The assignment The following unadjusted trial balance is for Ali Al Bad PharmaHealth Company as of the end of The following additional information was provided at year end: 1. The April 30, 2021, credit balance of the owner's capital account was AED 460,000 , and the owner invested AED 400,000 cash in the company during the 2022 fiscal year. 2. The April 30, 2022 inventory balance is AED 800,000. 3. From experience, 3% of accounts receivable are uncollectable. All sales are on credit. 4. The supplies available at the end of fiscal year 2022 had a cost of AED70,000. 5. The cost of expired insurance for the fiscal year is AED100,000. 6. The equipment was bought two years ago. It has a useful life of 20 years and a residual value of $600,000. 7. The April utilities expense of AED 8000 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. 8. The company's employee wages of AED20,000 for April would be paid after the fiscal year-end. 9. Rent is paid up for one year which ends one month after the end of the fiscal year-end. 10. Additional property taxes of AED5,500 have been assessed for this fiscal year but have not been paid or recorded in the accounts. 11. The long-term note payable bears interest at 12% per year. The interest for April has not yet been paid or recorded. Required 1. Prepare journal entries to record the above adjustments. Prepare a worksheet to show the effect of these adjustments on the income statement and balance sheet. 2. Post the above journal entries to the ledger and prepare an adjusted trial balance. 3. Prepare journal entries to close the temporary balances and prepare the post-closing trial balance. 4. Prepare the following financial statements as at end of the fiscal year: a. Income statement b. Statement of changes in equity c. Statement of financial position 5. Compute two appropriate ratios each to assess the following aspects of Ali Al Bad Car Wash Company: a. Profitability b. Liquidity c. Solvency 6. Explain what each of the ratios you computed indicates about each of the three aspects of Ali Al Bad's performance above. The assignment The following unadjusted trial balance is for Ali Al Bad PharmaHealth Company as of the end of The following additional information was provided at year end: 1. The April 30, 2021, credit balance of the owner's capital account was AED 460,000 , and the owner invested AED 400,000 cash in the company during the 2022 fiscal year. 2. The April 30, 2022 inventory balance is AED 800,000. 3. From experience, 3% of accounts receivable are uncollectable. All sales are on credit. 4. The supplies available at the end of fiscal year 2022 had a cost of AED70,000. 5. The cost of expired insurance for the fiscal year is AED100,000. 6. The equipment was bought two years ago. It has a useful life of 20 years and a residual value of $600,000. 7. The April utilities expense of AED 8000 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. 8. The company's employee wages of AED20,000 for April would be paid after the fiscal year-end. 9. Rent is paid up for one year which ends one month after the end of the fiscal year-end. 10. Additional property taxes of AED5,500 have been assessed for this fiscal year but have not been paid or recorded in the accounts. 11. The long-term note payable bears interest at 12% per year. The interest for April has not yet been paid or recorded. Required 1. Prepare journal entries to record the above adjustments. Prepare a worksheet to show the effect of these adjustments on the income statement and balance sheet. 2. Post the above journal entries to the ledger and prepare an adjusted trial balance. 3. Prepare journal entries to close the temporary balances and prepare the post-closing trial balance. 4. Prepare the following financial statements as at end of the fiscal year: a. Income statement b. Statement of changes in equity c. Statement of financial position 5. Compute two appropriate ratios each to assess the following aspects of Ali Al Bad Car Wash Company: a. Profitability b. Liquidity c. Solvency 6. Explain what each of the ratios you computed indicates about each of the three aspects of Ali Al Bad's performance above