Section C long Answer Questions (Answer only ONE) (1 x 6 marks = 6 marks) Question 7: Khalid started his own consulting firm, Khalid Company, on May1, 2020. The trial balance at May 31 is shown below. Khalid COMPANY Trial Balance Credit May 31, 2020 Debit Cash 7,150 Account receivable 6,000 Supplies 2,000 Prepaid insurance 3,000 Equipment 15,000 Account payable Unearned service revenue Capital Service revenue Financial Accounting (1) BSORIO4 - Non Real Test 2 4,500 4,000 21,750 7.900 Page 5 of 10 Salary and wages expenses Repairs expenses Total 4,000 1,000 38,150 38.150 Other data: 1. OMR 2,800 of unearned service revenue has been earned at the end of the month 2. The equipment has a 5-year life with no salvage value. It is being depreciated at OMR 250 per month for 60 months. 3. A utility bill for OMR 150 has not been recorded and will not be paid until next month. 4. The insurance policy is for a year. 5. Supplies on hand at May 31 are OMR 750. 6. Salaries of OMR 1.900 are accrued at May 31. Instructions: (a) Prepare the adjusting entries for the month of May. (b) Post the adjusting entries to the ledger accounts. Solution: a. 129 Solution: a. Date Account name Dr Cr b. Date Debit Credit b. Date Debit Credit Pag Financial Accounting (1) BSDR1004 - Non Real Test 2 End balance Date Debit Credit End balance Date Debit Credit End balance D