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Q-1- Gream Lee opened a company on Sept 1, 2023. On Sept 30, 2023 the trial balance is as follows: Analysis reveals additional information for the month: 1. Prepaid insurance is the cost of a 12-month insurance policy that started at Sept1,2023. 2. Supplies costing $225 were in hand on Sept 30,2023 . 3. The equipment is expected to have a useful life of four years. 4. The note payable is dated Sept 1,2023 . It is a six-month, 4% with interest payable on the first of each month staring October 1,2023. 5. Seven customers paid for the company's six-month service package costing $600, at the beginning of the month i.e. Sept 1,2023 . These customers were served for the month of September. 6. Lawn services performed for other customers but not billed or recorded at September30,2023 total $1500. Using the above information: a) Prepare Adjusted Trial Balance as on Sept 30,2023. b) Prepare an income statement, statement of owner's equity and Balance Sheet. [5 marks] Q-2- On June 9, 2022, Blue Ribbon Company purchased manufacturing equipment at a cost of $345,000. Blue Ribbon estimated that the equipment will produce 600,000 units over its five-year useful life, and have a residual value of $15,000. The company has a December 31 fiscal year end and has a policy of recording a half-year's depreciation in the year of acquisition. Instructions a. Calculate depreciation under the straight-line method for 2022 and 2023. b. Calculate the depreciation expense under the double diminishing-balance method for 2022 and 2023. c. In this situation, what factors should the company consider in determining which depreciation method it should use? [5 marks]

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