1 QUESTION 1 A B 2 3 The following is a period end trial balance for Davis Pub. 4 at the end of December 2021 5 6 Cash $120,000 7 Credit Card Receivable 2,300 8 Inventory 36,200 9 Prepaid Insurance 8,100 10 Equipment 250,000 11 Accumulated Depreciation 12 Accounts Payable 13 Unearned Revenue 14 Bank Loan 15 Davis, Capital 16 Davis, Drawings $55,000 2,700 2,100 78,500 244,450 87,000 17 Sales Revenue 350,000 18 Cost of Sales 110,000 19 Maintenance Expense 1,800 20 Rent Expense 21,000 21 Salaries Expense 94,200 22 Telephone Expense 2,150 23 $732,750 $732,750 24 25 26 Period end information: Insurance was paid for 1 year on October 1st Equipment expected life is 10 yr with no residual value An inventory count showed inventory to be valued at $33,100 Interest owed on bank loan is estimated to be $450 Unearned revenue comes from two events. The first one deposited $1,000 and was held Dec. 23rd The second one deposited $1,100 and will be held in Jan. At the end of the year, $2,000 in wages was owed Required: 1. Complete the adjustment worksheet 2. Prepare the Financial Statements