Preparing Adjusting Entries (FSET) Fischer Card Shop is a small retail shop. Fischer's balance sheet at year-end 2021 is as follows: The following information details transactions and adjustments that occurred during 2022. 1. Sales total $218,775 in 2022 ; all sales were cash sales 2. Inventory purchases total $114,300 in 2022 ; at December 31,2022 , inventory totals $21,750. Assume all purchases were made on account. 3. Accounts payable totals $6,150 at December 31, 2022. 4. Annual insurance premiums of $36,000 were paid on March 1,2022 , covering the next 12 months. The balance in prepaid insurance at December 31, 2021, was the balance remaining from the advance premium payment in 2021. 5. Wages are paid every other week on Friday; during 2022, Fischer paid $18,750 cash for wages. At December 31, 2022, Fischer owed employees unpaid and recorded wages of $525. 6. Depreciation on equipment totals $2,550 in 2022