lailing Rele TH 20 cl | D cD Heading 5 1 Normal T No Spac.. ==== Headir Paragraph Style Part 1 - Answer the following question Question 1 (40 marks) A- The following working paper shows the unadjusted and the adjusted trial balance for Farah Company as of December 31, 2019. Umdjusted Adjusted Trial Balance Tml Balance Cash $ 47,640 S 47,640 Accrued revene 14,000 22.000 Prepaid insurance (Prepayments) 0 2.000 Office equipment 84.000 84,000 Aceum Depreciation Office equip $ 14.000 $ 20,000 Accounts payable 9.100 9.100 Interest payable (Aeenus) 0 1.000 Sakres payable (Accrual) 0 7.000 Long-tem-notes payable 32.000 52.000 Farali Capital 10.000 40.000 Farah Withdrawal 5.000 5.000 Constiling fees caned (Reremes) 123.240 131.940 Deprecation expense Office equ 6.000 Sabines espere 67.000 74.000 1.200 2200 Insurance pense 3000 3.000 14.500 14.500 Required: 1. Prepare the adjusting entries that have been made in Farah Company (11 Marks) 2. Explain the differences between the adjusting entries and other journal entries. Also, explain why adjusting entries are needed. 3 Marks) 3- Prepare Farah's income statement for the year ended December 31, 2019. (2.25 Marks) 4- Prepare Farah's balance sheet as at December 31, 2019. K2,75 Marks) Interest egese Rent expense D. The former