Walid started land transport and cargo business in Dubai on 1 January 2019. First year of his business has been good due to high demand of goods transportation services within the UAE. To run the business, he hired driver, staff for handling goods and office management. However, he did not hire any professional accountant and needs your help to record below given selected transactions occurred in first year of his business 1 January Walid invested AED 700,000 cash in his new business and introduced his personal car worth AED 50,000 for business purpose. 5 January Paid rent AED 70,000 in advance for two years (2019 & 2020) 8 January Paid AED 8,000 for obtaining business license from Dubai Economic Department (Debit: Trade and Legal Expenses) 10 January Purchased 2 used trucks on cash for AED 120,000 15 January Purchased office computer AED 2,000 and furniture AED 3,000 on cash 25 January Paid for fuel for trucks and company car AED 1,500 (Debit: Fuel Expenses) 30 January Provided transportation services to local clidis Oish AED 30,500 5 February Paid salaries to the employees and staff AED 9,000 20 February Purchased 2 more used trucks on credit of 180 days for AED 135,000 28 February Provided services of AED 4,500 on 30-day credit to a client, United Traders 15 March One of the trucks got a minor damage and was repaired. Walid paid AED 1,300 for the repair (Debit: Repair and Maintenance Expenses) 28 March Received cash from United Traders for services provided on 28 February 31 March Provided services of AED 63,000. Half of this amount was received in cash and remaining on 60 days credit. 10 April Purchased office supplies for AED 2,000 on cash 28 April Incurred advertising cost AED 2,000 on 30-day credit 28 May Paid for advertising cost incurred on 28 April 31 May Provided services of AED 90,500 to clients on cash. 31 May Received the remaining half of the amount due for services recorded on 31 March 20 June Paid commission AED 3,000 to a broker for obtaining clients (Debit: Sales commission Expense) 15 July Held a party for staff employees during the month costing AED 2,400 (Debit Entertainment expense) 28 July Paid to Anwar Garage for periodic maintenance of trucks AED 3,600 (Debit: Repair and Maintenance Expenses) 20 August Paid AED 135,000 for the trucks purchased on 20 February 20 Nov Received advance payment of AED 48,000 against 1 year contract for cargo services with a client Allaha Din Trading starting December 1, 2019 (Credit: Unearned service revenue). 30 Nov Provided cargo services of AED 71,000 to clients on cash. 1 Dec Borrowed AED 80,000 from RAK bank for overhauling company vehicles at the rate of 6% interest per annum (per year). (Credit: Bank loan payable) 15 Dec Paid AED 35,000 for the equipment purchased on 10 September 15 Dec Paid salaries to the staff AED 63,000 Adjusting Entries 31 Dec office supplies on hand are AED 800. (Total supplies purchased AED 6,000) 31 Dec AED 70,000 rent was paid in advance for two years on 5 January 2019 31 Dec Insurance expires at the rate of AED 2,000 per month 31 Dec Depreciation for the year on company trucks is AED 25,000 and car is AED 2,000 31 Dec Interest expense accrued on bank loan is not yet paid or recorded 31 Dec Unearned service revenues of AED 4,000 have been earned by 31 December 31 Dec Utilities expenses of AED 3,000 have been accrued but not yet paid or recorded 31 Dec Salaries of AED 18,000 have been accrued by 31 December but not yet paid or accrued. Requirements: 1. Journalize all transactions given above including adjustments. Use properly formatted general journal. Accounts are to be adjusted at the end of the year. (50 marks) Following accounts balances after adjustments have been extracted from the accounting record of Walid Land Transport for the year ended 31 December 20019. Walid Land Transport Accounts Accounts Cash 449,700 Unearned services revenues 44,000 Accounts payable 9,000 Bank loan payable 80,000 Accounts receivable 64,000 Advertising expenses 2,000 Prepaid rent 35,000 Service revenues 420,000 Interest expense 400 Office computer 2,000 Salaries expense 280,000 Furniture 3,000 Trucks 230,000 Interest payable 400 Insurance expense 4,000 Capital, Walid 700,000 Fuel expenses 7,900 Depreciation expense 27,000 Prepaid insurance 20,000 Repair and Maintenance expense 1,300 Drawings, Walid 20,000 Supplies expense 5,200 Car 48,000 Sales commission expense 3,000 Office supplies 800 Rent expense 35,000 Trade and legal expenses 8,000 Salaries payable 31,500 Equipment 35,000 Entertainment expense 3,600 2. Prepare adjusted trial balance as of December 31, 2019. (20 marks) 3. Prepare following financial statements for Walid's business: (30 marks) a. Income statement, statement of owner's equity for the year ended 31 December 2019 b. Prepare a balance sheet as on 31 December 2019. Walid started land transport and cargo business in Dubai on 1 January 2019. First year of his business has been good due to high demand of goods transportation services within the UAE. To run the business, he hired driver, staff for handling goods and office management. However, he did not hire any professional accountant and needs your help to record below given selected transactions occurred in first year of his business 1 January Walid invested AED 700,000 cash in his new business and introduced his personal car worth AED 50,000 for business purpose. 