QUESTION1 Meera started a business on January 1,2017 called Aroma, Inc. Aroma is a retail company that sells flowers and decorative plants. the following information was available on Aroma Inc. : During 2017, Aroma made sales totaling OMR 50,000 and paid OMR 42,000 in cash to its creditors. It purchased equipment costing OMR 25,000, paid OMR 1,500 for dividends and the cost of flowers and plants (goods) sold was OMR 21,000. Also, the corporation incurred the following expenses during 2017: Salaries $8,000 Interest 500 Insurance 400 Electricity 600 Rent 340 Reguirements: a Using the above information, prepare the income statement for Aroma Inc, for the year ended December31, 2017. (Rubrics: 0.25 mark for each correct element and correct form for Income Statement and heading , 0.5 mark for the correct calculations of Net Income. Total = 3 marks) b According to the information provided, what will be the effect of paying $42,000 to creditors on the accounting equation elements of Aroma Inc.? (Rubrics: 0.5 mark for correct answer. Total = 0.5 mark) Using the above information, what is the amount of retained earnings on the balance sheet prepared as of December 31, 20172 (Rubrics: I mark for correct calculation and answer. Total = 1 mark) QUESTION 2 The following accounts are from XYZ, Inc. Balance Sheet as of December 31, 2020: Building Salaries Payable Cash Share Capital Intangible Assets: Patents and Trade Mark Account Receivable Notes Payable Retained Earnings 25,000 OMR 10,000 OMR 15,000 OMR 75,000 OMR 60,000 OMR 3,000 OMR 4,500 OMR 2 Requirements: 1. What is the amount of XYZ's total Non-Current assets as of December 31, 2020? (Rubrics: I mark for the correct account balances and answer-Total 1 mark) 2. Identify the accounts listed above that are Current liabilities. (Rubrics: 0.25 mark for the correct account identification- Total 0.5 mark) 3. What is the amount of XYZ's retained earnings as of December 31, 2020? (Hint: use the extended accounting equation) (Rubrics: 0.5 mark for the correct calculation and answer - Total 2 marks) OUUUU Intangible Assets: Patents and Trade Mark Account Receivable Notes Payable Retained Earnings 3,000 OMR 4,500 OMR ? Requirements: 1. What is the amount of XYZ's total Non-Current assets as of December 31, 2020? (Rubrics: 1 mark for the correct account balances and answer- Total 1 mark) 2. Identify the accounts listed above that are Current liabilities. (Rubrics: 0.25 mark for the correct account identification-Total 0.5 mark) 3. What is the amount of XYZ's retained earnings as of December 31, 2020? (Hint: use the extended accounting equation) (Rubrics: 0.5 mark for the correct calculation and answer - Total 2 marks) 4. Prepare a balance sheet for XYZ as of December 31, 2020. (Rubrics: 0.25 mark for each correct element and correct form of balance sheet and heading, 0.5 mark for the correct calculations of totals. Total = 3.5 marks)