Question 3 (20 marks) Hot Jazz Studio adjusts it account at the end of each year. Before making any year-end adjusting entries at December 31, 2019, the profit of Hot Jazz Studio was $127,000. The following information is available as a source for preparing adjusting entries at December 31, 2019: (i) On October 1, 2019, the studio renewed its rental agreement paying $3,000 cash for six months rent in advance. (ii) Services rendered to clients but not yet billed, $20,000. (iii) On September 1, 2019, the studio borrowed $60,000 by signing a 6-month note payable with interest at the rate of 10% per annum. The entire note, plus 6 months accrued interest, is due on March 1, 2020. (iv) Depreciation, $4,800. (v) Accrued wages payable, $3,900. (vi) Fees collected in advance which have now been earned, $7,100. Required: (a) Prepare the necessary adjusting journal entries at December 31, 2019. (Explanation of Journal Entry is not required) (12 marks) (b) Determine the profit of Hot Jazz Studio after these adjustments by completing the schedule below. Show the effect of each adjustment. (8 marks) Profit before adjusting entries Adjustments: Profit after adjustments