Q1: Presented below is the Trial Balance and Adjusted Trial Balance for Morning Jacket Company on December 31. MORNING JACKET Trial Balance December 31 Before Adjustment Dr. Cr. $ 2,000 2,800 2,100 1,200 18,000 After Adjustment Dr. Cr. $ 2,000 3,800 1,400 650 18,000 $ 1,300 2,700 10,000 Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated depreciation- Equipment Accounts Payable Notes Payable Interest Payable Salaries and Wages Payable Unearned Service Revenue Owner's Capital Owner's Drawings Service Revenue Salaries and Wages Expense Rent Expense Supplies Expense Depreciation Expense- Equipment Interest Expense Totals $ 1,550 2,700 10,000 140 1,270 3,960 ? 4,460 ? 3,200 3,200 8,000 9,500 3,860 500 5,130 1,200 550 250 140 Instructions 1. Owner's capital equals 403,800 and create land account to retain the equality of the trial balance. 2. Prepare in journal form, with explanations, the adjusting entries that explain the changes in the balances from the trial balance to the adjusted trial balance. 3. Using the information from the adjusted trial balance, you are to prepare for the period ending December 31: a. income statement b. owner's equity statement c. balace sheet