On January 1, John Paul began an auto repair shop, Paul's Quality Automotive. The following transactions occurred during January: Jan. 1. Paul contributed $80,000 cash to the business in exchange for shares of common stock. 2. Paid $12,000 for a twelve-month insurance policy starting from January 1. 15. Revenues earned during the month included $10,000 cash and $1,000 in accounts. 30. Paid rent for the month $5,000. 30. Paid employees' salaries $2,500. The business uses the following accounts: Cash; Accounts Receivable; Prepaid Insurance; Common Stock; Retained Earnings; Income Summary: Service Revenue; Salaries Expense; Rent Expense; Insurance Expense; Adjustment data: One month insurance has expired. Requirements: 1. Prepare the journal entries, and post to the T-accounts. 2. Prepare an unadjusted trial balance. 3. Prepare the adjusting entries, and post to the T-accounts. 4. Prepare an adjusted trial balance. 5. Prepare the income statement, the statement of retained earnings, and the classified balance sheet