Question 1 (Continued) Reed Company Statement of Financial Position December 31, 2020 $ 52,500 (11.900 $ 40,600 1,050 7,000 490 2,240 42.000 Assets Property, plant, and equipment Equipment. Less: Accumulated depreciation-equipment. Current assets Prepaid insurance Prepaid Rent. Supplies ....... Accounts receivable Cash. Total assets. Equity and Liabilities Equity Share capital-ordinary Retained earnings. Current liabilities Accounts payable. Unearned Service Revenue Salaries and Wages payable. Total equity and liabilities 52,780 $93.380 $21,000 49,980 $70,980 7,000 10,500 4,900 22.400 $93.380 Required: (a) Based the information given above, prepare adjusting entries for the Reed Company on December 31, 2020. You may omit descriptions for the journal entries. (7 marks) (b) Based on the information given above, prepare the income statement for Reed Company on December 31, 2020. (4 marks) (c) Based on the information given above, prepare the closing entries for the Reed Company on December 31, 2020. You may omit descriptions for the journal entries. (4 marks) Question 1 (Continued) Reed Company Statement of Financial Position December 31, 2020 $ 52,500 (11.900 $ 40,600 1,050 7,000 490 2,240 42.000 Assets Property, plant, and equipment Equipment. Less: Accumulated depreciation-equipment. Current assets Prepaid insurance Prepaid Rent. Supplies ....... Accounts receivable Cash. Total assets. Equity and Liabilities Equity Share capital-ordinary Retained earnings. Current liabilities Accounts payable. Unearned Service Revenue Salaries and Wages payable. Total equity and liabilities 52,780 $93.380 $21,000 49,980 $70,980 7,000 10,500 4,900 22.400 $93.380 Required: (a) Based the information given above, prepare adjusting entries for the Reed Company on December 31, 2020. You may omit descriptions for the journal entries. (7 marks) (b) Based on the information given above, prepare the income statement for Reed Company on December 31, 2020. (4 marks) (c) Based on the information given above, prepare the closing entries for the Reed Company on December 31, 2020. You may omit descriptions for the journal entries. (4 marks)