The following information contained the financial accounts of Matrix Accounting Firm for the accounting year ended 31st December 2020:

Required:

1. Prepare a fully classified Balance Sheet for Matrix Accounting Firm 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)

b.Discuss and elaborate how Unearned professional fees meets the definition and recognition criteria according to the Conceptual Framework to allow it to be recorded in the Balance Sheet.

Account description	Amount $
Professional fee earned	2,250,000
Corporate secretariat fee earned	75,000
Rental of office	100,000
Staff salaries	470,000
Air conditioner servicing fee	22,000
Cash at bank	30,000
Accounts payable	50,000
Office expenses	65,000
Mainframe server	800,000
Loss on disposal of assets	10,500
Accrued expenses	30,000
Prepaid expenses	28,500
Rent deposit paid	88,000
Accumulated depreciation of Mainframe server	80,000
Inventory	37,500
Owners equity	?
Unearned professional fees	80,000
Fees overdue from clients	55,000
Bank loan	450,000
999 year leasehold property	500,000