A six-column table for Yan Consulting Company follows. The first two columns contain the unadjusted trial balance for the company as of December 31, 2018, and the last two columns contain the adjusted trial balance as of the same date.

Required

1. Analyze the differences between the unadjusted and adjusted trial balances to determine the eight adjustments that likely were made. Show the results of your analysis by inserting these adjustment amounts in the table?s two middle columns. Label each adjustment with a letter a through h and provide a short description of each.

2. Use the information in the adjusted trial balance to prepare this company?s (a) income statement and its statement of retained earnings for the year ended December 31, 2018 [Note: Retained earnings at December 31, 2017, was $76,200, and the current-year dividends were $20,000], and (b) the balance sheet as of December 31, 2018.

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Adjusted Trial Balanco Unadjusted Trial Balance Adjustments $ 45,000 $ 45,000 Cash 60,000 Accounts receivable 66,660 Ofico supplios 40,000 17,000 Prepaid insurance 8,200 3,600 Ofice equipment. 120,000 120,000 Accumulated depreciation- Office equip. $ 20,000 $ 30,000 Accounts payable 26,000 32,000 Interest payable . 2,150 Salaries payable 16.000 27,800 Unearned consuting fees 40,000 75,000 Long-term notes payable 75,000 Common stock.. Retained earnings.. 4,000 76,200 4,000 76,200 Dividends 20,000 20,000 Consulting fees eaned 234,600 253,460 Depraciation oxponso- Office equip. 10,000 Salaries expense 112,000 128,000 Interest expense 10,750 8,600 Insurance expense 4,600 Rent expense 20,000 20,000 Office supplies expense 23,000 Advertising expense 42,000 48,000 $475,800 $475,800 $516,610 $516,610 Totals..