George Jarvis purchased a trailer park on January 1, 0007. It is now March 31. George has no accounting training but has kept a record of his cash receipts and cash payments for the three months. Cash Receipts Cash Payments Jarvis investment for trailer park shares $100,000 Land $168,600 Building 216,000 Office equipment 8,000 Mortgage payable 350,000 Insurance 4,800 Wages 4,500 Maintenance 400 Office supplies 300 Utilities 900 Property taxes 6,000 Jarvis, salary 10,500 Rental sales revenue 60,000 Mortgage interest expense 4,667 Mortgage principal payments, Jan. and Feb. 2,000 As Mr. Jarviss accountant, you discover the following additional information: a. The building has an estimated life of 20 years and straight-line depreciation is used. b. The office equipment has a five-year life with a trade-in value of $500. c. The insurance was prepaid on January 1 for the entire year. d. The wages are for the maintenance worker who worked but has not yet been paid for five days during the period ending March 31, 0007. The wage is $9.95 per hour and the work day is eight hours. e. An invoice for grounds maintenance expense of $80 has not yet been paid. f. There are $100 in office supplies remaining in inventory. g. The March utility bill has not yet been received. It is estimated to be $400. h. The property taxes were paid in January for the entire year. i. A rental tenant whose rent is $200 has not yet paid for March. j. Included in the $60,000 received for rental income to date is the amount for a tenant who has prepaid for the entire year. The rent is $175 per month. k. No interest or principal has been paid on the mortgage for March. Interest for March is $2,333. Principal payments for the balance of the year (including March) are $12,000 and should be identified as current mortgage payable. The balance of mortgage payable is $336,000. l. The income tax is 25% of operating income and is payable in April. Using accrual based accounting, prepare an adjustments worksheet, income statement for the three months ending March 31, 0007, and a balance sheet as of March 31, 0007.