Instruction: Answer all the questions with workings in detail. 1. Ms. Sara is appointed as the accountant of ABC LLC Muscat. She is responsible for all the accounting process of the company. The company deals with manufacturing of plastic products in Oman and distributing across GCC countries. The company has a turn over of 2.3 Million rial last year. You are required to identify the basic accounting activities that Ms. Sara must do to prepare financial statements. (1 Mark) 2. You are a business consultant in Muscat. You help your clients for setting up their business organization according to their requirements. Last week one of your client Mr. Salim requested you to advise him to start a business of manufacturing furniture. Mr. Salim is the contributing whole capital for the company RO 12500 and he would like only recruit some laborer's to work in his factory. As a consultant, what form of organization would you suggest to Mr. Salim Give reason for your answer. (1 mark) 3. Mr. Ahmed purchased a machinery from UK last year by paying RO. 12500. Due to some unforeseen events, the delivery of machines got delayed till last month. By the time the vendor increased the price of machinery from RO 12,500 to RO 15,000 due to high demand. Mr. Ahmed now asked his accountants to record RO 15000 in the books of account as the cost of the machinery. a. Do you think any of the basic accounting principles support Mr. Ahmed's decision to record the RO. 15000 as the cost of machinery? Give reason for your answer (1 mark) b. Suppose Mr. Ahmed purchased the asset by taking a loan, how it is going to affect the asst, liability and equity of the company? Give reason for your answer. (1 Mark) 4. Ms. Maatir started her own beauty salon last year. Her salon is very famous in that area and she managed to make a profit of RO 2500 every week. She uses RO 1000 every week to pay salaries to the staff and RO 500 for buying material. She also takes RO 500 for her family expenditure. She records all the expenses in her business accounts as she only manages the business. You are required to identify whether she can record all these transaction in her business account or not. Justify your answer. (1 Mark) Use the following information for the Question Numbers 5 to 10. Mr. Mazin started a business in the month of March 2020. He has to prepare a financial statement at the end of the month for review of the operation of his business. The following transactions are given below. You are required to help Mr. Mazin to prepare his financial statement. March 1. Invested a cash of RO 50,000 and land worth RO 20,000 to start a new business March 2. Purchased machinery and other equipment's on account RO 15,000 March 3. Purchased office supplies for cash RO 1,500 March 3. Purchased insurance policy for the building RO. 960 for one year. March 4. Decided to recruit a helper next month. March 8. Provided services to a client RO 2,000 and received 60% of the amount and remaining after two months March 10. Service provided to another client Mr. Salim RO 1,200 but he agreed to pay later. March 12. Purchased Office supplies for cash RO 5,000 March 14. Mr. Mazin agreed to purchase a new machinery for RO 5,800 in the month of December 2020. March 15. Received remaining cash from the client services provided on March 8th March 17. He purchased a new car RO 12,000 for personal use with his own money. March 17. He purchased a new television for RO 889 with the money given by his father. March 18. Provided services to another client for RO 500 and he paid only RO. 150 remaining, he agreed to pay next month. March 22. Purchased a packing machine and returned it back on the same day as it was defective OMR 299. March 25. Paid cash RO. 5000 for the machinery purchased on March 2nd March 28. Took money from the business for personal use RO 1,200 March 30. Received amount from the customer whose service is provided on March 10th... March 31. Paid wages for the month RO 3000 March 31. Planned to purchase additional office supplies for RO 4,580 next month. March 31. Received water and electricity bill for the month RO. 89. From the above transaction you are required to prepare: 5. Analyze the transaction by using accounting equation. (0.5 Mark*13 = 6.5 marks) 6. Prepare the Journal entries for the month of March. (0.25 for each account= 7 marks) 7. Post the entries and calculate the balances. (0.5 Mark*13 -6.5 marks) 8. Use the balances to prepare the unadjusted trial Balance (7 marks) 9. After completing the Unadjusted trial balance use the below information to prepare the Adjusted Trial Balance (10 Marks) Additional information a. The revenue earned but not recorded at the end of the month is RO 2,000 b. Insurance expense for the month RO 80 c. The machinery has a useful life of 5 years and a residual value of RO 500. d. Office supplies at the end of the month 3200. e. Depreciation on all fixed asset to be provided 6% of the asset value. 10. Use the adjusted Trial Balance to prepare Income statement, statement of owners' equity and statement of financial Position. (8 marks)