The following information contained the financial accounts of Excellence Grade College for the accounting year ended 31st December 2020: 

Account description	Amount $
Tuition fee earned	2,000,000
Rental fee earned	50,000
Rental of premise	100,000
Staff salaries	500,000
Air conditioner servicing fee	24,000
Cash at bank	20,000
Accounts payable	20,000
Administrative expenses	30,000
IT equipment	300,000
Loss on disposal of assets	500
Accrued expenses	10,000
Prepaid expenses	8,500
Rent deposit paid	30,000
Accumulated depreciation of IT equipment	60,000
Inventory	7,500
Owner’s equity	?
Fee received in advance	35,000
Fees overdue from students	25,000
Bank loan	200,000
Freehold property	600,000

Required: 

1. Prepare a fully classified Balance Sheet for Excellence Grade College for the year ending 31st December 2020. Use the accounting equation to determine the value of Equity at the end of the year. (6 marks)
2. Discuss and elaborate how ‘Fees Received in Advance’ meets the definition and recognition criteria according to the Conceptual Framework to allow it to be recorded in the Balance Sheet. (4 marks)