Handassa Engineering Company is a consulting company. It started the period with 37,000 cash, 500 in supplies, share capital of 19,500, and retained earnings of 18,000( these are the opening balances of these accounts and must appear on your T-Accounts). Handassa Engineering Company engaged in the following transactions in 2019:

Transactions during 2019:

1. 1) On 1 January, purchased office equipment for 18,000.

2. 2) On 1 March, paid 8,100 for an insurance policy that provides a 12 month coverage beginning

   immediately.

3. 3) On 25 March, purchased 2,700 of supplies for cash.

4. 4) On 27 March provided 58,500 of services for cash.

5. 5) On 31 March paid 13,500 for salaries expense.

6. 6) On 1 April, received 18,000 cash in advance for services that will be performed over the next 12

   months.

Information for Adjusting Entries:

Dec.31 The depreciation of the office equipment is equal to 3,750. Dec.31 Recorded the insurance expense for the year (see 2 above). Dec. 31 An inventory of supplies showed 375 of supplies on hand as of 31 December 2019.

Dec.31 Adjusted records to recognise the services provided in the contract of April 1. Dec.31 The company estimates that the accrued utilities expenses amount to 750.

Required:

1. a) Record the above events and adjusting entries for 2019 in general journal form. (16 marks)

2. b) Post the transactions to T-accounts and calculate the account balances (13 marks).

3. c) Prepare a trial balance for the year ended 31 December 2019 2019. (9 marks)

4. d) Prepare an Income statement (P&L account) for the year ended 31 December 2019. (8 marks)

5. e) Prepare a statement in changes in stockholder s equity.(4 marks)

6. f) Prepare a Statement of financial position as at 31 December 2019(SOFP). (10 marks)