Question:

The following shows the Trial Balance of Regent Hotel for the year ended August 2020:

Regent Hotel
Trial Balance August 31, 2020
Account Title	Balance
	Debit (RM)	Credit (RM)
Service Revenue		278,000
Salaries Expenses	120,000
Depreciation ExpensesFurniture	50,000
Utility Expenses	20,000
Advertising Expenses	130,000
Administration Expenses	28,000
Insurance Expenses	3,000
Bank	80,000
Debtors	52,000
Prepaid Insurance	33,000
Building	1,000,000
Furniture	500,000
Accumulated DepreciationFurniture		150,000
Accounts Payable		16,000
Advertising Payable		2,000
Unearned Revenue		90,000
Loan		500,000
Regent, Capital		1,000,000
Regent, Withdrawals	20,000
Total	RM2,036,000	RM2,036,000

Required:

1) Prepare Regent Hotel Income Statement and Statement of Owners Equity for the year ended August 31, 2020. (Choose statement format of Income Statement).

2) Using the Income statement of Regent Hotel, using three strategies to improve the profitability.