QUESTION 1 (24 marks) Joyful Party Club prepares monthly financial statements. On 31 January, the Club's accountant made adjusting entries to record: (i) Amount owed to Joyful Party Club for January by a customer for a party organized in January was not paid and will be settled in February. (ii) Cost of supplies used in January. (When purchased, the cost of supplies is debited to an asset account) (iii) Earning of a portion of annual membership fees which had been collected in advance. (When customers subscribe annual memberships, an Unearned Revenue account is credited.) (iv) Accrued interest expense for January owed on a bank loan obtained on 2 January. No interest expenses had yet been recorded. You are required to: Indicate the effect of each of these adjusting entries on the major elements of the company's financial statements - that is, on revenue, expense, profit, asset, liability and owners' equity. Organize your answer in tabular form, using the column headings shown below and the symbols + for increase, - for decrease and NE for no effect. Income Statement Adjusting Revenue Expense Profit Entry (i) (ii) (iii) (iv) Statement of Financial Position Asset Liability Owners' Equity

Joyful Party Club prepares monthly financial statements. On 31 January, the Club's accountant made adjusting entries to record: (i) Amount owed to Joyful Party Club for January by a customer for a party organized in January was not paid and will be settled in February. (ii) Cost of supplies used in January. (When purchased, the cost of supplies is debited to an asset account) (iii) Earning of a portion of annual membership fees which had been collected in advance. (When customers subscribe annual memberships, an Unearned Revenue account is credited.) (iv) Accrued interest expense for January owed on a bank loan obtained on 2 January. No interest expenses had yet been recorded. You are required to: Indicate the effect of each of these adjusting entries on the major elements of the company's financial statements - that is, on revenue, expense, profit, asset, liability and owners' equity. Organize your answer in tabular form, using the column headings shown below and the symbols + for increase, - for decrease and NE for no effect. Joyful Party Club prepares monthly financial statements. On 31 January, the Club's accountant made adjusting entries to record: (i) Amount owed to Joyful Party Club for January by a customer for a party organized in January was not paid and will be settled in February. (ii) Cost of supplies used in January. (When purchased, the cost of supplies is debited to an asset account) (iii) Earning of a portion of annual membership fees which had been collected in advance. (When customers subscribe annual memberships, an Unearned Revenue account is credited.) (iv) Accrued interest expense for January owed on a bank loan obtained on 2 January. No interest expenses had yet been recorded. You are required to: Indicate the effect of each of these adjusting entries on the major elements of the company's financial statements - that is, on revenue, expense, profit, asset, liability and owners' equity. Organize your answer in tabular form, using the column headings shown below and the symbols + for increase, - for decrease and NE for no effect