I need

1. Income statement for the year ending December 31 2020.
2. Statement of changes in equity as at December 31 2020.
3. Balance sheet as at December 31 2020.

Step 1: INTRODUCTION: Name of company Owners names Location of the company Description of the service Starting date of the business Capital invested by the owner Nitch consultants Barry Moore New york, USA Providing conslting services on accounting and auditing (Certified Public Accountant firm) 01-01-2020 Cash $ 500,000 Office equipment $ 150,000 Land $ 600,000 Building $ 500,000 Total capital $ 1,750,000 Step 2: a Trial balance (Unadjusted trial balances) Nitch consultants Trial balance for the month ended 30 September 2020 (Unadjusted) Account Debit Credit $ 435,000 Service revenue Utilities expenses General administration expenses Marketing expenses Office supplies Telephone, internet expenses Salaries expense Land Building Prepaid insurance Prepaid marketing fee Office equipment Cash Accounts receivables 6% bank loan Depreciation - building Depreciation - office equipment 10,000 25,000 30,000 20,000 10,000 50,000 600,000 800,000 60,000 40,000 200,000 1,000,000 80,000 $ 250,000 $ 53,333 33,333 (from January 2020 - August 2020) (from January 2020 - August 2020) Step 2: a Trial balance (Unadjusted trial balances) Nitch consultants Trial balance for the month ended 30 September 2020 (Unadjusted) Account Accumulated depreciation - building - 01-09-2020 Accumulated depreciation - office equipment - 01.09.2020 Other payables Cash drawings Capital Unearned service revenue Insurance expense Interest expense Retained earnings 01-09-2020 Credit 133,333 83,333 10,000 $ Debit $ $ $ 25,000 $ $ $ 40,000 10,000 $ 3,086,667 $ 1,750,000 25,000 $ $ 400,000 3,086,667 $ Step 3: Mention the transactions for adjustment entries as given in the project requirement Step 3: Mention the transactions for adjustment entries as given in the project requirement 1. A sale on credit to a customer but not recorded anywhere in the books Provided consulting service for the month of September to MJ Limited amounting to $50,000 which will be received on 12-10-2020 2. Supplies at hand and used at the end of year $15,000 of the office supplies have been used on the assignments completed and $5,000 office supplies remain at hand at the end of September 2020 3. Atleast 2 Prepaid expenses expired Insurance charge for September is $5,000 yet to be adjusted Marketing fee for September is $ 15,000 yet to be adjusted 4. Depreciation expense on equipment using straight line method Depreciation on equipment is 25% on straight line method Depreciation on building is 10% on straight line method 5. Atleast 2 Accrued expense Accrued salary for the month of September $5,000 Accrued utility bill for the month of September $5,000 6. Portion of Unearned service revenue expired (earned) $15,000 of the unearned service revenue was earned during September 2020 7. Interest payable or receivable Interest on bank loan for the month of September at the rate of 6% per annum to be paid on 03-10-2020. Step 4: Record the adjusting entries General Journal Accounts and description Debit Credit 1 $ 50,000 Accounts receivable Service revenue (service income receivable from MJ Limited for September) 50,000 2 $ 15,000 Office supplies expense Office supplies (office supplies used during September 2020) $ 15,000 3 $ 5,000 Insurance expense Prepaid insurance (to record the insurance charge for September) 5,000 $ 15,000 Marketing expenses Prepaid marketing fee (to record the marketing expense incurred for September) $ 15,000 4 $ 4,167 (200,000 x 25% x 1/12) Depreciation - office equipment Accumulated depreciation - office equipment (to record the depreciation charge for the month of September) $ 4,167 Step 4: Record the adjusting entries General Journal Accounts and description Debit Credit $ 6,667 (800,000 x 10% x 1/12) Depreciation - building Accumulated depreciation - building (to record the depreciation charge for the month of September) $ 6,667 5 5,000 Salaries expense Accrued salaries (to record the accrued salaries for September) $ 5,000 5,000 Utility expense Accrued utilities (to record the electricity bill payable for September) $ 5,000 6 15,000 Unearned service revenue Service revenue (to record the earned service revenue for September) $ 15,000 7 1,250 (250,000 x 6% x 1/12) Interest expense $ Interest payable (to record the interest payable on 03-10-2020 for the month of September) $ 1,250 Step 5: Prepare Adjusted Trial balance (using the Unadjusted Trial balance and adjusted entries) Nitch consultants Trial balance for the month ended 30 September 2020 (Adjusted) Account Debit Credit $ 500,000 (435,000 + 50,000+ 15,000) (10,000 + 5,000) $ $ Service revenue Utilities expenses General administration expenses Marketing expenses Office supplies Telephone, internet expenses Salaries expense (30,000 + 15,000) (20,000 - 15,000) (50,000 + 5,000) Land 15,000 25,000 45,000 5,000 10,000 55,000 600,000 800,000 55,000 25,000 200,000 1,000,000 130,000 (60,000 - 5,000) (40,000 - 15,000) Building Prepaid insurance Prepaid marketing fee Office equipment Cash Accounts receivables 6% bank loan Depreciation - building Depreciation - office equipment Accumulated depreciation - building - 01-09-2020 Accumulated depreciation - office equipment - 01.09.2020 $ $ $ $ $ 60,000 37,500 (80,000 + 50,000) 250,000 (53,333 +6,667) (33,333 + 4,167) 140,000 (133,333 +6,667) 87,500 (83,333 + 4,167) $ $ Step 5: Prepare Adjusted Trial balance (using the Unadjusted Trial balance and adjusted entries) Credit 10,000 $ Debit $ 25,000 $ $ $ 15,000 45,000 $ 1,750,000 10,000 (25,000 - 15,000) Nitch consultants Trial balance for the month ended 30 September 2020 (Adjusted) Account Other payables Cash drawings Capital Unearned service revenue Office supplies expense Insurance expense Accrued salaries Accrued utilities Interest expense Interest payable Retained earnings 01-09-2020 $ $ $ $ 11,250 $ $ 3,158,751 $ (40,000 + 5,000) 5,000 5,000 (10,000 + 1,250) 1,250 400,000 3,158,751 $