cash Debtors stock Machinery Building Inventory Carriage in ward Salaries Expense Auditor Fees Rent Expense Supplies Prepaid Inssurance Total Debit $ 17,000.00 30,000.00 140,000.00 400,000.00 700,000.00 300,000.00 2,000.00 18,000.00 10,000.00 8,000.00 2,000.00 3,000.00 1,630,000.00 Bond payble Comission earned Sales Allowance for bad debts Creditors Owner's Equity Retained Earnings Credit $ 100,000.00 3,500.00 500,000.00 1,500.00 25,000.00 800,000.00 200,000.00 Total 1,630,000.00 Adjustment Data: 1. Depreciation for the year on machinery at 10% and building at 15%. 2. INSURANCE expired $ 1000. 3. Rent expense for the year was $ 6000. 4. Allowance for bad debts is to be increased by 2% on debtors. 5. 10 % Accrued interest on bond of the year. 6. Closing merchandise inventory was valued $ 65000. Requirement Record the adjusting entries and make adjusted trial balance. Prepare an Income statement for the year ended August 31, 2020. Prepare Balance sheet as on August 31, 2020