The following trial balance were taken from Al Nujoom Company as at 31.12.2020 Trial Balance Dr. Cr. 5 000 5 000 7500 3750 Name of accounts Insurance Expenses Salaries Expenses Rent Expenses Interest Expenses Phone Expenses Electricity Expenses Bad Debts Depreciation Expenses Services Revenues Interest Revenues 2500 3 000 3750 4 500 7500 7500 Rent Revenues 5 000 11 250 Opening Stock Purchases 45 000 Sales Returns 8 750 Sales 83 750 Purchases Returns 8.750 Capital Creditors 100 000 7500 Overdraft 5 000 Loans 18 750 Notes Payable 6 250 6&cmid=67838 Cash 7500 Cash 7 500 Bank 25 000 Debtors 12 500 Marketable securities 15 000 Land 17 500 30 000 Buildings 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 . Rent Expenses 750/Month Income statement Net sales Less.cost of sales Gross Profit Less Expenses Add Revenue Close the accounts above into Income Summary Close Income Summary into Capital Balance sheet Current Liabilities: Current Assets Fixed Assets Long term Liabilities Owner's equity Net profit Closing entries Explanation Dr Cr Close the accounts above into Income Summary