Credits LALA Company had the following adjusted trial balance. LALA COMPANY Adjusted Trial Balance For the Month Ended June 30, 2018 Account Titles Debits Cash $ 3,200 Accounts Receivable 3,900 Supplies 500 Accounts Payable Unearned Service Revenue Share Capital-Ordinary Retained Earnings Dividends 300 Service Revenue Salaries and Wages Expense 1,800 Miscellaneous Expense (300 +STT) Supplies Expense 2,300 Salaries and Wages Payable $12,300 +STT $ 1,800 (200 + STT) 4,000 800 5,100 400 $12,300 +STT Required: STT=19 1. Prepare Income Statement, Statement of Retained Earnings (0.6 marks). 2. Prepare the Statement of Financial Position for December 20xx. (0.3 marks) 3. Prepare closing entries (0.4 marks). 4. Prepare post-closing trial balance (0.3 marks). 5. Why adjusting the accounts is needed in accounting? What are consequences of inaccurate adjusting entries? Provide one example for this. [Word count: 200 words] (0.4 marks) Question 3 (1.5 marks) 1. Binh nh's inventory, purchases, and sales for March and April follow. The company closes its books at the end of each month. It uses the perpetual inventory system. March 1 Beginning Inventory 160 Units at $49 10 Purchase 100 Units at $52 31 Ending Inventory (70 +STT) Units April 4 Purchase 120 Units at $53 15 Purchase 50 Units at $54 23 Sale 200 Units 25 Purchase 100 Units $55 30 Ending inventory 222 Required: a. Compute the cost of the ending inventory on March 31 and April 30 using the average-cost method. In addition, determine cost of goods sold for March and April. (Round unit costs to the nearest cent.) (0.5 marks) b. Compute the cost of the ending inventory on March 31 and April 30 using the FIFO method. Determine cost of goods sold for March and April. (0.5 marks). c. What are relationships between the cost of goods sold and net income as well as between the cost of goods sold and the ending inventory? (0.5 marks)