Johnny Lever Enterprise is a consumer product company. Its product range includes cleaning agents, toothpaste, beauty product, personal care and health care products. The following is the trial balance of the business as at 31 December 2020. Debit (RM) Credit (RM) 294,694 11,000 4,000 5,500 51,300 1,000 2,400 10,000 790 10,000 1,000 3,000 Capital Account payable Account receivable Cash Bank Inventory as at 1 January 2020 Electricity expenses Rent Income Telephone expenses Interest expense Discount allowed Discount received Building Drawing Loan from Bank (10% interest) Insurance expense Salaries Delivery van Carriage inwards Carriage outwards Sales Purchases Purchases return Sales return Accumulated depreciation - Delivery van 400,000 3,500 200,000 3,600 24,000 70,000 1,340 2,544 123,200 66,900 6,660 7,680 7,000 655,554 655,554 The following additional information should be taken into consideration: i. The inventory as at 31 December 2020 amounted RM15,000. ii. Depreciation expense for the delivery van is to be charged at 10% per year on straight line basis. i. Interest on bank loan for half year was not yet paid. iv. Insurance expense of RM1,200 was paid in advance. v. During the year, the owner consistently took RM500 monthly from bank account. Required: a. Show adjusting entries for the relevant additional information (4 marks) b. Prepare the statement of comprehensive income for the year ended 31 December 2020. (10 marks) C. Prepare the statement of financial position as at 31 December 2020. (7 marks) d. If comparing to opening inventory at the begiming of the year, closing balance for inventory showed significant number of inventories that were unsold during the year. i. In your opinion, why is the situation happen? Explain. (2 marks) ii. What is your suggestion to the business to reduce the excess of unsold inventories? (2 marks)