The unadjusted T-accounts of Fidelity Sound Studio, at December 31, 20X2. and the related year-end adjustment data follow at the top of the next page. Adjustment data at December 31, 20X2:

a. Unearned service revenue earned dur- ing the year. $5,000.

b. Supplies on hand. $1,000. Required

c. Depreciation for the year, $9,000.

d. Accrued salary expense. $1,000.

e. Accrued service revenue, $2,000. 1. Enter the trial balance on a work sheet, and complete the work sheet. Key each adjusting entry by the letter corresponding to the data given. List all the accounts, including those with zero balances. Leave a blank line under Service Revenue. 2. Prepare the income statement, the statement of owner's equity, and the classified balance sheet in account format. 3. Journalize the adjusting and closing entries. 4. Did Fidelity Sound Studio have a good or a bad year during 20X2? Give the reason for your answer.