PS4 Yellow has been in the video rental business for five years. An unadjusted trial balance at May 31, 2014, follows. PS4 Yellow Unadjusted Triul Balance May 31, 2014 Credit Debit $4,000 6,600 25,600 8.900 Cash Prepaid Rent Video Inventory Display Stands Accumulated Depreciation Accounts Payable Customer Subscriptions Capital Stock Retained Earnings Rental Revenue Wage and Salary Expense Utilities Expense Advertising Expense Totals $5,180 3,260 4,450 5,000 22.170 9,200 2,320 1,240 600 $49,260 $19,260 The following additional information is available: a PS4 Yellow rents a store in a shopping mall and prepays the annual rent of 87,200 on April 1 of cach yur b. The asset account Video Inventory represents the cost of videns purchased from suppliers, When a new title is purchased from a supplier, its cost is debited to this necount. When a title has served its useful life and can no longer be rented (even at a reduced price), it is removed from the inventory in the store. Based on the monthly count, the cost of titles on hand at the end of May is $23.140 Financial Accounting - Impact on Decision Making c. The display stands have an estimated useful life of five years and an estimated salvage value of S500 d Wages and salaries owed but unpaid to employees at the end of May amount to $1,450. e. In addition to individual rentals, l'S4 Yellow operates a popular discount subscription program Customers pay an annual fee of S120 for an unlimited number of rentals. Based on the sia per month eamed on each of these subscriptions, the amount cared for the month of May is $2,440, 1. PS4 Yellow accrues income taxes using an estimated tax rate equal to 30% of the income for the month Questions 1) Set up the T-accounts for each of the accounts listed in the trial balance 2) Based on the additional information listed in alphabets bulles points, adjust the T-accounts 3) Post the month-end adjusting entries in a journal Note: The jourwal showld contain only the adjusting entries frow (a) w (1) 4) Prepare Adjusted Trial Balance 5) Prepare Income Statement 6) Prepare Statement of Retained Eamings. 7) Prepare Balance Sheet 8) Prepare the Closing Joumal. 9) On the basis information you live, does PS4 Yellow prove to be a profitable business. Justify your answer with financial analysis equations seen on Chapter 2