Question # 3 (2 Marks Each = 10) Following is the trial balance of PMG & Co. on December 31, 2005: Debit Credit Cash 36,000 Accounts receivable 54,000 Allowance for doubtful debts 900 Merchandise inventory 36,000 Pre-paid salaries 4,000 Equipment 72,000 Allowance for Dep. equipment 4,500 Accounts payable 18,000 Capital 90,000 Salaries payable 10,000 Sales 362,000 Cost of goods sold 221,400 Salaries expense 35,000 Office supplies expense 9,000 Rent expense 11,520 Insurance expense 6,480 485,400 485,400

Required: Give adjusting entries of the following information, considering each case separately: also mention what amount of salaries expenses, salaries payable and prepaid salaries should be reported in the income statement and balance sheet. (i) If salaries payable on December 31, 2005 Rs. 12,000 (ii) If salaries payable on December 31, 2005 Rs. 6,000 (iii) If salaries expense for the year Rs. 36,000 (iv) If salaries expense for the year Rs. 30,000 (v) If salaries expense for the year Rs. 5,000