MNO Enterprises had these balances as of April 30, 2024:

• Cash: $13,000
• Accounts Receivable: $10,000
• Inventory: $5,000
• Accounts Payable: $7,500
• Salaries Payable: $2,800
• Land: $70,000
• Accumulated Depreciation: $12,000
• Notes Payable: $20,000
• Common Stock: $30,000
• Retained Earnings: $25,700

Requirements:

1. Prepare a trial balance.
2. Make adjusting entries for:
   • Depreciation expense: $3,500
   • Inventory adjustment: $800
3. Prepare an adjusted trial balance.
4. Create a balance sheet.
5. Explain how notes payable impact the balance sheet.