,600 15,000 Required: A. (20%) 1. (14%) Prepare adjusting entries by taking into consideration the following information: a. The accrued interest on long-term loans for the fiscal year 2018 is calculated at an interest rate of 6% on the balance of the loan at this date. b. During December, unearned revenues of 1,500 were eamed. c. Depreciation charges on machinery for fiscal year 2018 amount to 3,160. d. The accrued interest on deposits in December is 170. e. On 10h October 2018, SDA prepaid 4,800 for six months' rent and debited the account Rent expense for the total amount of 4.800. f. An amount of 600 was recognized as revenue of fiscal year 2018. This amount corresponds to services that will be provided in the next fiscal year 2019 g. Prepaid insurance expired at 31 December 2018. 2. (3%) Record the closing journal entries for the determination of the firm's net profit or loss assuming that the firm's tax rate is 20% and the annual result of its operations (profit or loss) is carried forward. (3 marks) 2. (3%) Prepare the post-closing trial balance. Provide the required calculations. Assume that the fiscal year end date of SDA is on 31" December 2018 B. (596) Explain the concept of the matching principle. Discuss how depreciation can be justified as an expense under the matching principle. (Word Limit 500 words)