During your first year of university studies, you noticed that as Valentine's Day approached your friends were dating more with the hope of finding someone special. Now in your second year of studies, you decided to cash in on the increase in dating around holidays such as Valentine's Day and on September 1, 2020 you started an online dating service for university students. It is now February 5, 2021 and you have prepared the following unadjusted trial balance for Meet Your Mate Inc. (MYMI): Meet Your Mate Inc. Unadjusted Trial Balance January 31, 2021 + Cr. Dr. $17,550 1,236 948 2,700 6,500 Account Cash Accounts receivable Supplies Prepaid rent Computers Accumulated depreciation - computers Accounts payable Unearned revenue Long term debt Common shares Retained earnings Revenue Operating expenses Depreciation expense Interest expense $1,042 4,390 7,111 10,000 1,000 0 22,045 15,545 1,042 67 $45,588 $45.588 You have also gathered following additional information: 1. 2. 3. On January 1, 2021, MYMI paid its landlord for the space it rents for the first three months of 2021. The monthly rent is $900. The computers have a useful life of two years. In December 2020, MYMI received a number of deposits from university students hoping to use its services in 2021. During January 2021, MYMI earned $2,500 for the provision of online dating services to these students. According to MYMI's agreement with its bank, interest on the long term debt is charged at a rate of 2% per year. Interest for January 2021 was to be paid on 4. O Focus 5. February 1, 2021. In this morning's mail, you received bills from the companies which provide MYMl's utilities. The total amount owing for January 2021 utilities is $747 and it will be paid February 14, 2021. In early January 2021, you recorded adjusting entries up to and including December 31, 2020. Before preparing the financial statements as at and for the month ended January 31, 2021, you decide to prepare the January 2021 adjusting entries (in good form) that are necessary as a result of the additional information above. You recall your BUS 285 instructor advising that it may be necessary to add to the accounts already in the unadjusted trial balance. You plan to round all amounts to the nearest dollar and provide detailed supporting calculations so it is easier to review the adjusting entries at a later date. Question 2 continued Assume that it is now September 1, 2021 and MYMI has completed its first year in business. The following is an alphabetical list of accounts and balances as at August 31, 2021: Balance $8,613 2,470 3,250 Account Interest expense Long term debt Operating expenses Balance $200 10,000 27,243 Account Accounts payable Accounts receivable Accumulated depreciation -computers Accumulated depreciation -furniture Depreciation expense Cash 117 Prepaid rent 900 3,367 10,800 0 13,452 Common shares Computers Dividends Furniture Income tax expense 51,108 3,072 Rent expense Retained earnings, September 1, 2020 Revenue Supplies Unearned revenue Utilities expense 1,000 6,500 250 800 80 4,010 8,964 You have decided to prepare MYMI's financial statements. You have determined that the furniture has a four-year useful life, $2,000 of the long term debt is due in the next year and all account balances are normal. You have decided to prepare only a CLASSIFIED balance sheet and an income statement (in good form). It is NOT necessary to prepare the remaining financial statements normally included in a complete set of financial statements. Focus