I think pages 2-3 and 4 are not related to each other

Question 1 ( 70 tharks) The following trial balance was extracted from the books of GorCha Limited as at 30 Jine 2022; Trial Balance as at 30 June 2022 The following ndditional information was available: (1) The cost of elosing inventory as at 30 June 2022 was valued at $65,000 while the net realizable value was valued at $56,700. (2) Bank loan interest of $10,000 was to be acerved as at 30 June 20222 . (3) Insurance prepaid amounted to $21,700 as at 30 June 2022 . (4) Advertising expenses unpaid amounted to $5,300 as at 30 Jurne 2022 . (5) Depreciation to be provided for non-current assets was as follows: Equipment 10% per annum using straight-line method Machines 25% per annum using reducing balance method (6) Allowance for doubtful dehts at 30 June 2022 was to be incteased to 510,000 . (7) The board of directors has decided to transfer $18,000 out of the cunent year's profit to general reserve. (8) The estimated income tax expense for the year was $25,000. Required: Prepare for GotCha Limited, (a) adjusting journal entries at 30 June 2022 to record items (3), (4), (5), and (6) with narratives. (14 marks) (b) a statement of profit or loss and other comprehensive income for the year ended 30 June 2022 (Note: Expenses are to be classified by function). (26 marks) (c) a statement of financial position as at 30 June 2022 . (30 marks) (Total 70 marks) Question 2 ( 30 marks) The bank statement of GoGo Company for the month ended 31 March 2022 was received. However, the balance per the statement and the balance per the cash book failed to agree. The cash book showed a debit balance of $61,200. The following differences were found upon investigation: (1) A cheque for $26,790 received from a customer was returned by the bank as dishonoured, but no entries concerning that event had been made in the cash book. (2) A customer paid amount of $1,750 directly into our bank account by standing order on 30 March 2022 . No entry had been made in the cash book. (3) A standing order of charitable donation $2,300 had not been entered in the cash book. (4) The bank had wrongly credited the company account with a receipt of $3,600 which should have been credited to another bank customer. (5) A cheque payment of $2,500 had been wrongly entered in the cash book as a receipt. (6) A deposit of $17,000 made into the bank on 31 March 2022 had not yet appeared on the bank statement. (7) Bank charges of $200 were omitted from the cash book. (8) Cheques issued amounting to $4,800 were still outstanding and did not go through the bank until April 2022. Required: (a) Explain why GoGo Company needs to prepare bank reconciliation statement at the end of each month. (b) Update the cash book of GoGo Company, showing the necessary adjustments and the adjusted balance as at 31 March 2022 . (17 marks) (c) Prepare a bank reconciliation statement of GoGo Company as at 31 March 2022. (8 marks) (Total 30 marks) Question 1 ( 70 tharks) The following trial balance was extracted from the books of GorCha Limited as at 30 Jine 2022; Trial Balance as at 30 June 2022 The following ndditional information was available: (1) The cost of elosing inventory as at 30 June 2022 was valued at $65,000 while the net realizable value was valued at $56,700. (2) Bank loan interest of $10,000 was to be acerved as at 30 June 20222 . (3) Insurance prepaid amounted to $21,700 as at 30 June 2022 . (4) Advertising expenses unpaid amounted to $5,300 as at 30 Jurne 2022 . (5) Depreciation to be provided for non-current assets was as follows: Equipment 10% per annum using straight-line method Machines 25% per annum using reducing balance method (6) Allowance for doubtful dehts at 30 June 2022 was to be incteased to 510,000 . (7) The board of directors has decided to transfer $18,000 out of the cunent year's profit to general reserve. (8) The estimated income tax expense for the year was $25,000. Required: Prepare for GotCha Limited, (a) adjusting journal entries at 30 June 2022 to record items (3), (4), (5), and (6) with narratives. (14 marks) (b) a statement of profit or loss and other comprehensive income for the year ended 30 June 2022 (Note: Expenses are to be classified by function). (26 marks) (c) a statement of financial position as at 30 June 2022 . (30 marks) (Total 70 marks) Question 2 ( 30 marks) The bank statement of GoGo Company for the month ended 31 March 2022 was received. However, the balance per the statement and the balance per the cash book failed to agree. The cash book showed a debit balance of $61,200. The following differences were found upon investigation: (1) A cheque for $26,790 received from a customer was returned by the bank as dishonoured, but no entries concerning that event had been made in the cash book. (2) A customer paid amount of $1,750 directly into our bank account by standing order on 30 March 2022 . No entry had been made in the cash book. (3) A standing order of charitable donation $2,300 had not been entered in the cash book. (4) The bank had wrongly credited the company account with a receipt of $3,600 which should have been credited to another bank customer. (5) A cheque payment of $2,500 had been wrongly entered in the cash book as a receipt. (6) A deposit of $17,000 made into the bank on 31 March 2022 had not yet appeared on the bank statement. (7) Bank charges of $200 were omitted from the cash book. (8) Cheques issued amounting to $4,800 were still outstanding and did not go through the bank until April 2022. Required: (a) Explain why GoGo Company needs to prepare bank reconciliation statement at the end of each month. (b) Update the cash book of GoGo Company, showing the necessary adjustments and the adjusted balance as at 31 March 2022 . (17 marks) (c) Prepare a bank reconciliation statement of GoGo Company as at 31 March 2022. (8 marks) (Total 30 marks)