Integrative Pron Employee salaries, medical supplies, depreciation, and gasoline are the major expenses Employees are paid every Friday for work performed during the Saturday to Friday pay period. Salanes amount to $800 per day In 2016, December 31 falls on a Saturday, Medical supplies (average use of $1,500 per week) are purchased periodically to support healthcare coverage. The inventory of supplies on hand on December 31 amounted to $8,653. The firm own five automobiles (all purchased at the same time) that average 50,000 miles per year and are replaced every three years. They typically have no residual value. The building has an expected life of 20 years with no residual value, Straight-line depreciation is used on all of the firm's assets. Gasoline costs, which are a cash expenditure, average $375 per day. The firm purchases a three year extended warranty contract to cover maintenance costs. The contract costs 39,000 (Assume equal use each year) On December 29, 2016, Mountain Home Health declared a dividend of $10,000, payable on January 15, 2017. The firm makes annual mortgage payments of principal and interest each June 30. The interest rate on the mortgage is 6%, The following unadjusted trial balance is available for Mountain Home Health on December Cash lings Receivable (net) Medical Supples Extended Warranty Autoenobles Acumulated Depreciation Automobiles Mountain Home Health Inc. Unadjusted Trial Balance December 31, 2016 Buking Accumulated Deomcation-Buding Accounts Payable Ovidend Payable Mangage Payable Capital Stock Additional Pardin Capital Retained Eainings Medical Services Revenue Salary and Wages Expense Gascine Expense Unices Expenon Dividends Tota's Debit $ 77,400 151,000 73,000 3,000 00.000 200,000 288,000 137,500 12,000 10,000 $1.041.000 Credit $ 60,000 50.000 22,000 10,000 100.000 100,000 50,000 90,000 550.000 $1.041,900 Required 1. Set up T accounts for each of the accounts listed on the trial balance. Based on the informa- tion provided, set up any other T accounts that will be needed to prepare adjusting entries. 2. Post the year end adjusting entries directly to the T accounts but do not bother to put the entries in journal format first. 3. Prepare an income statement and a statement of retained earnings for Mountain Hope Health for the year ended December 31, 2016. 4. Prepare a balance sheet for Mountain Home Health as of December 31, 2016. (Continued Salary and Wages Expense Gasoline Expense Uslities Expense Dividends Totals 288,000 137,500 12.000 10.000 $1,041,900 $1,041,900 Required 1. Set up T accounts for each of the accounts listed on the trial balance. Based on the informa- tion provided, set up any other T accounts that will be needed to prepare adjusting entries. Post the year-end adjusting entries directly to the T accounts but do not bother to put the entries in journal format first. 2. 3. Prepare an income statement and a statement of retained earnings for Mountain Home Health for the year ended December 31, 2016. 4. Prepare a balance sheet for Mountain Home Health as of December 31, 2016. (Continued)