A. Preparing Financial Statements (Total marks: 36) 1. The following amounts summarize the financial position of The Adams Company on May 31, 2020: Assets Liabilities 1 Cash Accounts Receivable 1,000 Supplies & Land 12,000 Accounts Payable 8,000 Stockholder's Equity Common Retained Shares Earnings 4.000 2,300 $1,300 a. c. e. During June 2020, the business completed these transactions: Performed services for a client, and received cash of $7,600. b. Paid $4,000 on accounts payable. Received cash of $5,000 and issued common shares. d. Purchased supplies on account, $1,500. Collected cash from a customer on account, $1,000. f. Consulted on the design of a business report, and billed the client for services rendered, $2,500. 5. Recorded the following business expenses for the month: paid office rent, $900; paid advertising, $300. h. Declared and paid a cash dividend of $2,000. i. Received payment in advance from JAK Company of $1,800 for rental of office space, for the months of June, July and August. j. Bought a three-year business insurance policy of $3,600 and pays cash for it. k. Recorded depreciation on Office Equipment of $400 per month. Apply the basic accounting equation to complete a transaction analysis for each transaction. (Hint: enter the balances provided first) Prepare any adjusting entries, if necessary. 3. Prepare a trial balance for The Adams Company, 4. Prepare the Income Statement of The Adams Company for the month ended June 30, 2020. List expenses in decreasing order by amount. 5. Prepare the entity's Statement of Retained Earnings for the month ended June 30, 2020, 6. Prepare the Balance Sheet of The Adams Company at June 30, 2020