Question 1 (40 marks) A- The following working paper shows the unadjusted and the adjusted trial balance for Farah Company as of December 31, 2019. Cash Acomed reve Accounts payable Prepaid ice (Prepay) Office equipment Accun Depreciation-Office equip Interest payable (Acanal) Sabries payable (Acenab) Long-tema notes payable Fash Capital Farah Withdrawal Consulting fees eamed (Revesnes) Depreciation expeme-Office equip Sabres expe Interest expen Ince expense Ret expen Required: Undated Trial Balance Adjusted Trial Balance $ 47,640 14,000 $ 47,640 22.000 2,000 84,000 84,000 $ 14,000 $ 20,000 9.100 9.100 0 1.000 0 7,000 52.000 52.000 40,000 40,000 5,000 5.000 123.240 131,240 6,000 67,000 74.000 1.200 2.200 5000 3,000 14,500 14,500 1- Prepare the adjusting entries that have been made in Farah Company. (11 Marks) 2- Explain the differences between the adjusting entries and other journal entries. Also, explain why needed. (3 Marks) adjusting entries are 3- Prepare Farah's income statement for the year ended December 31, 2019. (2.75 Marks) 4- Prepare Farah's balance sheet as at December 31, 2019. (2.75 Marks) B- The following information pertains to Nour Company: 1- Equipment was purchased on July 1, 2018 for $140,000. It is useful life is 5 years and it can be sold $20,000. after the 5 years for 2- Building was purchased on January 1, 2018 for $200,000. It is useful life is 20 years and depreciated on a reducing balance rate of 10%. 3- Furniture was purchased on April 1, 2017 for $80,000. Its salvage value is $20,000 and depreciated on a straight-line balance rate of 20%. 4. On December 31, 2019 the balance of Receivables was $110,000 and the balance of Allowance of irrecoverable receivables was $14,000. Before adjusting the accounts, Nour finds that receivables of $10,000 need to be written off as irrecoverable, and the allowance for receivables is to be set at ten percent of the remaining outstanding receivables as at 31 December 2019.