PQR Company Account Balances as of December 31, 2023:

• Cash: $18,000
• Accounts Receivable: $12,000
• Inventory: $22,000
• Accounts Payable: $8,000
• Salaries Payable: $3,000
• Equipment: $35,000
• Accumulated Depreciation: $10,000
• Notes Payable: $15,000
• Common Stock: $20,000
• Retained Earnings: $31,000

Requirements:

1. Prepare a trial balance.
2. Prepare adjusting entries for the following:
   • Depreciation expense: $2,500
   • Salaries expense: $3,500
3. Prepare an adjusted trial balance.
4. Prepare a balance sheet.
5. Discuss the importance of preparing financial statements in accordance with GAAP.