Prepare the journal entries for ABX Pte Ltd for the following transactions for the month of May

July 2014 PaperQuestion 1(a) Prepare the journal entries for ABX Pte Ltd for the following transactions for the month of May(include the date and description in your answer):(i) On 2 May, Jutson Engineering Services invested in the company by supplying a piece ofequipment worth $50,000 to the company. ABX in turn issued its ordinary shares to Jutson.(ii) On 4 May, the company bought $800 worth of office supplies. 20% was paid by cash andthe rest on account.(iii) On 8 May, ABX performed a service for a customer and billed the customer $3,000 for theservice performed.(iv) On 9 May, the company received news that one of its customers was bankrupted and theamount of $230 owing to the company will not be able to be collected. The companyadopted the allowance method and sufficient allowance had already been providedpreviously.(v) On 29 May, the company received an invoice for utilities amounting to $5,780. (11 marks)(b) The adjusted trial balance of Delphi Enterprise Pte Ltd was given below:Delphi Enterprise Pte LtdAdjusted Trial Balance31 December 20X9Account TitleDebitCredit$$Cash79,700Accounts receivable73,200Inventory54,500Purchase82,000Prepaid insurance4,500Building800,000Machinery260,000Accumulated depreciation – machinery142,000Short term notes payable32,000Interest payable2,080Unearned revenue50,800Share capital900,000Retained earnings31,000Revenue363,800Revaluation reserved40,000Salaries expense70,000Supplies expense3,100Insurance expense3,500Depreciation expense41,000Transport expense36,000Interest expense1,680Utilities expense5,050Telephone expenseIncome tax expenseUtilities payable35,80012,0001,562,0303501,562,030Required:Delphi Enterprise Pte Ltd uses the periodic system. A stock count at the end of the year revealed thatthe inventory was $10,000. Prepare the Statement of Financial Position as at 31 December 20X9 forDelphi Enterprise Pte Ltd from the given adjusted trial balance. (10 marks)(c) Explain why going concern is an important assumption for the preparation of financial statements.(4 marks)