A six-column table for Daxu Consulting Company follows. The first two columns contain the unad¬ justed trial balance for the company as of December 31, 2005, and the last two columns contain the adjusted trial balance as of the same date.

Required Analysis Component I • 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 it at the bottom of the table.
Preparation Component 2. Use the information in the adjusted trial balance to prepare this company’s

(a) income statement and its statement of owner’s equity for the year ended December 31, 2005 (note: D. Chen, Capital at December 31, 2004, was $70,200, and the current-year withdrawals were $10,000), and

(b) the balance sheet as of December 31, 2005.

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Cashi Accounts receivable Office supplies Unadjusted Trial Balance Adjustments Adjusted Trial Balance $ 48,000 $ 48,000 70,000 76,660 30,000 7,000 13.200 150,000 8,600 150,000 Prepaid insurance Office equipment Accumulated depreciation- Office equip. Accounts payable $ 30,000 $ 40,000 36,000 42,000 Interest payable 0 1,600 Salaries payable 0 11.200 Unearned consulting fees 30,000 17,800 Long-term notes payable 80,000 80,000 D. Chen, Capital 70,200 70,200 D. Chen, Withdrawals 10,000 10,000 Consulting fees earned 264,000 282.860 Depreciation expense- Office equip. 0 10,000 Salaries expense 115,600 126,800 Interest expense 6,400 8,000 Insurance expense 0 4,600 Rent expense .. 24,000 24,000 Office supplies expense 0 23,000 Advertising expense 43,000 49,000 Totals $510,200 $510,200 $545,660 $545,660