Raven Fire Systems, established in 2000, sells a range of high-quality fire alarm systems. The financial year of the firm ends on 31 March.

Account $

Accounts Payable- $20,800; Accounts Receivable-$14,200; Advertising expens-$39,000 ;Accumulated depreciation-Furniture & Fittings-$6,800;Capital, Ann-$69,000; Cash at Bank-$44,300; Commission income-33,300; Cost of good sold-94,000; Drawings, Ann -$6,900; Furniture & fittings-$22,100; Inventories-$57,000; Load from UOB-$45,000; Slaries expense-$56,000; Sales revenue-$199,700; Sales returns-$41,100

All accounts in the ledger have normal balances.

Additional information for year-end adjustments is as follows:

1. Sales revenue as of 31 March 2021 included $9,700 from a client who made an advance payment for goods to be delivered in May 2021.

2. One of the debtors owing $4,200 was declared bankrupt on 31 March 2021.

3. Salaries due and unpaid at year-end amounted to $2,000.

4. Advertising expense as at 31 March 2021 included $9,000 paid to the advertising agency for a promotional event in June 2021.
5. The firm earns a 1.5% commission income from some suppliers on the products sold. The commission earned each month is received on the 15^th of the following month. For March 2021, the commission based on sales of $15,000 has not been recorded in the books.
6. Depreciation of furniture of $1,200 is to be provided for.Required:
7. Prepare general journal entries for the necessary adjustments as at 31 March 2021. Narrations are not required.  
8. Prepare the trial balance as at 31 March 2021, incorporating all adjustments. Show all workings.
9. Prepare the Profit & Loss Statement for the year ended 31 March 2021
10. Prepare the Balance Sheet as at 31 March 2021

Answer rating: 100% (QA)

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