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4. (15 points) (Adjusting Entries and Financial Statements) The following are the trial balance and the other information related to Denise Perez, a consulting engineer.

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4. (15 points) (Adjusting Entries and Financial Statements) The following are the trial balance and the other information related to Denise Perez, a consulting engineer. e NOT reflected in the above trial balance. You'll need to add some accounts as you record the adjustments/transactions below: 1. Provided $12,500 of the services related to the unearned revenue reflected in the trial balance. Record the adjustment. 2. Services performed for clients that were not recorded by December 31,$52,300. Record the accrued revenue. 3. Bad debt expense for the year is estimated at $8,500. Record bad debt expense. 4. The prepaid insurance balance of $2,200 reflects 11 months' insurance and was paid on July 1 st of this year, Record the adjustment for the expired insurance. 5. Equipment has a 20 year useful life and salvage value of $5,000. Record depreciation expense using the straight-line method (record for the whole year). 6. The company took out a loan from the bank (this transaction was already recorded). It was a 240 day, 7% note for $60,000 taken out on November 1,2020 . Record the accrued interest expense for the months of November and December. 7. Rent on the administrative offices building is $1,000 per month. The company paid for 4 month's rent on October 1,2020 (this entry was already recorded as prepaid rent). Record the used portion of prepaid rent at December 31,2020. 8. Office salaries and wages earned but unpaid December 31,2020,$11,150. Record accrued salaries and wages. 9. The owner of the company withdrew $3,500 cash for personal use. (a) From the trial balance and other information given, prepare adjusting/journal entries as of December 31, 2020 (items 1-9 above). From the unadjusted trial balance and the adjusting entries above, create an adjusted trial balance below. (c) Prepare an income statement, a statement of owner's equity, and a balance sheet for fiscal year 2020. The statements should reflect all the adjustments recorded above

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