Question 1 (20 Marks) ACE Corporation prepares monthly financial statements. Below are listed some selected accounts and their balances on the September 30 unadjusted trial balance before any adjustments have been made for the month of September. ACE CORPORATION Cash...... Supplies Prepaid insurance Equipment.......... Trial Balance September 30, 2022 Debit Credit $10,200 3,000 5,775 16,000 $ 0 1,940 1,200 7,700 18,925 6,360 1.150 $36,125 $36,125 Accumulated depreciation-Equipment.. Accounts payable. Deferred revenue Common shares.. Retained earnings.. Service revenue Salaries expense Total........ An analysis of the account balances provided the following additional information: 1. A physical count of supplies revealed $1,700 on hand on September 30 (part of the supplies were used) 2. The equipment was purchased on July 1st 2022 for $16,000 and has an estimated useful life of four years. 3. The $1,200 deferred revenue in the trial balance was due to customer paying for service that has not been performed yet. As of end of September 30, 2022, $700 worth of service have been performed. 4. Income tax of $1000 is owed. Instructions (a) (b) Using the above additional information, prepare the adjusting entries that should be made by ACE on September 30 (adjusting entries are made on a monthly basis). (8) Prepare an adjusted trial balance at September 30. (12) Question 1 (20 Marks) ACE Corporation prepares monthly financial statements. Below are listed some selected accounts and their balances on the September 30 unadjusted trial balance before any adjustments have been made for the month of September. ACE CORPORATION Cash...... Supplies Prepaid insurance Equipment.......... Trial Balance September 30, 2022 Debit Credit $10,200 3,000 5,775 16,000 $ 0 1,940 1,200 7,700 18,925 6,360 1.150 $36,125 $36,125 Accumulated depreciation-Equipment.. Accounts payable. Deferred revenue Common shares.. Retained earnings.. Service revenue Salaries expense Total........ An analysis of the account balances provided the following additional information: 1. A physical count of supplies revealed $1,700 on hand on September 30 (part of the supplies were used) 2. The equipment was purchased on July 1st 2022 for $16,000 and has an estimated useful life of four years. 3. The $1,200 deferred revenue in the trial balance was due to customer paying for service that has not been performed yet. As of end of September 30, 2022, $700 worth of service have been performed. 4. Income tax of $1000 is owed. Instructions (a) (b) Using the above additional information, prepare the adjusting entries that should be made by ACE on September 30 (adjusting entries are made on a monthly basis). (8) Prepare an adjusted trial balance at September 30. (12)