QUESTION 1 (25 MARKS: 60 MINUTES) Ringo operated a management and accounting services in Taiping. He is the sole owner of the firm, Maxwell Trail Services (MTS) and has several regular customers since its inception in 2016. The following is the business's unadjusted trial balance as of 31 December 2020. Maxwell Trail Services Unadjusted Trial Balance As of 31 December 2020 RM RM Cash 73,750 Accounts receivable 124,000 Supplies 4,900 Prepaid Insurance 2,750 Office equipment 62,500 Accumulated depreciation - Office equipment 15,625 Accounts payable 18,000 Unearned revenue 1,875 Ringo, capital Ringo, withdrawals Revenue Salaries expenses Rent expenses 87,500 10,000 250,000 66,250 24,375 1,800 2,675 373,000 373,000 Office Expenses Utilities expense Additional information: 1. 2. 3. 4. 5. 6. 7. 8. Fees received in advance from clients RM15,000, which were recorded as revenue. Services performed for clients that were not recorded by 31 December, RM12,250. Depreciation of office equipment for the period is RM2,375. Insurance expired during the year RM1,200 Salaries accrued at the end of period is RM12,400. Paid RM13,800 for 6-month office rental until 30 June 2021. Revenue earned but not billed is RM17,400. Purchased a new 4x4 vehicle for RM54,500. MTS paid RM4,500 as a deposit while the balance is using a bank loan arranged by the seller. 9. Ringo took out RM5,000 to spend on a personal retreat at a 5-star hotel in Langkawi. REQUIRED: (a) Prepare the relevant adjusting entries for the above transactions (omit explanations). (5 Marks) (b) Post the adjusting entries in (a) above to their respective ledger accounts. (5 Marks) (c) Prepare the Adjusted Trial Balance as of 31 December 2020. (6 Marks) (d) Prepare the following statements for Maxwell Trail Services: (i) Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 December 2020. (3 Marks) (ii) Statement of Owner's Equity for the year ended 31 December 2020. (2 Marks) (iii) Statement of Financial Position as of 31 December 2020. (4 Marks)