The following trial balance were taken from Al Nujoom Company as at 31.12.2020 Trial Balance Dr. Cr. 5 000 5 000 7 500 3750 2 500 3 000 Nome of accounts Insurance Expenses Salaries Expenses Rent Expenses Interest Expenses Phone Expenses Electricity Expenses Bad Debts Depreciation Expenses Services Revenues Interest Revenues Rent Revenues Opening Stock Purchases Sales Returns 3750 4 500 7500 7 500 5 000 11 250 45 000 8 750 Sales 83 750 8 750 100 000 Purchases Returns Capital Creditors Overdraft 7500 5 000 Loans 18 750 Notes Payable 6250 Cash 7 500 Bank 25 000 Debtors 12 500 Marketable securities 15. nnn 15 000 Marketable securities Land 17 500 Buildings 30 000 Cars 17 500 Machines 22 500 Furniture 2 500 250 000 250 000 Required: 1. Prepare Income statement According to Accrual basis 2. Prepare Closing Entries 3. Prepare Balance Sheet . . At the end of the accounting period found that Closing stock $ 10 000 Services Revenues 750/Month Interest Revenues 500/Month Rent Revenues 250/Month Interest Expenses 250/Month Phone Expenses 500 not paid yet Electricity Expenses 500 paid in advance Insurance Expenses 500/ Month Salaries Expenses 375/Month Rent Expenses 750/Month . . . . Income statement Income statement Net sales Less: cost of sales Gross Profit Less: Expenses Add: Revenue Net profit Closing entries Explanation Dr Cr Close the accounts above into Income Summary Close the accounts above into Income Summary Close Income Summary into Capital Balance sheet Current Assets Current Liabilities: Fixed Assets Long term Liabilities: Owner's equity