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Question 1 (20 marks) Before year-end adjustments are made, the December 31, 2018 trial balance of Ahmads Adventures contains revenue of $30,000 and expenses of
Question 1 (20 marks)
Before year-end adjustments are made, the December 31, 2018 trial balance of Ahmads Adventures contains revenue of $30,000 and expenses of $7,500. Adjustments are necessary for the following items:
- Depreciation for the year is $2,000.
- Revenue earned but not yet billed is $4,000.
- Accrued interest expense is $1,000.
- Supplies used, $3,500.
- Revenue collected in advance that is now earned is $4,000.
- Portion of prepaid insurance expired during the year is $2,750.
Required:
- Record the above adjusting entries in 2018 Journal. [12 Marks]
- Open One T-account and post to Service Revenue account ONLY, then compute its adjusted balance as on December 31, 2018. (4 Marks)
- Calculate the correct Net Income (Net Loss) for Ahmads Adventures for the year ended Dec.31, 2018 (After adjustments). (4 Mark).
Please I need a good answer do not provide me pic and the number of the question.
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