5 January Paid rent AED 70,000 in advance for two years (2019 & 2020) 8 January Paid AED 8,000 for obtaining business license from Dubai Economic Department (Debit: Trade and Legal Expenses) 10 January Purchased 2 used trucks on cash for AED 120,000 15 January Purchased office computer AED 2,000 and furniture AED 3,000 on cash 25 January Paid for fuel for trucks and company car AED 1,500 (Debit: Fuel Expenses) 30 January Provided transportation services to local clidis Oish AED 30,500 5 February Paid salaries to the employees and staff AED 9,000 20 February Purchased 2 more used trucks on credit of 180 days for AED 135,000 28 February Provided services of AED 4,500 on 30-day credit to a client, United Traders 15 March One of the trucks got a minor damage and was repaired. Walid paid AED 1,300 for the repair (Debit: Repair and Maintenance Expenses) 28 March Received cash from United Traders for services provided on 28 February 31 March Provided services of AED 63,000. Half of this amount was received in cash and remaining on 60 days credit. 10 April Purchased office supplies for AED 2,000 on cash 28 April Incurred advertising cost AED 2,000 on 30-day credit 28 May Paid for advertising cost incurred on 28 April 31 May Provided services of AED 90,500 to clients on cash. 31 May Received the remaining half of the amount due for services recorded on 31 March 20 June Paid commission AED 3,000 to a broker for obtaining clients (Debit: Sales commission Expense) 15 July Held a party for staff employees during the month costing AED 2,400 (Debit Entertainment expense) 28 July Paid to Anwar Garage for periodic maintenance of trucks AED 3,600 (Debit: Repair and Maintenance Expenses) 20 August Paid AED 135,000 for the trucks purchased on 20 February 20 Nov Received advance payment of AED 48,000 against 1 year contract for cargo services with a client Allaha Din Trading starting December 1, 2019 (Credit: Unearned service revenue). 30 Nov Provided cargo services of AED 71,000 to clients on cash. 1 Dec Borrowed AED 80,000 from RAK bank for overhauling company vehicles at the rate of 6% interest per annum (per year). (Credit: Bank loan payable) 15 Dec Paid AED 35,000 for the equipment purchased on 10 September 15 Dec Paid salaries to the staff AED 63,000 Adjusting Entries 31 Dec office supplies on hand are AED 800. (Total supplies purchased AED 6,000) 31 Dec AED 70,000 rent was paid in advance for two years on 5 January 2019 31 Dec Insurance expires at the rate of AED 2,000 per month 31 Dec Depreciation for the year on company trucks is AED 25,000 and car is AED 2,000 31 Dec Interest expense accrued on bank loan is not yet paid or recorded 31 Dec Unearned service revenues of AED 4,000 have been earned by 31 December 31 Dec Utilities expenses of AED 3,000 have been accrued but not yet paid or recorded 31 Dec Salaries of AED 18,000 have been accrued by 31 December but not yet paid or accrued. Requirements: 1. Journalize all transactions given above including adjustments. Use properly formatted general journal. Accounts are to be adjusted at the end of the year. (50 marks) Following accounts balances after adjustments have been extracted from the accounting record of Walid Land Transport for the year ended 31 December 20019. Walid Land Transport Accounts Accounts Cash 449,700 Unearned services revenues 44,000 Accounts payable 9,000 Bank loan payable 80,000 Accounts receivable 64,000 Advertising expenses 2,000 Prepaid rent 35,000 Service revenues 420,000 Interest expense 400 Office computer 2,000 Salaries expense 280,000 Furniture 3,000 Trucks 230,000 Interest payable 400 Insurance expense 4,000 Capital, Walid 700,000 Fuel expenses 7,900 Depreciation expense 27,000 Prepaid insurance 20,000 Repair and Maintenance expense 1,300 Drawings, Walid 20,000 Supplies expense 5,200 Car 48,000 Sales commission expense 3,000 Office supplies 800 Rent expense 35,000 Trade and legal expenses 8,000 Salaries payable 31,500 Equipment 35,000 Entertainment expense 3,600 2. Prepare adjusted trial balance as of December 31, 2019. (20 marks) 3. Prepare following financial statements for Walid's business: (30 marks) a. Income statement, statement of owner's equity for the year ended 31 December 2019 b. Prepare a balance sheet as on 31 December 2019