) Record the necessary adjusting and correcting journal entries for the year ended December 31, 2022. (45 marks). Notes: - You must show all your workings for part A, using tables, schedules, calculations and explanations, where appropriate. - Ignore VAT implications. - Screenshots are NOT allowed. B) Prepare an accounting worksheet reflecting the related accounts, unadjusted trial balance, adjustments and adjusted trial balance for the year ended December 31, 2022 (10 marks). Note: - Screenshots are NOT allowed. C) Prepare a statement of profit or loss and a statement of owners equity for the year 2022, and a statement of financial position at December 31, 2022 (21 marks). Note: - Screenshots are NOT allowed Need Appendixes 3,7,10,11

Dear Accountant, Please make sure the following considerations are appropriately reflected on the year-end financial statements: 1. Apply the straight-line method to all depreciable assets. 2. The estimated residual value of the class of equipment was to be BD5,000 with an expected useful life of 5 years. You can see the attached invoice (0154/17) received from ANCO Machines 4 years ago (see attachment 1). 3. Buildings acquired four years ago are accounted for using the cost model. The buildings are depreciated by 5% with no salvage value. 4. As per the revaluation certificate received from PPE Property Management, remember that there was no material variance between the historical cost of land and its market value as of December 28,2022 (see attachment 2). Regards, Financial Controller Client Name: Homey Electronics Co. Mailing Address P. O. Box. 23056 Bldg. No. 100 Road No. 807, Hamed Town 1208 Kingdom of Rahrain Remarks/Payment term: *Payable within 30 days from this invoice date. First Family Bank Account: 71023801012. If a cheque is used, make all cheques payable to ANCO Machines Payables Department - Finance PPE Property Management Seef District, Al Moayed Tower PO BOX:5073 Manama Kingdom Of Bahrain Date:28/12/2022 Ref: HEC-L01 Homey Electronics Co. Mailing Address P. O. Box. 23056 Bidg. No. 100 Road No. 807, Hamed Town 1208 Kingdom of Bahrain For the attention of Mr. Hesham Noor Dear Sir, Re: Valuation Report - Land (352sqm) -Located in Hamad Town We wish to thank you for your instruction to re-value this property following our report of the 13thof September 2022. We are pleased to provide our valuation as of 28th December 2022 , as this land has a current market value of BD 250,000. Kindly consider this letter as an updated certificate for your records. We trust this certificate meets the requirements of your instructions, and we remain. Yours faithfully, PPE Property Management RICS Registered Valuer CEO Subject: Additional items for consideration Dear Accountant, Please make sure the following items are appropriately reflected on the year-end financial statements: 1. Sixty percent (60%) of the performance obligation related to cash received in advance from customers is satisfied. 2. Upon inventory count, BD300 worth of supplies is still available and can be used in the following year. Regards, Financial Controller Appendix 11 From: Electricity and Water Authority To: Homey Electronics Co. BILL OF THE MONTH: December 2022 Kingdom of Bahrain DATE OF ISSUE: 31/12/2022 Customer Account No. 76543212121 Note: It is the company's policy to pay their utilities expense on the 15th day of the following month. During the internal audit at year-end, the following findings with regard to inventory were discovered. - The company purchased additional merchandise that totalled BD70,000 during the year. The aggregate purchase amount was verified and included in the unadjusted trial balance. - The value of the closing inventory, BD45,100, was initially calculated based on the inventory count conducted at year-end. However, the company did not include in the count purchased goods of BD6,000, which were in transit (terms: FOB shipping point). Also, the company did not include in the count inventory that had been sold with a cost of BD6,600, which was in transit (terms: FOB destination). The sales amount of BD7,000 was appropriately recorded in the books. - The company acted as a consignee for Sharpee Co, the consignor. The result in including the inventory goods held on consignment costing BD8,000. - An error of omission on the value of inventory on hand for Product X (a new product traded during the year) was made. However, the related purchases and sales have been appropriately accounted for and displayed in the unadjusted trial balance. Product X information is shown below: - An assessment of NRV showed no material variation from inventory cost. Yet, we emphasize the importance of using the weighted average cost flow assumption consistently unless a change of accounting method is appropriately justified. The company uses the periodic inventory system. Dear Accountant, Please make sure the following considerations are appropriately reflected on the year-end financial statements: 1. Apply the straight-line method to all depreciable assets. 2. The estimated residual value of the class of equipment was to be BD5,000 with an expected useful life of 5 years. You can see the attached invoice (0154/17) received from ANCO Machines 4 years ago (see attachment 1). 3. Buildings acquired four years ago are accounted for using the cost model. The buildings are depreciated by 5% with no salvage value. 4. As per the revaluation certificate received from PPE Property Management, remember that there was no material variance between the historical cost of land and its market value as of December 28,2022 (see attachment 2). Regards, Financial Controller Client Name: Homey Electronics Co. Mailing Address P. O. Box. 23056 Bldg. No. 100 Road No. 807, Hamed Town 1208 Kingdom of Rahrain Remarks/Payment term: *Payable within 30 days from this invoice date. First Family Bank Account: 71023801012. If a cheque is used, make all cheques payable to ANCO Machines Payables Department - Finance PPE Property Management Seef District, Al Moayed Tower PO BOX:5073 Manama Kingdom Of Bahrain Date:28/12/2022 Ref: HEC-L01 Homey Electronics Co. Mailing Address P. O. Box. 23056 Bidg. No. 100 Road No. 807, Hamed Town 1208 Kingdom of Bahrain For the attention of Mr. Hesham Noor Dear Sir, Re: Valuation Report - Land (352sqm) -Located in Hamad Town We wish to thank you for your instruction to re-value this property following our report of the 13thof September 2022. We are pleased to provide our valuation as of 28th December 2022 , as this land has a current market value of BD 250,000. Kindly consider this letter as an updated certificate for your records. We trust this certificate meets the requirements of your instructions, and we remain. Yours faithfully, PPE Property Management RICS Registered Valuer CEO Subject: Additional items for consideration Dear Accountant, Please make sure the following items are appropriately reflected on the year-end financial statements: 1. Sixty percent (60%) of the performance obligation related to cash received in advance from customers is satisfied. 2. Upon inventory count, BD300 worth of supplies is still available and can be used in the following year. Regards, Financial Controller Appendix 11 From: Electricity and Water Authority To: Homey Electronics Co. BILL OF THE MONTH: December 2022 Kingdom of Bahrain DATE OF ISSUE: 31/12/2022 Customer Account No. 76543212121 Note: It is the company's policy to pay their utilities expense on the 15th day of the following month. During the internal audit at year-end, the following findings with regard to inventory were discovered. - The company purchased additional merchandise that totalled BD70,000 during the year. The aggregate purchase amount was verified and included in the unadjusted trial balance. - The value of the closing inventory, BD45,100, was initially calculated based on the inventory count conducted at year-end. However, the company did not include in the count purchased goods of BD6,000, which were in transit (terms: FOB shipping point). Also, the company did not include in the count inventory that had been sold with a cost of BD6,600, which was in transit (terms: FOB destination). The sales amount of BD7,000 was appropriately recorded in the books. - The company acted as a consignee for Sharpee Co, the consignor. The result in including the inventory goods held on consignment costing BD8,000. - An error of omission on the value of inventory on hand for Product X (a new product traded during the year) was made. However, the related purchases and sales have been appropriately accounted for and displayed in the unadjusted trial balance. Product X information is shown below: - An assessment of NRV showed no material variation from inventory cost. Yet, we emphasize the importance of using the weighted average cost flow assumption consistently unless a change of accounting method is appropriately justified. The company uses the periodic inventory system