PART TWO The following transactions require adjustments in the trial balance. Prepare the adjusted trial balance. 1. Depreciation on equipment for the year was 500 SR. 2. Half of the insurance is relevant to next year. 3. Accrued but unpaid employee salaries were 1,000 SR. 4. ABC Co. rents out a property for 100 SR per month. 1500 SR was received in the year ended December 31, 2019 5. ABC has a bank deposit in which it receives an interest income of 100 SR per month. At year- end, it is found that ABC received 600 SR in total. Instructions for both parts): a) Journalize and post the 2021 transactions. b) Prepare a trial balance on December 31. c) Prepare an adjusted trial balance on December 31. d) Prepare the income statement and owner's equity statement for 2021 and a classified balance sheet at December 31, 2021. PART ONE ABC Hardware Store had the following transactions during the year starting January 1, 2020. At the beginning of 2020, the ledger of ABC showed Cash of 5,000 SR, opening inventory 3000 SR (300 units at 10SR per unit) and Owner's Capital of 8,000 SR. (ABC Co. uses the FIFO method in inventory valuation). 1. ABC invested 20,000 SR cash in the business. 2. Purchased a used truck for 8,000 SR, paying 4,000 SR cash and the balance on account. 3. Paid 1,800 SR cash on a 1-year insurance policy effective January 1. 4. Paid 2,900 SR cash on amount owed on truck. 5. Paid 2,800 SR cash for employee salaries. 6. Paid 350 SR for the gasoline bill for the truck. 7. Withdraw 3000 SR cash for personal use. 8. On April 1. ABC purchased 500 units from Nasr Co., a supplier, for 15 SR per unit with a settlement discount of 5% if it paid the price within 10 days from the date of purchase. 9. On July 15, ABC purchased 700 units from El-Noor Co., a supplier, for 17 SR per unit with a settlement discount of 5% if it paid the price within 10 days from the date of purchase. 10. On August 1. ABC sold 600 units to Sami Co. at a price of 30 SR per unit with a settlement discount of 4% if the price is received within 10 days from the date of sale. (The company is not expecting the customer to take the advantage of the discount). 11. On April 6, ABC paid the full amount due to Nasr Co. 12. On August 15, ABC paid the full amount due to El-Noor Co. 13. On November, 5, Sami Co. paid the full amount due to ABC Co. 14. On October 1, ABC sold 100 units at 28 SR per unit to Nora Co. that paid the price in full at the time of the transaction F Home Test Page Layout IM 27 Colibri LAA >> Wiepot Merge Center - De format S.% Sort hus BU Conditional Formats Fomating Styles Sie op D Truck AP 1 2 3 4 $ 7 8 9 10 115 12 13 14 15 16 17 16 20 21 Adidas ' ' OA- 27 We Mg Cente WS BU Delete for S- Condition Tomatin - Tobie style Dys Santa Anda halet 140 0 F G H 25 Purchases Discount 30 31 32 33 34 25 36 37 38 39 3 5 41 42 Prepard income 45 46 4 crud loom . Type to search o 20 IN DOTM Home - Cal - 11 - >> BIUROA e fum Mere her - $ Condo forma Tag Son and ht OUR O 1 E G Sale Prepaid income Aconice 41 42 43 44 4 16 47 48 68 50 51 57 33 54 $ 5 Prepa Aurutated 156 Income Statement Lib Adjud 18 TS Dyp bar to C Cal WE MAA - Wrap Test BI USATO Merye & Grow For Agnes Conditional For Table in Durant $% Sys Good Sot Cabo G M H Income Statement 56 57 58 But Sheet Assets ties 59 60 61 Total $0.00 Owners Cute BZ 53 64 65 Gros Pro Ol FLOWS Wers 50.00 $0.00 Total Assets $0.00 67 65 69 TO 71 2 als Lands p Type here t c 2 30 F INE Home File Inert Page Layout Formats Data View Review Help Tell me what you want to do Cole 11 AM >> - - Wrap Merge - G $. %. tot Insert De Format Sort Find -- BIU- Conditional Format Cell forming Tables A To 140 D E H Owner's Equity 62 63 64 65 Gross Profit lor TESTOWE 50.00 $0.00 Total Assets $0.00 67 68 09 70 TE 72 Prati 74 75 77 TB TO BO ACC Adjustad Tll and
