QUESTION 2 (20 MARKS) The trial balance for Smart Sports is given below. SMART SPORTS Trial Balance as at 31 December 2019 Accounts Titles Dr. (RM) Cr.(RM) Capital 10,000 Loan 12,000 Sales 51.000 Purchases 34,500 Electricity 1,920 Insurance 1.750 Telephone 1,500 Sundry expenses 1.650 Drawings 7.200 Rent 1,500 Delivery costs 1.200 Printing machine 5,500 Computer 3,500 Bank 11.080 Account Receivable 4,100 Account Payable 2,400 75,400 Total 75,400 1. The following information is available to use in making adjusting entries: Ahmad's loan to the business was interest free for the first six of the year, after which time interest was to be paid at the rate of 6% per annum. No interest had been paid during the year. 2. Purchases remaining unsold in inventory at the year-end amounted to RM 2,700 3. Electricity used but not yet paid for as at the year end amounted to RM480. Insurance had been prepaid by RM351 at the year end but not yet accounted for. Required: (a) Prepare the adjusting entries for the year ended 31 December 2019. (5 marks) (b) Prepare an adjusted trial balance as at 31 December 2019 in the APPENDIX 1. (7 marks) (c) Prepare Statement of Profit or Loss for the year ended 31 December 2019. (4 marks) (d) Prepare Statement of Financial Position as at 31 December 2019, (4 marks)