Page 2 BHMH2101 2022/23 S1 Assignment 1 The following items are for adjusting entries if needed: (1) There was a $1,600 cash purchase of supplies on 30 December 2022 not recorded in the book. (2) The staff received salaries in advance. All prepaid salaries were earned after the last concert was held on 31 December 2022. (3) L&S equipment provides lighting and sound for the concerts and depreciates by straight-line method with a useful life of 5 years. Adjusting entries were only made up to end of September. (4) Chill Time recorded receipt of $65,000 previously paid by the singer Terror in advance for a concert to be held in December. On 31 December 2022, the concert was held successfully. (5) Accrued but unbilled fees earned during December 2022 amounted to $17,000. (6) On 28 December 2022, Chill Time signed an agreement with the rapper Byson B to hold three concerts from 1 to 3 January 2023 for service fees of $95,000. (7) On 31 October 2022, Chill Time paid and recorded 2 months' advertising fees in advance to the MTR Co. The advertisement will appear in the MTR station in December 2022 and next January. (8) On 1 November 2022, Chill Time recorded three months' rent paid in advance covering up to end of January 2023. (9) On 1 April 2022, Chill Time signed a $150,000, 5% per annum, 8-month note payable and all the accrued interest adjusting were already recorded. The note and all interest due were paid by Chill Time on 1 December, but no entries were made on the payment. (10) On 31 December 2022, the Board of Directors declared to pay dividend 50.1 per share to its shareholders which to be paid out next month. (11) Income taxes expense for the entire year is estimated at $53,000 to be paid next year. Required: (a) Prepare the necessary adjusting journal entries on 31 December 2022. No explanation is required. Show all workings in your journal. Use the account titles given in the Trial Balance if the account is already open. If it does not require adjustment, state "No entry" and the name of the accounting principle applied. (23 marks) (b) Prepare the Income Statement for the year ended 31 December 2022, under the captions of Service Revenues, Expenses, Profit before taxes and Profit after taxes. (12 marks) (c) Prepare the Statement of Financial Position as at 31 December 2022, under the captions of Total Assets, Total Liabilities, Total Equity, Total Liabilities and Equity. (d) Prepare year-end closing entries. (20 marks) (15 marks) Page 3