Neco Model Questions Vol1 2024 Financial Accounting Question 34

The unadjusted trial balance of ABC Enterprises at 31 December is shown below (all figures in \(\text{₦}\)): | Account | Debit | Credit | |---|---|---| | Cash | 80,000 | - | | Accounts Receivable | 45,000 | - | | Prepaid Rent | 12,000 | - | | Equipment | 120,000 | - | | Accumulated Depreciation - Equipment | - | 30,000 | | Accounts Payable | - | 25,000 | | Interest Payable | - | 2,000 | | Capital | - | 150,000 | | Drawings | 10,000 | - | | Service Revenue | - | 100,000 | | Salaries Expense | 40,000 | - | The following adjusting entries are required: 1. Rent expense for the year is \(\text{₦}9,000\); the remaining prepaid rent is \(\text{₦}3,000\). 2. Wages of \(\text{₦}12,000\) have been incurred but not yet paid. 3. Depreciation on equipment is 10 % of its cost per year. Prepare the adjusted trial balance and state the total of debit balances and the total of credit balances after these adjustments.