Mojito Corporation Trial Balance December 31, 2018 Credit Debit $30,000 25,000 Cash Accounts receivable Prepaid insurance Supplies 6,000 3,000 45,000 250,000 Land Building Accumulated depreciation- building Equipment Accumulated depreciation- equipment Accounts payable Income tax payable Uncarned revenue $20,000 35,000 26,000 5,000 14,783 45,000 10,000 50,000 150,000 Note payable (Due in 9 months) Note payable (Due in 5 years) Common stock Retained carnings Dividends 13,000 10,000 Sales revenue 350,000 Cost of goods sold Salaries expense Utilities expense Repair expense Income tax pense 190,000 35,000 25,000 15,000 14,783 $683,783 $683,783 This is Mojito's unadjusted trial balance as of December 31, 2018. The following transactions are for needed adjustmetns at December 31, 2018. 1. The balance in prepaid insurance is a one-year premium paid on August 1, 2018. 2. An inventory count on December 31 shows $450 of supplies on hand. 3. Depreciation for the building is calculated at 10% of cost. 4. Depreciation for the equipment is calculated using straight-line, no salvage value over 5 years. 5. Unearned Revenue of $4,000 was earned prior to December 31. 6. Salaries of $2,400 were unpaid at December 31. 7. Unpaid interest related to the Notes Payable is $275. Required: 1. Prepare Adjusting Entries for items 1 -7. 2. Prepare an Adjusted Trial Balance with the updated account balances. 3. Prepare a multi-step Income Statement, Statement of Retained Earnings and classified Balance Sheet. EFIM