prepare the following:

1. Journal entries for info 1-9

2. adjusting entries for info a-h

3. prepare an adjusting trial balance

4. prepare 3 financial statements (income statement, statement of retained earnings, balance sheet)

The following list of accounts and their balances represents the unadjusted trial balance of Smith Company on November 30, 2019: Credit Debit $ 20,700 15,000 $ 500 54,720 5,000 30,000 20,000 88,000 Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Prepaid Rent Investment in Allen Corp. Bonds Equipment Accumulated Depreciation - Equipment Accounts Payable Unearned Rent Revenue Note Payable Common Shares Retained Earnings Sales Revenue Cost of Goods Sold Salaries Expense Miscellaneous Expenses 14,740 11,370 10,000 50,000 40,000 72,100 222,000 154,400 32,000 890 $420,710 $420,710 Smith company sells ski equipment from its retail store. The company prepares adjusting entries annually. Its year end is December 31. The following activities took place in December 2019: Sales for December were $40,000. At the end of the month $5,000 of these sales remained 1 uncollected. The inventory value (cost) of the December sales was $27,700. No additional inventory was 2 purchased in the month. 3 Accounts Receivable of $12,000 was collected from the previous months. 4 Salaries were $3000 for December, of which $500 was unpaid to staff at month end. 5 Other miscellaneous expenses of $400 were incurred and paid. 6 Smith wrote off a $300 A/R (accounts receivable) in the month. 7 Accounts Payable was paid down in the month with a remaining balance of $3000. Annual interest for the note payable was paid on December 31. The interest rate is 6%. The note payable was outstanding the entire year and is not due until 2022. 8 9 Dividends of $1000 were declared. Dividends will be paid in January 2020. Additional Data: a The Prepaid Insurance account reflects the Company's annual insurance coverage beginning on April 1, 2019 b On September 30, 2019, Smith received $5,000 of rent for leasing excess space for the next six months (Oct -March). This amount was included in unearned rent revenue. There were no additions or disposals of equipment during the year. The regular rate of depreciation is 10% of the equipment cost per year. d Based upon past history, Smith estimates that five percent of the gross Accounts Receivable balance on December 31, 2019 will become uncollectible. The Allen Corp bond investment pays an annual interest rate of 6%. Interest is paid semi-annually on July 31 and January 31. (The bond investment was purchased Aug 1, 2019.) f The Prepaid Rent account includes an opening balance of $6,000 for rent for the first four months of 2019. Additionallyl on April 30, 2019, Smith renewed its lease (May 1- April 30) for $2,000 per month, paying $24,000 in advance and recorded this in prepaid rent. Smith performed a full inventory count at close of business on December 31, 2019. The value of g inventory was $26,840. h Taxes 20% were applied on December 31 and paid in January 2020