Given: The following balances were taken from the Pre closing Trial Balance of Badal and Co. prepared on Dec.31 2004. Debit Balance: Cash Rs.7.400, Account Receivable Rs.40.000. Merchandise Inventory (Jan,01) Rs.32.000. sales Equipment Rs.30.000. Pre-paid Insurance Rs.800. Sales supplies Rs.1,200. purchases Rs.100.000 Sales salary expenses Rs.9,600, office salary Expanse Rs.4,000. Allowance for bad debts Rs. 700. Advertising Expense Rs.3,300 (Total Rs.228,000) Credit Balances: Sales Rs.156.000, Account payable Rs.24.000 Fatima Capital Rs.49.000 (Total Rs. 228,000) Data for adjustments on December 31. 1) Merchandise Inventory was valued at Rs.30.000. 2) Sales supplies were Rs.200. 3) Insurance expired Rs.400. 4) Unpaid sales salaries were Rs.500. 5) Depreciation on fixed assets was estimated Rs. 5,000. 6) Bad debts estimated Rs. 1,000. Required: i. Prepare adjusting Entries, ii. Prepare adjusted trail Balance, iii. Prepare income statement for the year ended Dec.31,2004, iv. Prepare Report Form balance sheet as of Dec. 31,2004