Sky Fly Limited is a drone camera hiring company provides drone camera hire services to its clients. All clients pay in advance when they book for the services. The adjusting entries are performed on a monthly basis. Closing entries are performed annually on 31 December. Below is the Company's unadjusted trial balance as at 31 December 2016: Sky Fly Limited Unadjusted Trial Balance 31 December 2016 Credit (9) Debit (S) 326,950 72,000 13,250 110,500 389,000 142,100 83,500 103,750 113,500 150,000 Cash Prepaid rent Prepaid insurance Supplies Equipment Accumulated depreciation equipment Accounts payable Unearned service fees Income tax payable Ordinary share, S2 par, 100,000 authorized, 75,000 shares issued and 62,500 shares outstanding Retained eamings Treasury shares (at cost) Service fees revenue Salaries expense Rent expense Insurance expense Supplies expense Utilities expense Advertising expense Depreciation expense: equipment Income tax expense Total 159,700 31.250 979,790 358,850 84,000 29,150 130,000 34,550 12,850 26,490 113,500 1,732,340 1,732,340 The following transactions/adjusting entries have not yet been recorded/adjusted on 31 December 2016: (1) Supplies on hand on 31 December 2016 were $98,000. (2) On 1 September 2016, the Company renewed the office tenancy agreement and paid a 12- month rental (3) An unrecorded and unpaid salary of $15,500 was earned by the employees for December. (4) A cash receipt of $23,000 originally recorded as unearned service fees had been earned as at 31 December 2016 (5) On 30 December 2016, the Company sold all the treasury shares for $37,500 for cash. (6) On 31 December 2016, after the sale of treasury shares, the Company declared a cash dividend of $0.2 per share to all the shareholders. All dividends will be paid next year. Required: (a) Prepare the necessary journal entries at 31 December 2016 so as to bring the financial records up-to-date. Explanation is NOT required. If no adjustment is required, just state "No entry" and no explanation is required. (13 marks) (b) Calculate the difference in monthly rental expense after the renewal of office tenancy agreement in September (assume the rent expense solely represented the office rental). (1 mark) (c) Prepare the shareholders' equity section of the Statement of Financial Position for Sky Fly Limited as at 31 December 2016. (4 marks)