Q2. Short workout questions a) Assume the following data extracted from accounting records of XYZ Company, a merchandising firm Gross Purchase Br. 400,000 Sales returns and allowance 5,000 Sales discount 1,000 Purchase returns and allowance 2,000 Purchase discount 500 Gross sales 800,000 Ending inventory 40,000 Beginning inventory 50,000 Transportation in 1500 Operating expenses 150,000 Non-operating Expenses 10,000 Income Tax 30% Required: Compute Net income (net loss) for the period b) Assume that assets and liabilities increased by Br.240,000, and Br. 120,000 respectively during a given year. Assume the following additional particulars further Revenues generated during the year.Br.80,000 Additional investment made by the owner during the year .Br. 70,000 Amount withdrawn by the owner during the year.. $10,000 Required: Determine the amount of expense incurred during the year c) For each of the following, give an example of a transaction that creates the described effects: a) Decreases a liability and decreases an asset b) Increases an asset and decreases another asset c) Decreases an asset and decreases owners equity d) Increases a liability and decreases owners equity e) Increases an asset and increases a liability f) Decreases an asset and decreases a liability Maryland International College Page 3 d) Given below is a list of selected transactions performed by John Dcor during the month of December 2017. Dec. 1 Mr. John transferred cash from his personal account to the business to be used in the business, Birr 150,000. 1 Paid five months rent in advance, Birr 30,000 1 Paid annual Insurance premium of Birr 7,200 11 Purchased a truck for Birr 110,000 by paying Birr 60,000 Cash and giving a notes payable for the difference. 12 Purchased equipment on account, Birr 11,000 13 Purchased supplies on account Birr 2400. 14 Paid insurance premiums of Birr 8100 15 Received cash for services completed Birr 36,000. 18 Paid salaries of Birr 9000. 21 Paid its liabilities for the purchase of equipment made on December 12 24 Provided Service on account, Birr 52,000 27 Paid utilities expense Birr 12,500. 27 Paid miscellaneous expenses Birr 1,200. 28 Received cash from customers on account birr 24,000 30 Paid salaries to employees Birr 5,000 30. The owner withdrew Birr 2,000 for personal use. Required: a) Record the above transactions in General Journal (Journalize the above transactions) b) Post each entry to the perspective account, using T account and determine account balance for each account. Assume the following beginning balances on December 1 for selected accounts: Cash, Birr 22,000 ; Equipment, Birr 10,000; Supplies, Birr 1,000; Accounts Receivable, Birr 11,000 c) Prepare a trial balance d) Assuming that accounting period for the company ends on December 31, journalize the relevant adjustments and post the entries to the ledger e) Prepare adjusted trial balance f) Prepare the following financial statements: (a) Income statement, (b) Statement of owners equity, and (c) balance shee