Assume you are the accountant for Catalina Industries. John Catalina, the owner of the company, is in a hurry to receive the financial

statements for the year ended December $31,20$X$1,$ and asks you how soon they will be ready. You tell him you have just completed the

trial balance and are getting ready to prepare the adjusting entries. Mr$.$ Catalina tells you not to waste time preparing adjusting entries

but to complete the worksheet without them and prepare the financial statements based on the data in the trial balance. According to

him, the adjusting entries will not make that much difference. The trial balance shows the following account balances:

If the income statement were prepared using trial balance amounts, the net income would be $$193,360.$

A review of the company's records reveals the following information:

Rent of $$87,000$ was paid on July $1,201,$ for $12$ months.

Purchases of supplies during the year totaled $$39,400.$ An inventory of supplies taken at year$-$end showed supplies on hand of

$$5,780.$

The building was purchased three years ago and has an estimated life of $30$ years and a salvage value of $$50,000.$

No adjustments have been made to any of the accounts during the year.