0 500 The accountant for Mollie's Market, Inc. prepared the following trial balance at August 31, 2020, after one month of operations: Debit Credit Cash $ 20,900 Accounts Receivable 4,400 Supplies 4.800 Unexpired Insurance 2,000 Office Equipment. 18,000 Account payable... 3,300 Unearned Consulting Fees.. 3,200 Note payable.. 12.000 Capital Stock.. 15,500 Retained Earnings, August 1, 2020 Dividends 3.200 Consulting Fees Eamed. 31,000 Salaries Expense. 7,600 Utilities Expense. 1,600 Rent Expense 2,000 Supplies Expense. S65.000 $65.000 Additional information items: a Consulting services rendered to a client in August, not yet billed or recorded, $2,300. b Unexpired insurance was purchased for 5 months. Portion of the insurance policy expired in August C Income taxes expense for August amounted to $2,400. D The office equipment has a life of 5 years. E. Office supplies on hand August 31, amounted to $3,600 F. Salaries earned by employees during the month of August but not yet recorded amounted to $2,100 G. On August 1, 2020 the company borrowed money from the bank by signing a note for $12,000, 10% and 24 months (2 years) note payable. The entire note plus 24 months interest is due on July 31, 2022. H. $1,200 of the Unearned consulting Fees were earned during the month of August as the company performed consulting service for clients that had made payment in advance. Instructions: (a) Prepare adjusting entries for A through H. (b) Prepare the company's adjusting trail balance dated August 31, 2019 (C) Show the effect of transactions that is (Increase -1, Decrease - D and Not Effect = NE) for A through H after the adjustment have been made using the following format Income Statement Balance sheet Revenue - Expenses - Net Income Asset = Liability + Owners Equity (D) Prepare the income Statement (E) Close All Temporary Accounts by journalizing and posting (F) Prepare the statement of Retained Earnings (G) Prepare the post closing Trail Balance Evaluate: Profitability & Liquidity