On September 30, 2024, XYZ Ltd. has the following account balances:

• Cash: $25,000
• Accounts Receivable: $10,000
• Supplies: $5,000
• Prepaid Expenses: $1,500
• Machinery: $40,000
• Accumulated Depreciation: $8,000
• Accounts Payable: $15,000
• Short-Term Notes Payable: $5,000
• Bonds Payable: $20,000
• Common Stock: $30,000
• Retained Earnings: $23,500

Requirements:

1. Create a balance sheet with separate sections for current and non-current assets and liabilities.
2. Calculate the working capital.
3. Analyze the company's ability to pay off its short-term liabilities.
4. Record the adjusting entries for:
   • Depreciation expense: $4,000
   • Supplies expense: $2,000
5. Discuss the impact of not recording adjusting entries on financial statements.