JKL Ltd. has the following balances as of April 30, 2024:

• Cash: $16,000
• Accounts Receivable: $14,000
• Inventory: $19,000
• Prepaid Rent: $2,400
• Equipment: $45,000
• Accumulated Depreciation: $9,000
• Accounts Payable: $13,000
• Salaries Payable: $2,800
• Bank Loan: $18,000
• Common Stock: $30,000
• Retained Earnings: $23,600

Requirements:

1. Prepare a detailed balance sheet.
2. Calculate the working capital and current ratio.
3. Assess the company's financial stability.
4. Prepare adjusting entries for:
   • Depreciation expense: $4,500
   • Rent expense: $1,200
5. Discuss how failing to record adjusting entries would affect financial statements.