Question 2 (48 marks) The following is the trial balance for Sunny Limited as at 30 September 2020: Sunny Limited Trial Balance as at 30 September 2020 Dr Cr Supplies 14,000 Accounts receivable 36,000 Prepaid rent 84,000 Cash 28,000 Equipment 120,000 Accumulated depreciation - equipment 15,000 Accounts payable 33,000 Utilities payable 5,000 Share capital 120,000 Retained earnings 80,000 Dividends 4,000 Service revenue 247,000 Salary expense 160,000 Rent expense 42,000 Utilities expense 9,000 Supplies expense 3,000 500,000 500,000 Additional information: (1) Accrued service revenue for September, $3,000. (2) The equipment has an expected useful life of 4 years. Depreciation had not been provided for the equipment for the month of September. (3) Salary of $3,500 for a part-time staff for the month of September will be paid in October Required: (a) Prepare the adjusting journal entries for the additional information (1) to (3). (Narration is NOT required.) (6 marks) (b) Describe the effects (increase, decrease or no effect) in the accounting equation for the additional information (1) to (3) above. Use the format as shown below for your answers. (6 marks) Item Assets Labilities + Shareholders' equity Increase Decrease No effect (1) (2) (3) c.g. (c) Prepare the income statement for the month ended 30 September 2020. (10 marks) (d) Prepare the statement of changes in equity for the month ended 30 September 2020. (6 marks) (e) Prepare the statement of financial position as at 30 September 200. (20 marks) [Total marks for Question 2: 48 marks]