Create an income statement and statement of retained earnings using the following information.

points AJE Unadjusted Trial Balance Debit Credit Adjustecd Accounts Adjustments Journal Trial Balance Entry #s ebit Credit Debit Credit 2,000 Accounts Receivable Allowance for Doubtful 2,200 500 400 Prepaid Insurance Inventorv 4,500 25,000 30,000 1,400 25,000 30,000 Accumulated Depreciation 15,500 Trademarks 50,000 48,500 Accounts Pavable 5,000 2,000 Wages Payable FICA Taxes Payable FUTA & SUTA Taxes Payable Federal & State Income Taxes Payable Unearned Revenue Common Stock Paid-in Capital Retained Earnings Dividends Service Revenue Cost of Goods Sold 2,247 435 6,500 6,700 24,000 24,000 15,000 36,000 15,000 4,800 14,0 16,900 500 Bad Debt Expense nsurance Expense Supplies Expense Payroll Tax Expense 700 284 Impairment Loss for 1,500 Trademarks Depreciation Expense CONTROL: Debits must equal Credits 13,684 13,684 158,3001 158,300 163,684163,684 INSTRUCTIONS: You may print the entire workbook and complete this project on paper or complete the project in Excel. You can use formulas if you want, etc. (a) Reconstruct the amount of the Adjusting Journal Entries (AJEs), above, assign a number to each AJE, and then prepare the tab "AJEs". On the AJE Tab, give a brief explanation of cach journal entry (Note: Failure to include an explanation for each Journal Entry will result in loss of points) Prepare the following financial statements: Income Statement; Statement of Retained Earnings; Balance Sheet. Use the appropriate format with the Name of the Company, Data and the Name of the Financial Statement on Each workpaper b) Prepare an Income Statement for ABC Consulting c) Prepare the Closing Entries in order to prepare the Balance Sheet in the next step for ABC Consulting d) Prepare a Statement of Retained Earnings for the End of Year. e) Prepare a Balance Sheet for ABC Consulting f) Analyze the Financial Statements and complete the answers on the Tab "Questions 1-20." Failure to answer the questions will result in a zero. g) For 10 pts. Extra Credit, prepare a Cash Flow Statement - you will have to design the format on Debit Credit Account Title & Explanation 1 Accounts Payable Cash 2000 (to record payment made) 2 Accounts Receivable 300 Service Revenue 300 (To record services rendered) 3 Bad Debts Expense 400 Allowance for Bad Debts To record bad debts expense) 400 4 Insurance expense 500 Prepaid insurance 500 (To record expired insurance) 5 Supplies expense 700 Supplies 700 (T record supplies consumed during the Year) 6 Cost of Goods Sold 1400 Inventory 1400 (To record cost of inventory) 7 Depreciation Expense 3,500 Accumulated Depreciation 3,500 To record depreciation expense) 8 Impairment Loss for Tradmark 1500 Trademark 1500 38 (To record loss on Trademark) 9 Wages expense 2900 284 Payroll Tax expense 92 FICA Taxes Payable FUTA & SUTA Taxes Payable Federal State Income Taxes Payable Wages Payable 436 94 95 435 2247 To record accrued wages,payroll taxes and related taxes) 10 Unearned Revenue 200 Service Revenue 200 To record revenue earned during the Year)