1 The unadjusted trial balance and the adjustment data for Robin Training Institute are given below along with adjusting entry information. Robin Training Institute Unadjusted Trial Balance as at 31 August 2021 RM RM Cash 58,000 Accounts receivable 59,000 Prepaid insurance 12,000 Equipment 8,000 Accumulated depreciation for equipment 2,000 Buildings 57,500 Accumulated depreciation for buildings 17,500 Land 55,000 Uneamed rent 16,000 Bank loan 50,000 Capital 115,600 Fees earned Wages Utilities 97,400 32,000 8,000 Repairs and maintenance Interest expense Total Additional information: 5,000 4,000 298,500 298,500 i. The Prepaid Insurance account consists of a payment for one year policy. An analysis of the insurance invoice indicates that one half of the policy has expired by the end of the 31 August year-end. ii. A cash payment for space sublet for 8 months was received on 1 March and was credited to Unearned Rent. iii. Accrued interest expense on the loan of RM1,000 has been incurred but not paid. Required: If these adjustments are not recorded, a. Show and explain the impact on net income with calculation without the adjustments and with the adjustments. (11 marks) b. Explain the accounting principles that are being violated if the adjustments are not made. (4 marks)