1(61%) Savoy Company Limited closes its books at the end of the year. The trial balance on December 31, 2021 before adjustments is as follows: Savoy Company Limited Trial Balance December 31, 2021 Account Debit Credit Cash $1,240,000 Office supplies $70,000 Prepaid rent $480,000 Notes receivable $500,000 Office equipment $800,000 Accumulated depreciation $480,000 Accounts payable $65,000 Unearned sales revenue $290,000 Common stocks $1,000,000 Retained earnings $565,000 Sales revenue $2,410,000 Salary expense $980,000 Advertising expense $80,000 Utilities expense $160,000 Dividend $200,000 Insurance expense $180,000 Sales commission $120,000 $4,810,000 $4,810,000 Additional data on Dec 31, 2021: 1. One-year insurance policy was purchased on Nov 1, 2021 and the amount was recorded as insurance expense 2. The useful life of office equipment is 10 years and equipment is depreciated on straight-line basis 3. One year rental expense had been paid in full and the amounted was debited to Prepaid Rent account. Prepaid rent still in force on Dec 31 was $160,000. 4. Unearned sales revenue still not earned $90,000. The company expects to earn this amount during the next few months. 5. Accrued salaries $120,000. 6. The note of $500,000 is a 12%, 1-year note which was received from a customer on Aug 1, 2021. No any interest has been received yet. 7. Office supplies on hand at Dec 31 amounted to $20,000 Required: (a) Prepare the adjusting entry for each of the above items. Omit narrative description. (18%) (b) Prepare the Income Statement for the year ending Dec 31, 2021. (22%) (c) Prepare the Statement of Financial Position (Balance Sheet) as at Dec 31, 2021. (21%)