BHMH2101 2021/2022S3 Assignment 1 Total Marks: 100 marks Question 1 Part I (70 marks) Metalla Travel is a tourism company arranging local tours for the staff of corporate clients. Some companies pay in advance for the trips; others are billed after services have been provided. Advance payments are credited to the Unearned Service Revenue account. Adjusting entries are normally performed on a monthly basis. Closing entries are performed annually on 31 December. Below is the Company's unadjusted trial balance as at 31 December, 2021. Metalla Travel Unadjusted Trial Balance As at 31 December 2021 Account Title Cash Accounts receivable Prepaid advertising Prepaid rent Supplies Tour coaches Accumulated depreciation: tour coaches Accounts payable Unearned service revenue Notes payable (7 months; 5% interest p.a.; due on April 30, 2021) Income tax payable Share capital (5,000 Ordinary Shares issued) Retained earnings Dividends Service revenue Depreciation expense: tour coaches Supplies expense Utilities expense Salaries expense Rent expense Advertising expense Interest expense Income tax expenses TOTAL Page 2 Debit $ Credit $ 71,000 24,000 6,000 16,000 900 120,000 48,000 16,000 11,000 30,000 4,900 50,000 16,000 1,000 199,700 22,000 1,100 600 14,725 88,000 5000 375 4,900 375,600 375,600