DEF Ltd. Account Balances as of September 30, 2024:

• Cash: $12,000
• Accounts Receivable: $22,000
• Inventory: $25,000
• Accounts Payable: $14,000
• Utilities Payable: $1,000
• Building: $55,000
• Accumulated Depreciation: $20,000
• Loan Payable: $30,000
• Common Stock: $35,000
• Retained Earnings: $14,000

Requirements:

1. Prepare a trial balance.
2. Prepare adjusting entries for the following:
   • Depreciation expense: $2,000
   • Utilities expense: $1,200
3. Prepare an adjusted trial balance.
4. Prepare a balance sheet.
5. Explain the importance of the matching principle in accounting.