BB88, Inc. ("BB88") began operations on January 1, 2020 and has the following unadjusted trial balance (amounts are in thousands- 000's): ACCOUNT DEBIT CREDIT CASH 376 PREPAID INSURANCE 24 LOAN RECEIVABLE 60 EQUIPMENT 120 ACCOUNTS PAYABLE 10 LOANS PAYABLE 200 COMMON STOCK 501 RETAINED EARNINGS O DIVIDENDS 5 5 EQUIPMENT 120 ACCOUNTS PAYABLE 10 LOANS PAYABLE 200 COMMON STOCK 501 RETAINED EARNINGS 0 DIVIDENDS 5 UTILITIES EXPENSE 6 CONSULTING 120 SERVICES EXPENSE TOTAL 711 711 Additional information is as follows: 1. The loan receivable related to a loan BB88 made to C3PO, inc. The loan was made on September 1, 2020, has an interest rate of 10%, and will be repaid by C3PO on August 31, 2022. All interest and Additional information is as follows: 1. The loan receivable related to a loan BB88 made to C3PO, inc. The loan was made on September 1, 2020, has an interest rate of 10%, and will be repaid by C3PO on August 31, 2022. All interest and principal (the loan amount) will be due on 8/31/22. 2. The equipment was purchased by BB88 on March 1, 2020. The equipment has a useful life of 5 years and a salvage value of $30. BB88 uses straight line depreciation to depreciate its equipment. 3. The loan payable relates to money borrowed by BB88 on October 1, 2020. The interest rate on the loan is 6% and will need to be repaid by BB88 on September 30, 2023. All interest and principal (the loan amount) will be due on on 9/30/23. 4. BB88 signed an agreement to perform services on June 1, 2020 for Yoda Baby, Inc.("YBI"). BB88 will perform services for YBI for a period of 2 years at a rate of $30 per month. BB88 performed the services for YBI, however, BB88 did not send an invoice to YBI and YBI did not pay BB88 any amounts during 2020. 5. The Consulting Services Expense was recorded on September 1, 2020. The amount relates to an advance given by BB88 to Mandalorian, Inc. ("MI"). MI will perform the services for BB88 from September 1, 2020 through August 31, 2021 at a rate of $10 per month. 6. The prepaid insurance relates to a policy that started on March 1, 2020 and will expire on February 28, 2021. 2020. The amount relates to an advance given by BB88 to Mandalorian, Inc. ("MI"). MI will perform the services for BB88 from September 1, 2020 through August 31, 2021 at a rate of $10 per month. 6. The prepaid insurance relates to a policy that started on March 1, 2020 and will expire on February 28, 2021. REQUIRED: A. For each item of additional information, prepare a journal entry, IN PROPER form. B. Prepare an adjusted trial balance. C. Prepare an income statement for BB88 for the year ended 12/31/20. D. Prepare a statement of retained earnings for the year ended 12/31/20. E. Close out temporary accounts to retained earnings using T- Accounts. F. Prepare a post-closing trial balance. G. Prepare a CLASSIFIED Balance Sheet as of 12/31/20
