Some selected balances of DD Co. for the year ended Dec-31-2019 are as follows with their normal balances before adjustments: 

Cash and Cash Equivalent Br 20,000 

Owners’ Capital 40,000

Notes Receivables 45,000 

Retained Earnings 75,000

Office Supplies 12,000 

Sales Revenues 640,000

Prepaid Insurance 72,000 

Interest Income 12,000

Inventory (Average Cost) 24,000 

Cost of Goods Sold 320,000

Fixed Assets 120,000 

Selling Expenses 21,000

Accum. Depr- Fixed assets 36,000 

Salary and Wages Expense 105,000

Unearned Rent (Liability) 56,000 

Rent Expense 15,000

Required

a. Prepare the necessary adjusting entries for the following items as not yet recorded onDec-31-2019:

i. The office supplies consumed during the year is Br 8,000

ii. The Unexpired part of insurance is only Br 26,000

iii. Br 30,000 is earned sales revenues from the unearned advance collection

iv. Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000

v. Depreciation Expenses allocated for the year amounts to be Br 15,000

vi. There are accrued interest of Br 8,000 on the notes receivable

b. Prepare the following Financial Statements after adjustments on Dec-31- 2019.

i. Balance Sheet ii. Income Statement

c. Prepare closing journal entries after balances are adjusted and show the final closing of Income Summary to Retained Earnings