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Indigo Production stared operaions on I April 2022. The hasiness account balances as at 30 September 2022 are as follow' Inspection of the accownting reconds
Indigo Production stared operaions on I April 2022. The hasiness account balances as at 30 September 2022 are as follow' Inspection of the accownting reconds show that the following matters fiave not been considered: 1) Prepaid Insurance invone a one-year policy commencing on 1 May 2022. 2) Cash received toralling RM6siv trom a castonler for settienent of anownt ontstanding was debited to the cash accosat and credited to the made payable accoun as R.MS60. 3) On io Sepiegnher 2022 the wilue of supylies on hand is R.M2, 3000 . 4) Notes payable with 7.5% interest was issacd on I June 2022 and will watare an 30 Novmber 2022. The interest should be puid together wirh the principal amosnt iepoit materily. 5) As of 30 September 2022 , madigo Prodaction has perfonmed 60 of of services reiated to wnearned service relenue. EPPD 1033 6) Rental for the monh of Seprember 2022 sotaling RA2, ado has yet to be paid by the tenaut and has not been recorded. Rid240 8) Annatal depreciation for equipment is RIS 000 . Required: a) For each itens (1) till (8) above, identify whether it inotves adjusment or error. For nuth adjusidens ar erwor identified, shate ber ryne of adjusiment on stror intoluel. (4 manks) b) Prepare: i) the aljusiong nolries ard the correcting eniries ropuirni un 30 Sepiomber 2022. ii) the Adiusted Trail Baliance on 30 September 2022. (9) manssi (il) 16morms) iv) the Statentent of Financial Position as at 30 September 2022. (3manks) v) the closing mitries an 30 Sephember 2022. (+manks)
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