A partial worksheet of Wang's Service as of December 31, 2018, the end of current fiscal year, are presented below: Trial Balance Account Name Debit Credit Cash 246,960 Accounts Receivable 47.250 Merchandise Inventory 52, 290 Store Supplies 3,654 Prepaid Insurance 3.780 Equipment 157,500 Accumulated Depreciation: Equipment 6,300 Accounts Payable 48,510 Wang, Capital 240.219 Wang, Drawing 3, 150 Sales 744,660 Sales Returns and Allowances 7,560 Purchases 428, 400 Purchases Returns and Allowances 4,284 Purchase discount 2,016 Salary Expense 94,500 Utilities Expense 915 1.045,989 1,045,989 The data for adjustments are as follows: (1) Ending merchandise inventory, 50,000 yuan. (2) Store supplies used during the year, 1827 yuan. (3) Insurance expired during the year. 945 yuan. (4) Depreciation of equipment for the year, 2100 yuan. 4/7 Using the information above, please answer the following questions: 1. Prepare an income statement. (18%) Wang's Service Income Statement for the year ended December 31, 2018 Revenue from Sales: Cost of Goods Sold: Gross Profit: Operating Expenses: Net Income 2. Prepare a statement of owner's equity. (10%) Statement of Owner's Equity For the year ended December 31, 2018 3. Prepare a balance sheet. (15%) Balance Sheet For year ended December 31, 2018 Assets Current Assets: Plant and Equipment: Total Assets Liabilities & Owner's Equity Current Liabilities: Owner's equity: Total Liabilities and Owner's Equity 6/7 4. Journalize the adjusting entries. (10%) Wang's Service Adjusting entries Date Account Name Debit Credit