1.Kathy Morris owns a small decorating business called Premium Decorating. A partiallycompleted worksheet for Premium Decorating and additional information follow directly.Additional Information1. Purchase invoices received in January 20-3, which pertain to goods or services receivedin 20-2, are for the following:Telephone Expense$102Car Expense389Supplies2502. The supplies counted and valued as of December 31, 20-2, are $980.3. The unexpired insurance on December 31, 20-2, amounted to $1040.A. Using the additional information above, complete the eight-column worksheet fully. HSTaccounts are not to be considered. (Include the net income on the worksheet) (A-15)B. List all adjusting entries on the next page:Premium DecoratingWorksheetYear Ended December 31, 20-2TRIAL BALANCEADJUSTMENTSINCOME STATEMENTBALANCE SHEETACCOUNTSDrCrDrCrDrCrDrCBank4 047.50Accounts Receivable7 421.00Supplies3 000.00Prepaid Insurance1 880.00Furniture and Equipment8 500.00Automobile12 800.00Accounts Payable3 250.00Bank Loan10 000.00K. Morris, Capital23 949.50K. Morris, Drawings19 500.00Fees Earned40 072.00Bank Charges360.0Car Expense3 547.00iscellaneous Expense200.00Rent Expense6 000.00Telephone Expense812.00Interest Expense900.00Wages Expense8 304.0077 271.50 77 271.50