Q1: Bello Co. is an event organizer business. Bello was established in 2018. You are provided with the following financial statement with some missing values for the years 2018, 2019 and 2020. You are requested to complete those statements. In order to solve the question you have to start with 2018 statements and work forward to subsequent years. Remember that Bello was established in 2018, thus the beginning balance for retained earnings in 2018 is zero. (2 Marks) Bello Co. Income statement For the year ended December 31 20XX 2020 2019 2018 Revenues 100,000 ? 50,000 Expenses: Rent ? 58,500 ? Salaries 1,500 ? 1,500 ? 2,500 ? Net Income ? 20,000 ? Bello Co. Retained Earnings statement For the year ended December 31 20XX 2020 2019 2018 Beginning retained earnings ? ? 0 Plus: Net income ? 20,000 ? ? ? 12,500 Less: Dividends 15,000 ? ? Ending retained earnings 30,000 ? ? Bello Co. Balance Sheet As of December 31 20XX 2020 2019 2018 Assets: Cash ? 25,000 A/R ? 32,500 25,000 Building 90,000 90,000 90,000 Total Assets ? 144,500 ? Liabilities: A/P ? 500 1,000 Notes payable 5,000 ? ? Total Liabilities 5,500 15,500 ? Equity Common stock ? 114,000 Retained earnings ? ? 15,000 ? Total Equity ? ? 119,000 149,500 ? 150,000 Total Equity and Liabilities Q2: Come up with a scenario for a service business. Then, assume that this business made 5 transactions. Journalize those transactions. (2 Marks) Q3: In your own words, describe the meaning of Revenue Recognition Principle. (1 Mark)