Question $2$

$52$ Marks

Use the trial balance in question $1$ for the following adjustments.

Insurance is $N$$$100$ per month.

Salaries expense was only paid for ten months.

The rent was not paid for the last two months.

Stationery on hand amounted to $N$$$300.$

Telephone expenses were paid until April $302024.$

For sales worth $N$$$5,000,$ goods will only be delivered to the customer on April $302024.$

ABC estimated that $1\%$ of its customers might not settle their accounts on February $29,2024.$

Depreciation for January and February $2024$ was overcharged by $N$$$500.$

Interest on loans for February $2024$ was $N$$$50.$

Electricity was paid until October $312024.$

Required:

a$)$ Prepared adjusting journals as of February $292024.$ Narration is not needed. $20$ Marks

b$)$ Prepare an adjusted trial balance as of February $292024.$

$32$ Marks

Question $3$

$24$ Marks

Use the information in question $2$ above.

a$)$ Prepare a statement of comprehensive income as of February $292024.$

$17$ Marks

b$)$ Prepare a statement of financial position $($Current Assets section only$)$

$7$ Marks.