Problem #1 Red Apple Company, a sole proprietorship, was created in 2008. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2020. Red Apple Company Trial Balance December 31, 2020 Unadjusted Adjusted Dr. Cr. Cr. $11,000 $11,000 Accounts 20,000 21,500 Receivable Supplies 8,400 5,000 Equipment 60,000 60,000 Accumulated $28,000 $35,000 Depreciation Equipment Dr. Cash 5,000 5,000 7,000 5,600 Accounts Payable Unearned Advertising Revenue Salaries and Wages Payable Common Stock Retained Earnings Advertising Revenue Salaries and Wages Expense Depreciation Expense Supplies Expense Rent Expense 10,000 4,800 58,600 1,300 10,000 4,800 61,500 10,000 11,300 7,000 3,400 4.000 $113.400 S113.400 4.000 $123.200 $123.200 Instructions: a. Journalize the annual adjusting entries that were made. b. Prepare an income statement for the year ending December 31, 2020, and a balance sheet at December 31