1. TONKOLILI INC. has been in operation for two months and it adjusts and closes its accounts at the end of each month. The unadjusted trial balance at March 31, 2021 is listed below the debits and credits are to be created by you as these numbers are not listed by debits and credits. You do not have to recreate the unadjusted trial balance but you will need the total for each account to create the adjusted trial balance. Accounts Amounts Account payable 27.500 Accumulated Depreciation Medical Equipment 6,000 Capital Stock 405,400 Cash 23,700 Dividends 7,000 Income Tax Payable 5.300 Insurance expense 2,020 Medical Equipment 532,000 Medical Fee Receivable 12,300 Medical Fees Earned 79.700 Notes Payable 59,500 Office Supplies 9.750 Prepaid Rent 40.000 Retained Eamings 77,170 Salary expense 81,000 Service Expense 48.000 Unearned Medical Fees 22,300 Total : 1,438,640.00 The Following Information related to month end adjustments. A The company CPA has estimated the total Income tax for March 2021 to be $11,500. B. Office supplies on hand March 31, amounted to $2.750. C. On February 1, 2021. TONKOLILI INC prepaid $ 48,000 of rent for 6 months. D. Many patients pay in advance for major medical procedures: Fees of $18.000 were eamed during the month of March E. Salaries earned by employees during the last week and the half for the month of March but not yet recorded and not paid amounted to $64,000. F. Medical Procedures performed during the last week of the month of March but not yet billed or recorded amounted to $95.000 G. The Useful life of the medical equipment was estimated to be 6 vears with a $100.000 residual value H. On March 1, 2021 the company borrowed money from the bank by signing a $56.000, 15%. 48 months (4 years) note payable. The entire note plus 48 months interest is due on February 28, 2022 Requirement: A For each of the above numbered paragraphs. Prepare (journalize) the adjusting entries required a March 31, 2021 including an explanation). (10 points) B. Prepare the company's adjusting trial balance dated March 31, 2021 (6 point) C. Prepare the income statement (2.5 points) D. Show the effect of transactions 1 through 8 on the Income statement and Balance sheet after the adjustments were made. Use the following (Increase =L, Decrease =D and Not Effect = NE) (10 points) Income Statement Balance sheet Revenue - Expenses = Net Income Asset = Liability + Owners Equity