part II: Adjusting entries and closing accounts (40 points) Consider the following partial unadjusted trial balance and the information that follows: - Adjusting entries were last made on 12/31/17. - The equipment has no salvage or residual value and has an expected useful life of 10 years. - The prepaid rent contract will expire on 6/30/20. - The long-term bonds have an interest rate of 2% and were issued by Varys Corp. on August 1 , 2018. The first interest payment is due April 30, 2019. - Rhaego Corporation applies a 20% tax rate. Provide (1) appropriate adjusting entries for Khaego Corp., labeling increases and decreases to assets, liabilities and net income, (2) classify each adjustment as a deferral or accrual adjustment