(b) The following is the unadjusted trial balance extracted from the books of Mali Estate Agents as at 31st December 2020. The entity is involved in the provision of property management services and prepares its annual financial statements per the calendar year. Account Name Dr Cr Cash 725,000 Capital 600,000 Land 400,000 Office equipment 360,000 Accumulated depreciation: Office equipment Office supplies 225,000 Prepaid rent 180,000 Notes payable 960,000 Accounts payable 21,600 Drawings Service revenue 561,800 Accounts receivable 49,400 Advertising expense 13,000 Interest expense on note payable Depreciation expense: Office equipment Office supplies expense Rent expense 150,000 Salary expense 41,000 2,143,400 2,143,400 Additional information: (i) Depreciation expense on office equipment purchased on 1st July 2020 had not yet been booked. Annual depreciation expense amounts to Ksh 36,000 (ii) Office supplies as at 31st December amounted to Ksh 120,000 (iii) Interest expense on the note payable amounting to Ksh 48,000 had been omitted (iv) The prepaid rent amount of Ksh 180,000 was paid on 1st of December 2021 for the period December 2020 to February 2021. (v) Of the accounts receivable, Ksh 25,000 was settled on the very last day of the year but had been missed out by Mali’s accountant. (vi) On 25th December 2020, Bwana Mali withdrew Ksh 150,000 from the business to pay for his family’s holiday trip to Mombasa. This transaction had not been recorded Required: (i) Prepare the adjusting entries required at 31st December, 2020 and extract the adjusted trial balance
(b) The following is the unadjusted
Account Name
Dr
Cr
Cash
725,000
Capital
600,000
Land
400,000
Office equipment
360,000
Office supplies
225,000
Prepaid rent
180,000
Notes payable
960,000
Accounts payable
21,600
Drawings
Service revenue
561,800
Accounts receivable
49,400
Advertising expense
13,000
Interest expense on note payable
Depreciation expense: Office equipment
Office supplies expense
Rent expense
150,000
Salary expense
41,000
2,143,400
2,143,400
Additional information:
(i) Depreciation expense on office equipment purchased on 1st July 2020 had not yet been booked. Annual depreciation expense amounts to Ksh 36,000
(ii) Office supplies as at 31st December amounted to Ksh 120,000
(iii) Interest expense on the note payable amounting to Ksh 48,000 had been omitted
(iv) The prepaid rent amount of Ksh 180,000 was paid on 1st of December 2021 for the period December 2020 to February 2021.
(v) Of the accounts receivable, Ksh 25,000 was settled on the very last day of the year but had been missed out by Mali’s accountant.
(vi) On 25th December 2020, Bwana Mali withdrew Ksh 150,000 from the business to pay for his family’s holiday trip to Mombasa. This transaction had not been recorded
Required:
(i) Prepare the
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