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P4-4A Prepare adjusting entries, adjusted trial balance, financial statements, and closing entries. (LO 1, 3) AP The following is Elbow Cycle Repair Shop's trial balance at January 31, 2017, the company's fiscal year end: ELBOW CYCLE REPAIR SHOP Trial Balance January 31, 2017 Debit Credit Cash $ 3,200 Accounts receivable 6,630 Prepaid insurance 6,420 Supplies 5,240 Land 50,000 Building 190,000 Accumulated depreciation-building $ 11,000 Equipment 27,000 Accumulated depreciation equipment 4,500 Accounts payable 6.400 Unearned revenue 21,950 Mortgage payable 182,000 H. Dude, capital 61,000 H. Dude, drawings 101,100 Service revenue 235,550 Salaries expense 115,200 Utilities expense 12,000 Interest expense 5,610 $522,400 $522.400Additional information: 1. The 12-month insurance policy was purchased on June 1, 2016. 2. A physical count of supplies shows $1,310 on hand on January 31, 2017. 3. The building has an estimated useful life of 50 years. The equipment has an estimated useful life of 9 years. 4. The mortgage payable has a 5% interest rate. Interest is paid on the first day of each month for the previous month's interest. 5. By January 31, 2017, $1,300 of the unearned revenue has been earned. 6. During the next fiscal year, $4,500 of the mortgage payable is to be paid. Instructions (a) Prepare the adjusting entries. (b) Prepare an adjusted trial balance. (c) Prepare an income statement, statement of owner's equity, and classified balance sheet. The owner, Henry Dude, invested $5,000 cash in the business on November 17, 2016. (The investment has been recorded and it is included in the capital account). (d) Prepare the closing entries. TAKING IT FURTHER Henry Dude is concerned that he had to invest cash in the business this year. Based on the information in the financial statements, what do you suggest to Henry