Problem 2 Chapters 2-3 Cumberland City Cycles, Incorporated (CCC) rents bicycles of all kinds for use on the biking paths up and down the Cumberland River. . The Excel file, Problem 2 Excel Template, includes tabs for: The Unadjusted Trial Balance, T-accounts, with the unadjusted amounts, An outline for the Adjusted Trial Balance, An automatically filled set of financial statements. Review the tabs carefully. The Adjusted Trial Balance is equal to the Unadjusted Trial Balance at this point-no adjusting entries have been made. The financial statements are complete- with amounts before adjustments. Note that Net Income is $3,050 now. Watch what happens as you enter the adjusting entries. Below are the necessary adjusting entries that are to be recorded. ALL adjustments are made on an annual basis each December 31. Using the information below, and the amounts on the Unadjusted Trial Balance, prepare the adjusting entries in the T-accounts on the Excel spreadsheet. (A journal page is provided on the following page if you prefer to make the entries in general journal form first and then put into the T-accounts.) Round all amounts to whole dollars. a) CCC counted the inventory of supplies and there is $200 on hand. b) On November 1, 2021, CCC paid in advance $3,000 for 4 months' rent on a small warehouse to store some of the bicycles for the winter months. c) On March 1, 2021, CCC paid in advance $1,200 for a one-year insurance policy. d) The equipment was purchased on January 1, 2021 for $10,000. The equipment has a useful life of 9 years with a residual value of $1,000. (Use the straight-line depreciation method.) e) A local youth group made an agreement with CCC for a winter-season pass for its members. They paid CCC $400 in advance for bicycle rentals from November 1, 2021 through March 1, 2022 f) The note payable was issued on August 1, 2021. The note is a one-year, 9% note for $10,000. Record the adjustment for the interest that has accrued. Adjusting Entries DR CR a) b) c) d) e) f)