QUESTION 1 (25 MARKS) Marina Business Consultancies (MBC) was established in Kuala Lumpur on 1 January 2019. The business provides business and tax consultancies for small medium enterprises. With the capital beginning RM350,000, MBC managed to establish department such as business administration, business development, corporate communication, marketing as well as accounting and finance. The accounting and finance department run with the capacity of two staff, (Adam and Jessica) to handle about business accounting and reporting related matters. At the end of the first-year operations, MBC required to accurately report revenues earned and expenses incurred during that time period. It required the adjusting process so that the financial statement will be accurately reported. MC had the following unadjusted trial balance. Marina Business Consultancies Unadjusted Trial Balance as at 31st December 2019 Account Name Debit (RM) Credit (RM) Cash 159,400 Accounts Receivable 145,832 Prepaid Insurance 13,600 Supplies 62,500 Furniture and fittings 103,500 Motor Vehicles 204,000 Accounts Payable 102,434 Service Revenue 238,300 Capital 350,000 Short Term Loan 137,200 Unearned Revenue 15,000 Drawings 21,000 Stationeries and Printing 636 Expense Interest Expense 8,425 Salaries Expense 80,000 Utilities Expense 3,600 Advertising Expense 5,441 Rent Expense 35,000 842,934 842,934 Additional information: i. Insurance expense at the rate of RM850 per month. ii. RM3,600 of supplies still on hand at 31st December 2019. iii. Yearly depreciation on the non current assets as below: furniture and fittings, RM5,175 motor vehicles, RM20,400 iv. RM10,000 from the unearned revenue still unearned. v. Interest expense RM5,295 still payable by end of the year Required: Assume that you are Adam, you are required to: a) Prepare an adjusted trial balance as at 31st December 2019. (10 marks) (CLO3:PLO4/PL07:04) b) Prepare the following: i) Statement of Profit or Loss for the year ended 315 December 2019. ( 5 marks) (CLO3:PLO4/PL07:04) ii) Statement of Owner's Equity for the year ended 31st December 2019 (2 marks) (CLO3:PL04/PL07:C4) Statement of Financial Position as at 31st December 2019 (6 marks) (CLO3:PLO4/PL07:04) iii) c) Explain to MBC management about accounting principles applied for depreciation. (2 marks) (CLO3:PL04/PL07:04)