Required: a) Prepare the Trial Balance corresponding to the above information. (8 marks) b) Considering the following additional information, prepare the Income Statement for Happiness Ltd. on 31/12/2021. Additional Information: 1) Inventory equals 20,500 on 31/12/2021. 2) The accrued expenses in the trial balance correspond to the electricity expense for the year that has not been paid in the current accounting period. The amount of salary expense from the trial balance corresponds to the salaries of the year that have not been paid during the current accounting period. 3) Non-current assets are depreciated using the straight-line method. Buildings have a residual value of 0 and a useful life of 20 years. The transportation element has a residual value of 10,000 and a useful life of 10 years. 4) On 31/12/2021 the transportation element is sold for 100,000. 5) Managers of Happiness Ltd. estimate that the provision for doubtful debts needs to equal the 20% of the trade receivables final balance. Page 2 of 4 6) On 30/06/2021, Happiness Ltd. acquires on cash an insurance for 24 months for 32,400 paid on cash. 7) Corporate tax percentage is 19%. (15 marks) c) Draw the journal entries corresponding to the additional information from point b). (12 marks) Required: a) Prepare the Trial Balance corresponding to the above information. (8 marks) b) Considering the following additional information, prepare the Income Statement for Happiness Ltd. on 31/12/2021. Additional Information: 1) Inventory equals 20,500 on 31/12/2021. 2) The accrued expenses in the trial balance correspond to the electricity expense for the year that has not been paid in the current accounting period. The amount of salary expense from the trial balance corresponds to the salaries of the year that have not been paid during the current accounting period. 3) Non-current assets are depreciated using the straight-line method. Buildings have a residual value of 0 and a useful life of 20 years. The transportation element has a residual value of 10,000 and a useful life of 10 years. 4) On 31/12/2021 the transportation element is sold for 100,000. 5) Managers of Happiness Ltd. estimate that the provision for doubtful debts needs to equal the 20% of the trade receivables final balance. Page 2 of 4 6) On 30/06/2021, Happiness Ltd. acquires on cash an insurance for 24 months for 32,400 paid on cash. 7) Corporate tax percentage is 19%. (15 marks) c) Draw the journal entries corresponding to the additional information from point b). (12 marks) Required: a) Prepare the Trial Balance corresponding to the above information. (8 marks) b) Considering the following additional information, prepare the Income Statement for Happiness Ltd. on 31/12/2021. Additional Information: 1) Inventory equals 20,500 on 31/12/2021. 2) The accrued expenses in the trial balance correspond to the electricity expense for the year that has not been paid in the current accounting period. The amount of salary expense from the trial balance corresponds to the salaries of the year that have not been paid during the current accounting period. 3) Non-current assets are depreciated using the straight-line method. Buildings have a residual value of 0 and a useful life of 20 years. The transportation element has a residual value of 10,000 and a useful life of 10 years. 4) On 31/12/2021 the transportation element is sold for 100,000. 5) Managers of Happiness Ltd. estimate that the provision for doubtful debts needs to equal the 20% of the trade receivables final balance. Page 2 of 4 6) On 30/06/2021, Happiness Ltd. acquires on cash an insurance for 24 months for 32,400 paid on cash. 7) Corporate tax percentage is 19%. (15 marks) c) Draw the journal entries corresponding to the additional information from point b). (12 marks) Required: a) Prepare the Trial Balance corresponding to the above information. (8 marks) b) Considering the following additional information, prepare the Income Statement for Happiness Ltd. on 31/12/2021. Additional Information: 1) Inventory equals 20,500 on 31/12/2021. 2) The accrued expenses in the trial balance correspond to the electricity expense for the year that has not been paid in the current accounting period. The amount of salary expense from the trial balance corresponds to the salaries of the year that have not been paid during the current accounting period. 3) Non-current assets are depreciated using the straight-line method. Buildings have a residual value of 0 and a useful life of 20 years. The transportation element has a residual value of 10,000 and a useful life of 10 years. 4) On 31/12/2021 the transportation element is sold for 100,000. 5) Managers of Happiness Ltd. estimate that the provision for doubtful debts needs to equal the 20% of the trade receivables final balance. Page 2 of 4 6) On 30/06/2021, Happiness Ltd. acquires on cash an insurance for 24 months for 32,400 paid on cash. 7) Corporate tax percentage is 19%. (15 marks) c) Draw the journal entries corresponding to the additional information from point b). (12 marks)