Attached youll find a preliminary trial balance for Ahern, Inc. ending December 31, 2017. 1. Please analyze the transactions for December, complete and close the T-Accounts and prepare the yearend trial balance for 2017. 2. Analyze the yearend adjustments; update the T-accounts and the final trail balance. 3. Prepare the Income Statement, Statement of Retained Earnings and Balance Sheet for 2017. December Transactions: (These are all recorded on 12/29/17) 1. Products in the amount of $2,100,000 were sold. $580,000 was paid in cash and the balance on account. The cost of these goods was $520,000. 2. $950,000 of the above sale was shipped FOB destination for $25 per $1,000 sold. 3. Payroll in the amount of $522,000 was earned in December but not recorded. Of this, only 300,000 was paid. 4. Returns of $62,000 were received. The cost of these goods is $28,200. The sales were made on account. 5. Discounts of 3% were given to $400,000 of the Accounts Receivable collected in December. 6. Ahern took out a note in the amount of $600,000 was taken out on December 1, 2017 for 2 years at 8.5%. 7. Ahern, Inc. paid for goods purchased on 12/22 terms 2/10,n 30 for $44,300 8. Supplies were purchased on account in the amount of $6,500. 9. Dividends in the amount of $2500 were issued. 10. Please calculate the COGS, changes of Inventory, Revenue and all Sales and Inventory was purchased on account. Use the FIFO method. Part 2 December Adjustments: 1. Ahern purchased a building for $3,500,000. They purchased it using a mortgage for the full amount. There other properties were fully depreciated. The building had a residual value of $500,000 and an expected life of 75 years. Record the building purchase and this years depreciation. 2. The equipment has a residual value of $17,710 and a useful life of 20 years. Record the depreciation for this year. 3. Calculate the interest due for the $600,000 note at % on December 1. Record the year-end interest. 4. The current portion of the new mortgage due is $350,000. Please make the appropriate entries. 5. During the last pay period of the year, a payroll of 5 days was earned with 5 days left in the New Year. 5 workers made $25 an hour for 8 hrs a day. 2 workers worked 4 extra hours on 3 days at time and a half record the entries for December. 6. $100 of unearned revenue was earned by year-end. 7. An insurance policy was purchased on September 1, 2017. For one year in the amount of $6000. Record the entry for Decembers expired insurance. It is paid monthly. 8. The ending balance of supplies was $8000. 9. Income tax was calculated at 20%. Cash= 329,325 Acount receivable= 251,975 Land= 887,750 Building= 430,320 Equipment= 242,710 supplies= 9,970 prepaid insurance= 8350 inventory= 446,400 returns and allowances= 50,000 Cost of good sold=600,000 insurance expense= freight out= 13,000 discounts= 70,000 wage expense=1,900,500 income tax expense= interest expense supplies expense depreciation expense (equipment) depreciation expense (land) Credits: Accumulated depreciation for buildings= 201,950 Accumulated depreciation equipment= 47,875 Notes payable= 770,500 accounts payable=282,780 wages payable= unearned revenue=189,825 short term portion of mortgage payable= 7,775 income tax payable= 17,150 interest payable=103,696 common stock=649,000 mortgage payable revenue=2,597,149 retained earnings= 372,600