Long answer question 5 is mandatory. Long answer question 5 will be worth a total of 30 marks. 5 New Man Clothing Co. (NMCC) is preparing their annual financial statements for the fiscal year ended December 31, 2022. Their unadjusted trial balance is attached to this exam as Appendix B. a) Where an adjusting journal entry is required, prepare the adjusting journal entry. Where no adjusting journal entry is required, write "no adjusting entry". Calculations will be accepted on a weekly or monthly basis, as applicable (i.e. no need to count the days). Hint - assume that the original entry was posted correctly. You only need to prepare the adjusting journal entry. i) On November 1, 2022, NMCC paid $12,000 for the next 12 months rent. ii) On January 7, 2023, NMCC pays $7,000 of wages for the prior 2 weeks. No entry has been booked. ii) NMCC purchased new equipment on July 1, 2022 for $16,000. The equipment has an 8 year useful life, and is expected to have no salvage value. Calculations on a monthly basis will be accepted. iv) At their year end inventory count on December 31, 2022, NMCC counted $276,800 of inventory on hand. v) On December 31, 2022, NMCC declared a dividend of $25,000. vi) At the beginning of the year, NMCC issued common shares for $100,000. b) Prepare the income statement, statement of changes in equity, and balance sheet. New Man Clothing Co. Unadjusted Trial Balance December 31, 2022 Debit Credit 50,800 25,600 290,250 7,500 2,000 16,000 30,400 Account Cash Accounts receivable Inventory Supplies Prepaid Rent Equipment Accumulated depreciation - equipment Accounts payable Dividends payable Salaries payable Deferred revenue Bank loan Common shares Retained earnings Dividends declared Sales revenue Interest income Cost of goods sold Salaries expense Supplies expense Rent expense Depreciation expense Insurance expense Interest expense Income tax expense 10,000 10,000 250,000 49,500 1,180,050 350 920,040 183,910 20,000 11,000 500 700 2,000 1,530,300 1,530,300