Question 1 Steven Loh started High5 Training Pte Ltd in 2021. The company provides motivational courses for the small and medium enterprises in Singapore. All its revenue is derived from fees earned from the courses that it has conducted. Steven approached you for help to finalise the company's accounts for the year ending 31 Dec 2022. Below is the unadjusted trial balance. Account title Debit (S) Credit (S) Share capital (100,000 shares at $1.00 each) 100,000 Retained earnings, 31 Dec 2021 13,810 Computers at cost 36,000 Office equipment at cost 20,000 Accumulated depreciation - Computers -Office equipment Prepaid insurance Supplies Rental expense Insurance expense Revenue 8,000 8,000 6,000 61,730 48,000 13,500 239,380 General expenses 10,180 Wages and salaries 50,700 Supplies expense 11,910 Repair and maintenance expense 5,050 Interest and bank charges 440 Allowance for doubtful debts 900 Accounts receivable 65,300 Accounts payable 12,500 Bank 53,780 382,590 382,590 You are given the following additional information none of which has been taken into consideration in arriving at the figures shown in the trial balance above. (i) On 1 July, Steven Loh sold a computer that costs $1,800, with accumulated depreciation of $400 as at 31 Dec 2021 for cash of $800. He deposited the cash into his personal bank account but forgot to inform the accounts clerk of this transaction. Both the cost and the accumulated depreciation of the computer sold were included in the amount shown for computers at cost and the accumulated depreciation for computers in the unadjusted trial balance above. The residual value of the computer sold was originally estimated to be $200. (ii) (iii) (iv) (v) (vi) On 30 November, the directors unanimously vote to pay a cash dividend of $0.02 per share on 31 January 2023 to its shareholders on record on 15 December. On 16 December, the company was notified that one of its clients who owed $1,800 has gone bankrupt. The company uses the allowance method to account for bad debts. The 31 Dec 2022 inventory count of supplies showed $22,300 was still available. Nine months have expired since the 12-month insurance was paid in advance. No depreciation has been charged for the year ended 31 Dec 2022. The company depreciates non-current assets as follows: Computers at cost - straight line over 4 years. The residual value of the computers reflected in the unadjusted trial balance was estimated to be $4,000. Office equipment - the double declining balance method. Office equipment are assumed to have useful life of 5 years and residual value at 10% of the cost. (vii) On 31 December, the amount of paid in advance by clients for courses to be conducted was $9,250. However, these have been included in revenue in the unadjusted Trial Balance. (viii) It was estimated that 5% of outstanding accounts receivable on 31 December were uncollectible. Required: Analyse the above information and prepare all necessary adjusting entries. Show narrations and all workings.