Practice 1 On 1 January, 2019, Leons Consultant Ltd had the following balances: Cash, $12,000; Supplies, $8,000; Equipment, $60,000; Accu Depreciation of Equipment, $3,000 ; Deferred Revenue, $5,000; Common Stock, $50,000; and Retained Earnings, $22,000. During 2019, the company had the following transactions: a) Feb 14 Provide services to customers for cash, $65,000, and on account, $35,000. b) Mar 15 Issue additional shares of common stock, $20,000 in exchange for cash. c) Apr 20 Receive cash $30,000 from customer for the transaction in Feb 14. d) Jun 1 Paid Insurance fee for next 12 months in cash, $2,400. e) Jul 30 Purchase supplies on account, $22,000. f) Aug 1 Purchase a new machinery for $10,000 in cash. g) Sep 1 Pay $14,400 for rental space from Sep 1, 2019 Aug 31, 2020. h) Nov 2 Pay salaries to employees for work in 2019, $23,000. i) Dec 30 Pay cash dividends, $2,000. The following information is available on December 31, 2019: 1. Employees are owed an additional $4,000 in salaries. 2. Supplies of $5,000 remain on hand. 3. Rent Expense and Insurance Expense have not been recorded. 4. All of the services associated with the beginning deferred revenue have been performed. 5. Depreciation for Equipment and Machinery are $3,000/year and $1,200/year respectively. Required: 1. Record the transactions that occurred during the year. 2. Record the adjusting entries at the end of the year. 3. Prepare an Income Statement. 4. Prepare a classified Balance Sheet. 5. Prepare closing entries. (No narration is needed for recording entries)