Q2. GST version (25 Marks) The following account balances, prepared on an accrual basis, relate to Chen Zone Ltd for the year ended at 30 June 2019. Salaries Security expenses Rent expense Repairs and maintenance expense Accounting and audit fees Interest on loan Loan from bank (payable 30 Oct. 2021) Lighting & power Equipment (cost) Accumulated depreciation - equipment (1July 2018) Share capital Retained profits 1 July 2018 Cash at bank Income Bad debts expense Accounts payable $98 000 $35 000 $14000 $37 000 $7 100 $6 000 $60 000 $23 000 $610 400 $60 000 $400 000 $37 000 $26 000 $290 000 $2 300 $11 800 Additional information ar 30 June 2019: i. Salaries need to include an additional $3,000 owing to employees for the last week of June 2019. ii. Repairs and maintenance of $37,000 above includes an amount of $4,000 paid in advance for work to be completed in July 2019. iii. $20,000 depreciation is to be charged on equipment for the year. Required: a. Prepare the balance day adjustment journals for i, ii and iii above (5 Marks) b. Prepare an income statement for Chen Zone Ltd for the year ending 30 June 2019. (5 Marks) c. Prepare a classified balance sheet for Chen Zone Ltd at 30 June 2019.(5 Marks) d.Explain why adjusting entries are needed (10 Marks)