Balance Sheet as at 31 December 2022 S Divya bhalotia...docx Assets Cash 347,000 Inventory 105,000 Accounts Receivable 100,000 Prepaid Insurance 5,000 Supplies 19,000 Total current assets 576,000 Equipment 180,000 Accumulated depreciation -79,500 Total Assets 676,500 Liabilities Accounts payable Dividends payable Wages payable Total current liabilities Loan Total Liabilities 129,500 9,000 10,500 149,000 200,000 349,000 Shareholders' Equity Share capital 170,500 Retained profits 157,000 Total Shareholders' Equity 327,500 (SE) Total liabilities and SE 676,500 You are given the following extract for the income statement of INSPIRE Ltd for the month ending 31 December 2022. Sales Cost of goods sold Depreciation expense S 260.000 130,000 5,000 The following events occurred for INSPIRE Ltd during the month of January 2023: a) Sales fell 10% in January 2023 compared to December 2022. 55% of total monthly saies were credit sales. (3 marks) b) On January 1st 2023, the company borrowed $50,000 from the bank. The company pays 9% interest on total loans outstanding (i.e., all loans outstanding not just the new loan). An interest payment of $1500 was made during the month. All loans are 'interest' only with the capital repaid at the maturity date (5 marks) c) The total cost of inventory sold in this period decreased by 10% : f) (3 marks) Paid suppliers $72,000 for inventory. $28,000 relates to inventory purchased in a previous acc Time left 1:00:10 g) Paid wages of $65,000 during the month. $10,000 in wages payable remained outstanding to employees at the end of January 2023. (3 marks) h) Paid an insurance policy worth $60,000 covering 1 February 2023 to 31 January 2024. Insurance is prepaid each year in January. (3 marks) i) The company rents excess office space to another business. On Jan 1st, the tenant pays $3,000 for one months rent (Jan 1-31, 2023). (2 marks) Paid $42,000 rent for the six month period from 1 January 2023 to 30 June 2023. (3 marks) You are required to prepare journal entries/adjusting journal entries for each of the above transactions in the spaces provided below. a) Sales fell 10% in January 2023 compared to December 2022. 55% of total monthly sales were credit sales. (3 marks) (Note: this Journal Entry will NOT include Cost of Sales which will appear in another entry) Example format for your answer: Dr. Account Name xxXX Cr. Account Name xxXX