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 Adjusted Trial Balance Trial Balance Cash $ 47,640 $ 47,640 Accrued reveme 14.000 22.000 Prepaid instance (Prepayments) 0 2.000 Office equipment 84.000 84.000 Accu Depreciation Office equip. $ 14.000 $ 20.000 Accouits payable 9,100 9.100 Interest payable (Accruals) 0 1.000 Salaries payable (Aceral) 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 eamed (Revemes) 123.240 131,240 Depreciation expense-Office equip. 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 Marks) 3- Prepare Farah's income statement for the year ended December 31, 2019. (2.75 Marks) 4- Prepare Farah's balance sheet as at December 31, 2019. (2.75 Marks)