(1) The estimated useful life of equipment is five years and straight-line depreciation method is adopted. Depreciation expense had been updated to end of September 2018. (2) Accrued, but unrecorded and unpaid wages amounted to $7,000. (3) On November 1, 2018, the company borrowed $42,000 from its owner by signing 9-month note at 8% interest rate per annum. The monthly interests were paid by the company at the end of the next months. No entries had been made after recording the note. (4) Physical count shows supplies on hand were $6,000 on December 31, 2018. (5) On August 1, 2018, the company prepaid a 12-month insurance policy, which was effective on September 1, 2018. (6) On December 31, 2018, the Company declared a cash dividend of $0.10 per share to be paid in the following year. (7) Group class coupons amounting $8,000 were redeemed in December, 2018. (8) The Company estimated that the income taxes expense for the entire year was $30,300, which to be paid next year. (9) Unrecorded and unpaid fuel expenses of the owner's private vehicle amounted to $2,000. Required: (a) Prepare the necessary adjusting journal entries on December 31, 2018 so as to bring the nancial records of Always Fit Company up-to-date. Workings are required, but egplanaons are NOT required. If no adjusting entries are required, state \"No why\" and name the accounting principle applied. (9 marks) (b) Prepare the income statement of the Company for the year ended December 31, 2018, showing breakdown of items under the captions of Total Revenues, Total Expenses, Prot before Tax, Prot after Tax. (5 marks) (c) Prepare the statement of nancial position as of December 31, 2018, showing breakdown of items under the captions of Total Assets, Total Liabilities, Total Shareholder's Equity and Total Liabilities & Shareholders\" Equity. (1 1 marks)