Question 1: Sam \& Suzie MacNeil began operations for their eye clinic, called MacNeil's Eye Clinic on January 2019. The annual reporting periods ends December 31. An unadjusted trial balance was created on January 1 , 2020 with amounts rounded to nearest thousand dollars. The unadjusted trial balance on January 1 , 2020 was as follows: Transactions during 2020 (rounded to nearest thousand dollars) are as follows: a. Borrowed $22 cash on July 1,2020 , signing a six-month note payable. b. Purchased equipment for $25 cash on July 1,2020 c. Issued additional shares for $5 d. Earned revenues for 2020,$55, including $8 on credit and $47 received in cash. e. Recognized operating expenses for 2020,$30, including $5 on credit and $25 in cash. f. Purchased other assets, $3 cash g. Collected accounts receivable $9 h. Paid accounts payable $10 i. Purchased supplies on account for future use $7 j. Received a \$3 deposit from a hospital for a contract to start January 5, 2021 Data for adjusting journal entries are as follows: I. Supplies of $3 were counted on December 31, 2020 m. Depreciation for 2020, $4 n. Accrued interest on notes payable $1 o. Wages incurred since the December 27 payroll not yet paid, $3 p. Income tax for 2020 was $4 and will be paid in 2021 Required: 1. Setup T-accounts for the accounts on the trial balance and enter beginning balances. 2. Record journal entries for transactions (a) through (k) and post them to the T-accounts. 3. Prepare and unadjusted trial balance. 4. Record and post the adjusting journal entries (I) through (p). 5. Prepare an adjusted trial balance 6. Prepare an income statement, statement of retained earnings and balance sheet. 7. How much net income did MacNeil's Eye Clinic generate during 2020? Is the company financed primarily by liabilities or shareholders' equity