Question i) Journalizing and posting closing entries is a required step in the accounting cycle. Explain the process of closing the books and discuss why it is necessary to close the books at the end of an accounting period. (5 marks) ii) Banda opened a company called NEMCHEM Cleaners on March 1, 2019. During March, the following transactions were completed. Mar. 1 Issued 10,000 shares of common stock for K15, 000 cash. 1 Purchased used truck for K8,000, paying K3,000 cash and the balance on credit. 3 Purchased cleaning supplies for K2,000 on credit. 5 Paid K2, 400 cash on a 6-month insurance policy effective March 1. 14 Billed customers K3,700 for cleaning services. 18 Paid K1, 500 cash on amount owed on truck and K500 on amount owed on cleaning supplies. 20 Paid K1,750 cash for employee salaries. 21 Collected K1,600 cash from customers billed on March 14. 28 Billed customers K4,200 for cleaning services. 31 Paid K350 for gas and oil used in truck during month (use Maintenance and Repairs Expense). 31 Declared and paid a K900 cash dividend. The chart of accounts for NEMCHEM Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies(inventory), Prepaid Insurance, Equipment, Accumulated DepreciationEquipment, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense. Required (a) Journalize the March transactions (12 marks). (b) Post to the ledger accounts. (Use T-accounts.)and Prepare a trial balance at March 31 (8 marks) (c) Journalize the following adjustments.(5 marks) 1. Services performed but unbilled at March 31 was K200. 2. Depreciation on equipment for the month was K250. 3. One-sixth of the insurance expired. 4. An inventory count shows K280 of cleaning supplies on hand at March 31 . 5. Accrued but unpaid employee salaries were K1,080. (d) Prepare the income statement and a retained earnings statement for March and a statement of financial position( 9 marks). (e) Journalize and post closing entries and complete the closing process. (6 marks) (f) Prepare a post-closing trial balance at March 31.(5 marks) Question i) Journalizing and posting closing entries is a required step in the accounting cycle. Explain the process of closing the books and discuss why it is necessary to close the books at the end of an accounting period. (5 marks) ii) Banda opened a company called NEMCHEM Cleaners on March 1, 2019. During March, the following transactions were completed. Mar. 1 Issued 10,000 shares of common stock for K15, 000 cash. 1 Purchased used truck for K8,000, paying K3,000 cash and the balance on credit. 3 Purchased cleaning supplies for K2,000 on credit. 5 Paid K2, 400 cash on a 6-month insurance policy effective March 1. 14 Billed customers K3,700 for cleaning services. 18 Paid K1, 500 cash on amount owed on truck and K500 on amount owed on cleaning supplies. 20 Paid K1,750 cash for employee salaries. 21 Collected K1,600 cash from customers billed on March 14. 28 Billed customers K4,200 for cleaning services. 31 Paid K350 for gas and oil used in truck during month (use Maintenance and Repairs Expense). 31 Declared and paid a K900 cash dividend. The chart of accounts for NEMCHEM Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies(inventory), Prepaid Insurance, Equipment, Accumulated DepreciationEquipment, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense. Required (a) Journalize the March transactions (12 marks). (b) Post to the ledger accounts. (Use T-accounts.)and Prepare a trial balance at March 31 (8 marks) (c) Journalize the following adjustments.(5 marks) 1. Services performed but unbilled at March 31 was K200. 2. Depreciation on equipment for the month was K250. 3. One-sixth of the insurance expired. 4. An inventory count shows K280 of cleaning supplies on hand at March 31 . 5. Accrued but unpaid employee salaries were K1,080. (d) Prepare the income statement and a retained earnings statement for March and a statement of financial position( 9 marks). (e) Journalize and post closing entries and complete the closing process. (6 marks) (f) Prepare a post-closing trial balance at March 31