Question 1 (75 pts) The unadjusted trial balance for JKF Inc is provided below. A. Use along with the notes provided below to prepare journal entries to show the accounting treatment for each of the adjustments below. Use the journal entries to prepare the Adjusted Trial Balance B. Use the adjusted Trial Balance to prepare a multi-step income statement, a statement of stockholders equity and a classified balance sheet. 13 The following adjustments were provided Fees of S25,000, received in advance during the year were erroncously recorded in Sales revenue. 2. $50,000 recorded as unearned service was earned during the year 3. Prepaid Insurance expired during the year $30,000. (Admin Expense) 4. Equipment is expected to last for 5 years, Salvage value is $200,000. (Depreciation in CoGS) 5. Office salaries and wages earned but unrecorded and unpaid December 31, 2017, $20,000 Admin Expense) 6. A physical count of inventory on 12/31/2017 shows that $100,000 worth is remaining (CoGS). 7.ide a bad debt allowance of S 50,000. (Selling Exp) 8, Provide income taxes of 20% of income before taxes 9. Dividends of 50,000 was declared (but not paid) for the year. C. For JKF, compute the following ratios (use the definitions provided in the exam). Operating Margin (Operating Income /Net Sales) 2 Sales Margin (Return on Sales) 3 Working Capital 4 Current Ratio 5 Debt to Equity ratio D. Comment on the health of the firm based on the ratios you computed above (I paragraph. This may be typed)