The December 31, 2021, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31 is the company?s year-end reporting date.

The following year-end adjusting entries are required:a. Depreciation expense for the year on the equipment is $10,000.b. Salaries at year-end should be accrued in the amount of $4,000.

Required:1. Prepare and complete a worksheet similar to Illustration 2A?1.2. Prepare an income statement for 2021 and a balance sheet as of December 31, 2021.

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Account Title Debits Credits Cash 20,000 Accounts receivable 35,000 Prepaid rent 5,000 50,000 100,000 Inventory Equipment Accumulated depreciation Accounts payable 30,000 25,000 Salaries payable -0- Common stock 100,000 Retained earnings 29,000 Sales revenue 323,000 Cost of goods sold Salaries expense 180,000 71,000 Rent expense 30,000 -0- Depreciation expense Utilities expense 12,000 Advertising expense 4,000 Totals 507,000 507,000