Completion of the Accounting Cycle compas fal e ries, P4-4B The following is Edge Sports Repair Shop's trial balance at September 30, 2017, the end: and ,3) AP EDGE SPORTS REPAIR SHOP Trial Balance September 30, 2017 Debit Credit Cash Accounts receivable Prepaid insurance Supplies Land Building Accumulated depreciation-building Equipment Accumulated depreciation--equipment Accounts payable Unearned revenue $ 6,750 11,540 4,140 3,780 55,000 100,000 Ins $ 19,150 40,000 11,500 8,850 3,300 125,000 60,000 Mortgage payable R. Brachman, capital R. Brachman, drawings Service revenue Interest expense Salaries expense Utilities expense 103,525 189,250 6,302 75,900 10,113 $417,050 $417050 Additional information: 1. Service revenue earned but not recorded at September 30, 2017, was $5,350. 2. The 12-month insurance policy was purchased on February 1, 2017. 3. A physical count of supplies shows $560 on hand 4. The building has a 5. Salaries of $1,975 are accrued and unpaid at September 30, 2017. 6. The mortgage pay on September 30, 2017 n estimated useful life of 50 years. The equipment has an estimated useful life of eight years. able has a 4.5% interest rate. Interest is paid on the first day of each month for the previous month's interest. 7. On September 30, 2017, one quarter of the unearned revenue was still unearned. 8. During the next fiscal year, $5,400 of the mortgage payable is to be paid. Instructions (a) Prepare the adjusting entries. (b) Prepare an adjusted trial balance. (c) Prepare an income statement, statement of owner's equity, and classified balance sheet. The Brachman, invested $4,000 cash in the business on November 21,2016. The investment has been rec owner, Ralph recorded and it is included in the capital account. (d) Prepare the closing entries. TAKING IT FURTHER Ralph Brachman is concerned that he had to invest $4,000 cash in the business Based on the information in the financial statements, what are your recommendations to Ralph? year