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Information below is given for Marlene Equestrian Services Inc. for the year ended December 31, 2020. The account balances (all of which had their normal

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Information below is given for Marlene Equestrian Services Inc. for the year ended December 31, 2020. The account balances (all of which had their normal balance of debit or credit) at the beginning of 2020 January 1, 2020) were as follows: Cash Accounts Payable Accounts Receivable Income Tax Payable Prepaid Supplies (Feed and Straw) Interest Payable Land (cost) Wages Payable Buildings (cost) Notes Payable (due in 2024) Accumulated Depreciation (Buildings) Common Shares Equipment Retained Earnings, 12/31/2019 Accumulated Depreciation (Equipment) $ $ $ S S $ $ S S $ S S $ S $ 3.960 42.660 7,920 27.180 50,040 4,860 300,600 25,560 207.000 108,000 64.800 270,000 102,600 99,360 29.700 During the year ended December 31, 2020, the following transactions occurred: a. Marlene earned its revenues in a variety of ways. It rented stables to customers for $36,900 paid in cash. It rented its grounds to individual riders, groups, and show organizations for $75,240 paid in cash. Marlene also provided horse grooming and training services to customers, all on credit, for $540,540. b. Straw was purchased for $13,320 cash and debited to the prepaid supplies account. c. Feed in the amount of $149,220 was purchased from suppliers on credit and debited to the prepaid supplies account. d. There remains $28,080 of accounts receivable to be collected at December 31, 2020. e. Wages payable at the beginning of 2020 were paid early in 2020. Wages were carried by employees in the amount of $201.600, of which $16.500 remained unpaid at end of 2020. f. The income tax payable at the beginning of 2020 was paid early in 2020. g. Payments of S173,000 were made to creditors for supplies previously purchased on credit h. One year's interest at 6.5% was paid on the notes payable on July 1, 2020. i. During 2020, Scott Pickett, a principal shareholder, purchased a diamond ring for his wife, Phoebe. The ring cost $17,000, and Scott used his personal credit to purchase it. j. Property taxes were paid by cheque on the land and buildings in the amount of $34.000. k Marlene purchased a truck for $34,000, paid $15,000 in cash and paid the rest of the price in common shares. 1. Dividends were declared and paid by cheque in the amount of $20,200. Year End (December 31, 2020) Data The following data is available for preparation of adjusting journal entries at December 31, 2020: Supplies (feed and straw) in the amount of S48,400 remained unused at year-end. Annual depreciation on the buildings is $9,000. Annual depreciation on all the equipment is $10,500. Interest for six months at 6.5% per year on the note is unpaid and unrecorded at year-end. Income taxes of $29,500 were unpaid and unrecorded at year-end. Required: 1. Post the beginning balances at January 1, 2020 to Taccounts. Prepare required journal entries for all transactions a to 1 and post the journal entries to the relevant T accounts. Add any new Taccounts you need. 2. Prepare all required adjusting journal entries at December 31, 2020 and post the adjusting journal entries to the T accounts. Add any new T accounts you need. 3. Prepare, in proper financial statement format, a single step statement of earnings for the year ended December 31, 2020. 4. Prepare in proper financial statement format, a statement of retained earnings for the year ended December 31, 2020. 5. Prepare, in proper financial statement format, a classified statement of financial position as at December 31, 2020

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