Neco 2022 Financial Accounting Question 4

Beta Services Ltd maintains the following ledger balances at the end of March 2022 (before adjustments): Cash – Dr ₦80,000 Accounts Receivable – Dr ₦45,000 Supplies – Dr ₦12,000 Equipment – Dr ₦150,000 Accumulated Depreciation – Equipment – Cr ₦30,000 Accounts Payable – Cr ₦40,000 Capital – Cr ₦200,000 Drawings – Dr ₦10,000 Service Revenue – Cr ₦120,000 Salaries Expense – Dr ₦25,000 Rent Expense – Dr ₦15,000 Additional information for adjustments: 1. Supplies on hand at 31 March amount to ₦4,000. 2. Equipment depreciation for the month is ₦5,000. 3. One customer paid ₦20,000 of their account receivable during March. 4. An outstanding electricity bill of ₦3,000 is identified (expense not yet recorded). 5. The business incurred ₦2,000 of prepaid insurance that will be recorded as an asset. Answer the following questions: