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Question 2 (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 2 (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:

  1. Depreciation for the year is $2,000.
  2. Revenue earned but not yet billed is $4,000.
  3. Accrued interest expense is $1,000.
  4. Supplies used, $3,500.
  5. Revenue collected in advance that is now earned is $4,000.
  6. Portion of prepaid insurance expired during the year is $2,750.

Required:

  1. Record the above adjusting entries in 2018 Journal. [12 Marks]
  2. Open One T-account and post to Service Revenue account ONLY, then compute its adjusted balance as on December 31, 2018. (4 Marks)
  3. Calculate the correct Net Income (Net Loss) for Ahmads Adventures for the year ended Dec.31, 2018 (After adjustments). (4 Marks)

Question 3 (20 marks)

A: ABC Company uses the perpetual inventory system and had the following transactions during August 2018:

Date Transaction Amount

June. 5 Purchased inventory on account $ 240,000

June. 9 Paid for transportation of goods purchased 25,000

June. 10 Returned defective merchandise to the seller 35,000

June. 15 Paid for goods purchased on August 5 ?

Credit terms of invoice are 2/15, n/45.

Required: Prepare the general journal entries to record these transactions. Explanations are not required. [9 marks].

B: X cite Company uses Perpetual Inventory System. The following information is available for the month of March:

Mar. 1 Beginning inventory 200 units @$15

Mar. 5 Purchased 80 units @$18

Mar. 10 Sold 120 units @$30

Mar.15 Purchased 140 units @$20

Mar.25 Sold 100 units @$30

Required:

Prepare perpetual inventory record for X cite Company using LIFO inventory costing method. (11 Marks)

Question 4 (20 marks)

The following is the adjusted trial balance as of December 31, 2019 of HALA Photography:

HALA Photography

Adjusted Trial Balance

December 31, 2019

Account

Debit

Credit

Cash

$3,400

Accounts Receivable

17,000

Supplies

200

Equipment

15,000

Accumulated DepreciationEquipment

$4,000

Accounts Payable

2,400

Salaries Payable

1,600

Unearned Revenue

1,200

Common Stock

6,800

Dividends

4,600

Service Revenue

80,000

Salaries Expense

48,000

Supplies Expense

4,600

Depreciation ExpenseEquipment

3,200

______

Total

$96,000

$96,000

Requirements:

  1. Journalize the closing entries for HALA Photography (10 Marks).
  2. Compute the ending balance of Retained Earnings (after closing the entries) (4 mark).
  3. Prepare post-closing trial balance at December 31, 2019 (6 Marks)

Please I need full answer for each Question.

and please this is the third time I send the questions and no good answered please please do not send pic and send to day.

thank you.

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