Total Marks: 100 marks Question 1 (100 marks) Pigeon Company is engaged in organizing playgroup programs for children. The company adjus its accounts monthly and prepares closing entries annually on 31 December. The following is t unadjusted trial balance dated 31 December 2020: Debit (S) Credit (S) Cash 424,540 Accounts Receivable 353,750 Supplies 12,400 Prepaid Rent 27,000 Land 1,952,000 Equipment 1,440,000 Accumulated Depreciation: Equipment 435,000 6% 3-year Notes Payable (Due on 31 December, 2022) 500,000 Accounts Payable 200,430 Income Taxes Payable 36,220 Unearned Service Revenue 82,500 Share Capital (@$2 per share) 2,000,000 Retained Earnings 322,390 Service Revenue Earned 2,950,300 Supplies Expense 98,250 Depreciation Expense: Equipment 88,000 Salaries Expense 657,000 Advertising Expense 40,350 Interest Expense 22,500 Insurance Expense 45,000 Rent Expense 1,304,050 Income Taxes Expense 62,000 TOTAL 6,526,840 6,526,840 Information on adjusting entries: (6) Interest on 6% 3-year notes payable of $500,000 is payable at the beginning of next quarter (i.e. the interest payments were paid on 1 April, 1 July and 1 October during the year). No interest adjusting entries has been made after the last payment