1. Protiviti Company is a manufacturer of auto parts that was started several years ago. On December 31,2021 (fiscal year-end), the company created a trial balance in preparation of financial statements for the year (see below for the trial balance). In addition, the following information was obtained after the trial balance was created and before adjusting entries or closing entries were prepared. 1. The company's remaining supplies was $700. 2. A one-year auto insurance policy was purchased on July 1,2021 for $29,400. 3. A new equipment with an estimated useful life of fifteen years was acquired on March 1,2021 . The cost of machine was $85,000 and the residual value was estimated to be $9,400. The company uses the straight-line method for depreciation. 4. On August 1, 2021, the company received $8,700 in advance for a 6-month rental contract. 5. On December 31,2021 , the company owes wages of $1,620 to its employees, which will be paid on January 2, 2022. 6. On October 31, 2021, the company borrowed $100,000 from its local bank and issued a note payable. The interest will be paid in 6 months (April 30,2022 ) with an annual interest rate of 3%. 7. The company estimated that the bad debt expense for the year was $1,250. 8. On December 21, 2021, the company declared and paid a total of $2,720 dividends to shareholders. 9. Income tax rate is 45%. Required: A) Provide adjusting journal entries as needed for each of the above. If necessary, explain why you recorded certain entries and amounts. ( 50 points) B) Provide closing journal entries. Clearly show how you arrived at the amounts presented in journal entries. (30 points) C) Prepare a balance sheet and income statement. (100 points) PROTIVITI COMPANY TRIAL BALANCE 31 DECEMBER 2021 3