The unadjusted trial balance for Lamb Company at December $31,2025$ is as follows:

LAMB COMPANY

Unadjusted Trial Balance

Year Ended December $31,2025$

Debit Credit

Accounts Receivable $$21,000$

Supplies $4,600$

Prepaid rent $2,200$

Equipment $110,000$

Accumulated depreciation $$ equipment $$17,000$

Bank overdraft $6,000$

Accounts Payable $9,800$

Note Payable $6,400$

Unearned revenue $6,000$

K$.$ Lamb, capital $99,000$

K$.$ Lamb, drawings $19,500$

Service revenue $102,800$

Promotion expense $27,000$

Insurance expense $5,000$

Rent expense $15,000$

Salaries expense $36,700$

Maintenance expense $6,000$

Totals $$247,000$ $$247,000$

The following information was prepared by Lamb Company$$s controller to help prepare the December $31,2025$ adjusting entries:

$1.$ The company has earned revenue totaling $$6,000$ that has not been invoiced.

$2.$ The expired portion of prepaid rent is $$750.$

$3.$ The earned portion of the Unearned revenue at December $31,2025$ is $$2,750$

$4.$ Depreciation expense for the Equipment has been calculated as $$12,000.$

$5.$ Employees have earned but have not been paid salaries of $$6,800.$

Required:

a$)$ Prepare the adjusting entries that Lamb Company should record at the year ended December $31,2025.$

b$)$ Prepare the appropriate reversing entries relating to the adjustments made in $($a$)$ above.

Question $2$:

Martin Sports Equipment sells a variety of sports items. The following data relates to Martin$$s inventory of golf club sets. On March $1,2024,$ Martin had $22$ sets of clubs in inventory at a cost of $$395$ each. During March, the following transactions occurred:

Mar. $2$ Sold seven sets of clubs on account to Flex Golf Club for $$560$ each, cost of goods sold is $$2,765.$ Terms $2/10,$ n$/30.$

$2$ Martin Sports paid cash of $$275.$ to ship clubs to Flex Gold Club.

$4$ Flex Golf Club returned two sets of clubs. Martin returned the clubs to inventory.

$11$ Flex Golf Club paid the account in full.

$15$ Purchased eight sets of clubs from Taylor Sports Canada at $$395,$ terms n$/30.$

$17$ Freight of $$600$ on the purchase from Taylor was FOB destination and was paid by the appropriate party.

$18$ Sold six sets of clubs at $$560$ each for cash, and gave a $5\%$ discount to the customer for paying cash. Each set of clubs cost $$395.$

$22$ Purchased $11$ sets of clubs from Lopez Golf for $$400$ each, terms $3/10,$ n$/30.$

$24$ Returned one set of clubs to Lopez Golf because they were defective.

$31$ Paid the Lopez Golf account.

Required:

a$)$ Using the perpetual inventory system, prepare the journal entries to record the transactions for the month of March.

b$)$ Prepare each entry that is different under a periodic inventory system. $($if you include entries that are not different in your journal marks will be deducted$).$

Question $3$:

The adjusted account balances of Johanna Ltd$.$ at December $31,2027,$ are as follows:

Accounts receivable $ $6,000$ Accounts payable $ $11,000$

Notes receivable $6,000$ Unearned revenue $2,300$

Merchandise inventory $17,600$ Notes payable $56,800$

Equipment $74,000$ Accumulated depreciation$$

Depreciation expense $22,900$ equipment $9,200$

J$.$ Johanna, drawings $16,000$ Sales $62,500$

Utilities expense $2,200$ Rent revenue $10,000$

Sales discounts $3,300$ J$.$ Johanna, capital $18,000$

Cost of goods sold $20,000$

Sales returns and allowances $\_\_\_\_1,800\_\_\_\_\_\_\_\_\_\_\_$

$$169,800$ $$169,800$

Required:

a$)$ Prepare a multi$-$step income statement for the year ended December $31,2027.$

b$)$ Prepare closing entries for December $31,2027.$