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Question 2 (44 marks) The following is the trial balance for Iris Limited as at 31 December 2019: Iris Limited Trial Balance as at 31

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Question 2 (44 marks) The following is the trial balance for Iris Limited as at 31 December 2019: Iris Limited Trial Balance as at 31 December 2019 Dr 10,000 49,000 250,000 35,000 Supplies Accounts receivable Cash Furniture & fixtures Accumulated depreciation - fumiture & fixtures Uneamed service revenue Accounts payable Salary payable Share capital Retained earnings Dividends Service revenue Salary expense Rent expense Utilities expense Miscellaneous expense 7,000 40,000 12,000 33.000 180,000 45,000 3,000 300,000 180,000 60,000 24,000 6,000 617.000 617,000 Additional information: (1) The furniture & fixtures has an expected useful life of 5 years. Depreciation had not been provided for the year. (2) A physical count showed $6,000 of supplies on hand at 31 December 2019. (3) The unearned service revenue of $40,000 shown above was received in advance from a customer on 1 November 2019 During December 2019,60% of the services had been performed and no entry had been made for the service revenue eamed. Required: For Iris Limited, (a) prepare the adjusting journal entries for the above additional information (1) to (3). Narration is NOT required. basimi anni (6 marks) (b) describe the effects (increase, decrease or no effect) of the above additional describe the information (1) to (3) in the accounting equation. Use the format as shown below for your answer. (6 marks) Item Assets Labilities + Shareholders' equity 000.010.g. Increase Decrease No effect DOOST (1) 00 (2) olding ang 000.08 (3) (C) prepare the income statement for the year ended 31 December 2019 (11 marks) (d) prepare the statement of changes in equity for the year ended 31 December 2019 (5 marks) re the statement of financial position as at 31 December 2019. (16 marks)

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