B (28%)-Compulsory Long Questions Answer ALL questions in this section in the answer book provided. Explanations of the journal entries are not required. Question Bl Mirror Company is engaged in purchase and sales of stylish 3D masks. The company adjusts its accounts monthly, closes its accounts annually on 31 December and adopts a perpetual inventory system. The unadjusted trial balance of Mirror Company at 31 December 2021 was shown as follows: Mirror Company Unadjusted Trial Balance 31 December 2021 Debit S Credit S Cash Supplies Unexpired insurance 9,000 750 6,000 Accounts receivables 44,760 Inventory 42,015 Equipment Accumulated depreciation - Equipment 147,000 57,750 6% Notes payable (due on 31 March 2023) 20,000 Accounts payable 14,475 Unearned revenue 10,000 Income taxes payable 18,750 Share capital 52,500 Retained earnings 21,600 Sales revenue 342,000 Sales returns 4,500 Cost of goods sold 170,000 Salaries expense 55,150 Depreciation expense-Equipment 19,250 Insurance expense 10,700 Selling expense 9,000 Supplies expense 200 Income taxes expense 18,750 537,075 537,075 Information on adjusting items: (1) Supplies on hand on 31 December amounted to $200. (2) Estimated income taxes expense for the year amounted to $22,000, which will be paid in March 2022. Page 6 of 13 College of Professional and Continuing Education (CPCE) an affo Questioned BI (continued) (3) On 28 December 2021, the Company delivered masks previously ordered by customers who had paid the invoice amount of $2,400 in November 2021. The gross profit rate was 35%. No entries were made for the delivery. (4) The Company signed a 2-year 6% notes payable of $20,000 on 1 April 2021. The principal and the total accrued interests will be paid on maturity date. No adjusting entries were made for the accrued interest in 2021. (5) The Company purchased and paid for a one-year insurance contract on 1 August 2021 with effective on the same date. (6) On 31 December 2021, the Company took a physical count and the inventory on hand was $39,000. Required: (a) Prepare the necessary journal entries so as to bring the financial records of Mirror Company up- to-date as of 31 December 2021. No explanation is required. (b) Calculate the amount of Net Sales for the year. (c) Calculate the amount of Gross Profit for the year. (14 marks) (2 marks) (2 marks)