Question 1 (40 marks) A- The following working paper shows the unadjusted and the adjusted trial balance for Farah Company as of December 31, 2019. Unadjusted Trial Balance Adjusted Trial Balance Cash $ 47,640 $ 47,640 Accrued revenue 14,000 22,000 Prepaid insurance (Prepayments) Office equipment 0 2,000 84,000 84,000 Accum Depreciation-Office equip. $ 14,000 $ 20,000 Accounts payable 9,100 9,100 Interest payable (Accruals) 0 1,000 Salaries payable (Accruals) 0 7,000 Long-term notes payable 52,000 52,000 Farah, Capital 40,000 40,000 Farah, Withdrawals 5,000 5,000 Consulting fees earned (Revenues) 123,240 131,240 Depreciation expense-Office equip. 0 6,000 Salaries expense 67,000 74,000 Interest expense 1,200 2.200 Insurance expense 5000 3,000 Rent expense 14,500 14,500 Required: 1- Prepare the adjusting entries that have been made in Farah Company. (11 Marks) 2- Explain the differences between the adjusting entries and other journal entries. Also, explain why adjusting entries are needed. 3- Prepare Farah's income statement for the year ended December 31, 2019. 4- Prepare Farah's balance sheet as at December 31, 2019. (3 Marks) (2.75 Marks) (2.75 Marks)