Problem 3 (6 points) An inexperienced bookkeeper prepared the following trial balance that does not balance. Rose Company Trial Balance December 31, 2021 Account Debit Credit Cash $9,000 Accounts Receivable 40,000 Notes Receivable 10,000 Allowance for Doubtful Accounts $1,800 Inventory 44,000 Prepaid Insurance 4,800 Equipment 110,000 Accumulated Depreciation - Equipment 15,000 Accounts Payable 10,800 Common Stock 44,000 Retained Earnings 55,000 Sales Revenue 280,000 Cost of Goods Sold 126,000 Salaries and Wages Expense 50,000 Prepaid Rent 12,800 Total $373,000 $440,200 At year end, the following items have not yet been recorded. a. Insurance expired during the year, $2,000. b. Depreciation on equipment, 10% per year on original cost. c. Interest at 5% is receivable on the note for one full year. d. The prepaid rent expense is allocated for 2 years. e. Accrued salaries and wages at December 31, $5,800. Required: 1. Prepare a correct trial balance, assuming all account balances are normal. 2. Prepare the necessary adjusting entries. 3. Prepare the necessary closing entries.