Question 1 (20 marks) Before year-end adjustments are made, the December 31, 2019 trial balance of XYZ's Adventures contains revenue of $10,000 and expenses of $8,700. Adjustments are necessary for the following items: 1. Depreciation for the year is $2,000. 2. Revenue earned but not yet billed is $5,300. 3. Accrued interest expense is $1,100. 4. Supplies used, S150 5. Revenue collected in advance that is now earned is $9.000. 6. Portion of prepaid insurance expired during the year is $600. Requirements: a) Record the above adjusting entries in the Journal. [12 Marks) b) Open One T-account and post to Service Revenue account ONLY, then compute its adjusted balance as on December 31,2019. [4 Marks) c) Calculate the correct Net Income (Net Loss) for XYZ's Adventures for the year ended Dec.31, 2019 (After adjustments). [4 Marks] Question 2 (14 marks) Modern Furniture Company uses Perpetual Inventory System. During the month of June, Modern Fumiture Company purchased and sold merchandise on account as follows: June 1 Beginning inventory 40 units @600 each Purchase 30 units @ $700 each 14 Sale 25 units @ $1,000 each 18 Purchase 35 units @ $800 each 27 Sale 40 units @ $1,250 each 7 a) Prepare perpetual inventory record for Modern Furniture Company using LIFO inventory costing 13. A company purchased inventory for $73,000 from a vendor on account, FOB shipping point, with terms of 4/10, n 30. The company paid the shipper $1,500 cash for freight in The company paid the vendor nine days after the sale. If there was no beginning inventory, the cost of inventory would be (Assume a perpetual inventory system) A. $71,580 B. $74,500 C. $68.580 D. $71,500