Directions: Prepare general journal entries on December 31 to record the following year-end adjustments. a. Estimated depreciation on office equipment for the year, $4,000. b. The Prepaid Insurance account has a $3,680 debit balance before adjustment. An examination of insurance policies shows $950 of insurance expired. c. The company has three office employees who each earn $100 per day for a five- day workweek that ends on Friday. The employees were paid on Friday, December 26, and have worked full days on Monday, Tuesday, and Wednesday, December 29, 30, and 31. d. On November 1, the company received 6 months' rent in advance from a tenant whose rent is $700 per month. The $4,200 was credited to the Unearned Rent account. e. The company collects rent monthly from its tenants. One tenant whose rent is $750 per month has not paid his rent for December. Part II Hanson Storage adjusted trial balance as of December 31 of the current year follows. HANSON STORAGE Adjusted Trial Balance December 31, 200- Cash 3,050 Accounts Receivable 400 Prepaid Insurance 830 Office Supplies 80 Office Equipment 4,200 Accum Depr.- Office Equip. 1,100 Buildings 98,000 Accum. Depr.- Buildings 28,000 Land 115,000 Wages Payable 880 Property Taxes Payable 1,400 Interest Payable 2,200 Unearned Rent 460 Long-term Notes Payable 150,000 M. Hanson, Capital 40,340 M. Hanson, Withdrawals 21,000 Rent Earned 57,500 Wages Expense 25,000 Utilities Expense 1,900 Property Taxes Expense 2,400 Insurance Expense 800 Office Supplies Expense 250 Depr. Exp. Office Equip 400 Depr. Exp. Buildings 5,570 Interest Expense 3,000 Totals 281,880 281,880 1. Prepare an income statement from the adjusted trial balance of Hanson Storage. 2. Prepare a statement of owner's equity from the adjusted trial balance of Hanson Storage. Ms. Hanson's capital account balance of $40,340 consists of a 30,340 beginning-year balance plus a $10,000 investment during the current year. 3. Prepare a classified balance sheet from the adjusted trial balance of Hanson Storage.