N Accounting Wizards, Inc. provides accounting advice over the Internet. Adjusting entries are performed monthly and closing entries annually on December 31. An unadjusted trial balance dated December 31, 2020, is provided below Cash... Accounts receivable Unexpired insurance Prepaid rent Supplies Furniture and fixtures. Accumulated depreciation: furniture and fixtures Accounts payable.. Notes payable.. Salaries payable. Interest payable Uneamed client revenue Capital stock... Retained earnings.. Client revenue earned Insurance expense. Office rent expense Supplies expense. Salary expense ACCOUNTING WIZARDS, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31,2021 Depreciation expense: furniture and fixtures Office and telephone expense Internet service expense.. Legal expense Interest expense. Miscellaneous expense ww. wwww 450 220 1,600 1,800 900 10,000 6,200 12,000 300 48,000 1,200 $ 6,600 7,100 24,000 2,100 170 600 4,000 2,000 56,700 4,600 7,200 1,800 2,700 4,300 $103,270 $103,270 Data for adjustments: 1. Billed clients $205,000 in client revenue earned for December. 2. Supplies used during December amount to $250 3. On December 1, 2020, the business purchased a four-month insurance policy for $1,600. 4. On December 1, 2020, the business paid $1,800 rent in advance for 6 months. 5. The useful life of the equipment is estimated to be 5 years (or 60 months). The straight-line method of depreciation is used. 6. On May 1, 2020, the company borrowed $24,000 by signing a 12-month, 6 percent note payable to Bank of America. The entire $24,000 plus 12 months' interest is due in full on April 30, 2021. 7. Records show that $380 of cash receipts originally recorded as Unearned Client Revenue had been earned as of December 31. 8. Salaries earned by employees that remain unrecorded and unpaid at December 31 amount to $740. Instructions: 1. Prepare the necessary adjusting journal entries on December 31, 2020.(32 points) 2. Post entries on the ledger accounts (T-accounts). (16 points) 3. Prepare the necessary year-end closing entries and post them in the ledger accounts.(12 points) 4. Prepare an income statement for the year ended December 31, 2020. (10 points) 5. Prepare a statement of retained earnings for the year ended December 31, 2020. (10 points) 6. Prepare a balance sheet dated December 31, 2020.(20 points) N Accounting Wizards, Inc. provides accounting advice over the Internet. Adjusting entries are performed monthly and closing entries annually on December 31. An unadjusted trial balance dated December 31, 2020, is provided below Cash... Accounts receivable Unexpired insurance Prepaid rent Supplies Furniture and fixtures. Accumulated depreciation: furniture and fixtures Accounts payable.. Notes payable.. Salaries payable. Interest payable Uneamed client revenue Capital stock... Retained earnings.. Client revenue earned Insurance expense. Office rent expense Supplies expense. Salary expense ACCOUNTING WIZARDS, INC. UNADJUSTED TRIAL BALANCE DECEMBER 31,2021 Depreciation expense: furniture and fixtures Office and telephone expense Internet service expense.. Legal expense Interest expense. Miscellaneous expense ww. wwww 450 220 1,600 1,800 900 10,000 6,200 12,000 300 48,000 1,200 $ 6,600 7,100 24,000 2,100 170 600 4,000 2,000 56,700 4,600 7,200 1,800 2,700 4,300 $103,270 $103,270 Data for adjustments: 1. Billed clients $205,000 in client revenue earned for December. 2. Supplies used during December amount to $250 3. On December 1, 2020, the business purchased a four-month insurance policy for $1,600. 4. On December 1, 2020, the business paid $1,800 rent in advance for 6 months. 5. The useful life of the equipment is estimated to be 5 years (or 60 months). The straight-line method of depreciation is used. 6. On May 1, 2020, the company borrowed $24,000 by signing a 12-month, 6 percent note payable to Bank of America. The entire $24,000 plus 12 months' interest is due in full on April 30, 2021. 7. Records show that $380 of cash receipts originally recorded as Unearned Client Revenue had been earned as of December 31. 8. Salaries earned by employees that remain unrecorded and unpaid at December 31 amount to $740. Instructions: 1. Prepare the necessary adjusting journal entries on December 31, 2020.(32 points) 2. Post entries on the ledger accounts (T-accounts). (16 points) 3. Prepare the necessary year-end closing entries and post them in the ledger accounts.(12 points) 4. Prepare an income statement for the year ended December 31, 2020. (10 points) 5. Prepare a statement of retained earnings for the year ended December 31, 2020. (10 points) 6. Prepare a balance sheet dated December 31, 2020.(20 points)