B: Answer any ONE question from this section Question 11 Morgan Supplies PLC Trial Balance 31 December 2017 CCUSTUOT-WEUT Account Cash Debit Credit 5,000 Notes Receivable (Due 1 Feb 2018) 10,000 Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance 15,000 500 9,000 Merchandise Inventory 25,000 Supplies 4,000 Equipment 12,000 Accumulated Depreciation-Equipment 2,750 Building 100,000 Accumulated Depreciation - Building 10,000 Land 250,000 Notes Payable (Due 1 Dec. 2021) 50,000 Accounts Payable 20,000 Common Stock 250,000 Retained Earnings (As at 1 Jan. 2017) 86,750 Dividends 8,000 Sales 130,000 Sales Returns and Allowances 4,000 Sales Discounts 1,000 Cost of Goods Sold 30,000 Salary Expense 50,000 Utility Expense Supplies Expense Rent Expense 15,000 10,000 2,000 Other data: 550,000 550,000 1. Expired insurance is 750 for the month of December 2017. 2 A count of supplies on 31 December 2017 shows 1,000 of supplies on hand. 3. The equipment has a salvage value of 1,000 and a useful life of 20 years, while the building has a useful life of 50 years with no salvage value. Both the equipment and building were purchased on 1 January 2012. There has been no adjustment to account for depreciation for the year to date. 4. Salaries of 10.000 were unpaid and unrecorded at 31 December 5. The note payable's interest rate is 12%. This note was issued on 1 December 2017 6. Non-operating expenses of 2.000 is due but has not yet been recorded Required: a) Journalise any relevant adjusting entries for the month of December 2017. b) Prepare a multiple-step income statement for the year ended 31 December 2017. c) Prepare a retained earnings statement for the year ended 31 December 2017. d) Prepare a classified statement of financial position as at 31 December 2017. (35 Marks) (30 Marks) (5 Marks) (35 Marks) (Total: 100 marks)