1. Make adjusting entries in the journal (rounding to the nearest dollar) using the information below:A physical count of inventory revealed $440,020.00 of inventory /A physical count of supplies revealed $7232.00 of supplies/Depreciation for the year was $24,005.The balance in prepaid rent represents an amount paid Dec. 1st for one year. Even though the notes receivable aren't due until April 30 2021 they will include 8% interest. The Dec. 31 balance represents a 6 month note originating on Nov. 1st 2020. Dec. 31st is a Thursday and $11,000 of salaries for a five day workweek are paid every Friday.2. On the designated pages, make an Adjusted Trial Balance and then Create Financial Statements for 2020 (note: withdrawals of $50,000 were taken earlier in the year.) 1 2 23 Mom & Pop Balance Sheet 4 Current assets 1/1/2020 Mom & Pop UNADJUSTED TRIAL BALANCE B 12/31/20 DR CR 5 Cash 6 Accounts receivable $44,559.00 Cash $6,255.00 $4,690.00 Accounts receivable $1,258.00 7 Office Supplies 8 Inventory 9 Pre-paid rent 10 Notes Rec 11 Fixed assets 12 Building $4,258.00 Office Supplies $11,487.00 $459,871.00 Inventory $441,742.00 $2,000.00 Pre-paid rent $4,000.00 $88,331.00 Building $252,845.00 Accumulated Depreciation $157,000.00 $252,845.00 Furniture $9,000.00 13 Furniture $5,000.00 Equipment $62,000.00 14 Equipment $56,000.00 Notes Rec $81,612.00 15 Land $42,000.00 Land $42,000.00 16 Less Total Accum. Depr -$157,000.00 17 Total assets $198,845.00 $802,554.00 Salaries Payable $5,000.00 Accounts payable $83,125.00 18 Current liabilities 19 Salaries Payable 20 Accounts payable 21 Long term liabilities 22 Notes Payable 23 Total Liabilities $3,000.00 Notes Payable $440,035.00 $88,437.00 Owner's Equity $204,831.00 Sales Revenue $163,208.00 $456,286.00 $547,723.00 COGS Salaries Expense $81,000.00 $42,000.00 24 Owner's Equity $254,831.00 Rent Expense $18,000.00 25 Total Liabilities and Equity $802,554.00 $1,053,199.00 $1,053,199.00