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UNIVERSE is a toy store. The following transactions took place during $2021$ financial

year, ended $31$ December $2022$:

UNIVERSE was launched in January $2022$ through injection of KGS $5,000,000$ and $1-$floor

building of the value of KGS $3,000,000.$

The store incurred KGS $100,000$ expenses for painting and repair works, which were classified as

Other expenses. $50\%$ of the amount were paid as of $31$ December $2022.$

The store purchased shelves and other furniture for the amount of KGS $300,000.$ The amount was

paid in full.

Salary expenses for $2$ sales officers and $1$ cleaning lady comprised KGS $80,000$ per month. All $3$

workers worked for $11$ months during $2022.$ As of $31$ December, salaries to sales specialists were

paid out in full, salary to the cleaning lady was payable in the amount of KGS $10,000.$ Salary

expenses are classified as Administrative expenses.

Electricity expense was charged in the amount of KGS $1,000$ per month. Every invoice is payable

in the following month. Electricity expense is classified as Administrative expenses.

UNIVERSE purchased $5,000$ toys during the year for KGS $1,000,000,40\%$ for cash and $60\%$ on

credit.

The store sold $4,500$ toys during the year for KGS $2,250,000,$ out of which $70\%$ were sold on cash

and $30\%$ on credit.

Distribution expenses in the amount of KGS $200,000$ were incurred for delivering goods to its

customers. All expenses were paid in cash.

Discounts in the amount of KGS $50,000$ were allowed to customers for paying within $10$ days

period.

When performing analysis of outstanding debts from customers, it was identified that $3$ customers

with the total outstanding amount of KGS $30,000$ are experiencing difficulties. Also, it was decided

to provide general allowance for doubtful accounts in the amount of $3\%$ from outstanding

accounts receivable balance. Adjustment to reflect the effect on accounts receivable balance is

required.

Year$-$end adjustments:

Electricity expense for the last two months was increased from KGS $1,000$ to KGS $1,500.$ Please

provide correcting journal entries.

Please update Retained Earnings account and find Net Profit value.

Income tax expense to be recognized for the reporting year is $10,000KGS.$ The amount is

payable before $31$ March $2023.$

Contra between payables and receivables must be made for the amount of KGS $50,000.$

Required:

Provide all relevant journal entries based on the above transactions.

Update and close relevant ledger accounts.

Extract trial balance based on the above information for the year ending $31$ December $2022.$

Provide year$-$end adjustments as necessary.

Complete tables for SoFP and SoP&L$.$

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