1. Following is the unadjusted Trail balance as on 31.03.

2020

Store Equipment 20000

Accumulated depreciation, 2000
store equipment
Merchandise inventory 17130
Office supplies inventory 3690
Trade receivable 4900
Cash 2100
Prepaid store rent 3600
Prepaid Insurance 600
Trade payable 3900
Share Capital 10000
Retained Earning 2320
Sales 95160
Sales Return and allowances 430
Sales discount 1280
Purchase 43750
Purchase return and 90
allowances
Purchase discount 1440
Freight In 3100
Office salary expenses 1100
Sales salary expenses 4300
Advertisement expenses 4000
Interest expenses 1000
Telephone expenses 320
Store rent expenses 2750
Delivery expenses 860
Total 114910 114910

Prepare the statement of profit and loss and Balance sheet after considering following
adjustment

a. Estimated depreciation on store equipment, 1000

b. Ending merchandise inventory, 23180
c. Outstanding rent 250