BHMH2101 2020/21 $1 Assignment 1 Total Marks: 100 marks Question 1 (50 marks) Relax Hotel Company is engaged in providing hotel accommodation, venues for dining and functions and other hotel services. Adjusting entries are performed on a monthly basis. Closing entries are performed annually on December 31. All kinds of income of the Company are recorded in revenue earned account. Below is the Company's unadjusted trial balance at the year ended 31 December 2019. Relax Hotel Company Unadjusted Trial Balance 31 December 2019 Account Title Debit $ Credit $ Cash 181,500 Accounts receivable 420,700 Prepaid insurance 13,500 Hotel supplies 7,500 Hotel equipment 378,000 Accumulated depreciation: Hotel equipment 157,500 Land 500,000 Accounts payable 78,000 4% Notes payable 120,000 Unearned revenue 250,000 Interest payable 2,000 Income taxes payable 61,500 Dividends payable 20,000 Share capital ($2 per share) 450,000 Retained earnings 204,500 Dividends 20,000 Revenue earned 1,336,300 Salaries expense 629,000 Insurance expense 63,000 Rent expense 350,000 Depreciation expense : Hotel equipment 49,500 Hotel supplies expense 3,600 Interest expense 2,000 Income taxes expense 61,500 $2,679,800 $2,679,800 Page 2Required: (a) Prepare the necessary adjusting journal entries on 31 December 2019 to bring the financial records of Relax Hotel Company up-to-date. Use the account titles given in the Trial Balance where appropriate. Show your workings. Explanations are NOT required. If no adjusting entries are required, state "No entry" and name the accounting principle applied. (20 marks) (h) Prepare the ome statement for the year ended 31 December 2019, showing breakdown(4) The Company purchased medical insurance policy for the employees on 1 February 2019. The insurance premium is paid in advance for three months on 1 February, 1 May, 1 August and 1 November