Q3.Prepare an adjusting journal entries at year end, December 31, 2020, based on the following supplemental information.(Credit account titles are automatically indented when the amount is entered.Do not indent manually.)

(a).The equipment has a useful life of 15 years with no salvage value. (Straight-line method being used.)

(b).Interest accrued on the bonds payable is $15,072as of 12/31/20.

(c).Prepaid insurance at 12/31/20 is $18,000.

(d).The rent payment of $251,400covered the six months from November 30, 2020 through May 31, 2021

(.e.) Salaries and wages earned but unpaid at 12/31/20, $24,900.

Net sales $795,000 Costs and expenses: Cost of goods sold 569,000 Selling. general, and administrative expenses 14,000 Other, net 30,000 Total costs and expenses 673,000 Income before income taxes 122,000 Income taxes 36,600 Net income $85,400 Additional information: 1. "Selling, general, and administrative expenses" included a usual but infrequent charge of $6,800 due to a loss on the sale of investments. 2. "Other, net\" consisted of interest expense, $12,000, and a discontinued operations loss of $18,000 before taxes. If the discontinued operations loss had not occurred, income taxes for 2020 would have been $42,000 instead of $36,600. 3. Sandhill had 20,000 shares of common stock outstanding during 2020. Using the singlestep format. prepare a corrected income statement, including the appropriate per share disclosures. {Round Selected amounts from Sunland Compa ny's trial balance of 12f3 1f 20 appear below: 1. Accounts Payable $124,600 2. Accounts Receivable 145,500 3. Accumulated DepreciationEquipment 133,300 4. Allowance for Doubtful Accounts 16,600 5. Bonds Payable 502,400 6. Cash 149,300 I". Common Stock 59,?00 3. Equipment 372,350 9. Prepaid Insurance 30,100 10. Interest Expense 3,200 11. Inventory 314,600 12. Notes Payable [clue 6f1f21} 133,900 13. Prepaid Rent 251,400 14. Retained Earnings 317,?00 15. Salaries and Wages Expense 309,400 I[All of the above accounts have their standard or normal debit or credit balance.)