Question 3: (50 points) Trial Balance as of December 31, 2016 -0- Accounts Value in s Cash 7,500 Accounts Receivable 12.500 Merchandise Inventory 30,000 Store Supplies 1,500 Office Supplies 450 Prepaid Insurance Expense 2,000 Store Equipment 35,500 Accumulated Depreciation, Store Equipment 7,100 Office Equipment 7.000 Accumulated Depreciation, Office Equipment 1.950 Accounts Payable 1,600 Salaries Payable -0- Income Tax Payable Common Stock 42,000 Retained Earnings 11.500 Sales 360,000 Sales Returns and Allowances 3,600 Purchases 250,000 Purchase Returns and Allowances 1,200 Purchase Discounts 3,000 Transportation - In Expenses 3,500 Sales Salaries Expenses 25,500 Rent Expense, Selling Space 13,500 Store Supplies Expense Depreciation Expense, Store Equipment Office Salaries Expense 28,500 Rent Expense, Office Space 1.800 Office Supplies Expense -0- Insurance Expense -0- Depreciation Expense, Office Equipment Income Tax Expense 5,500 Additional Information: a. Retained Earnings at the beginning of year, were $27,500 and dividends paid during the year were $16,000. b. Store supplies inventory at year end: 8350 c. Office supplies inventory at year end: $160 d. Expired portion of prepaid insurance: $1,550 e. Store equipment was bought on January 2014. Estimated life was 10 years with no salvage value. Straight line depreciation method is applied for store equipment, f. Office equipment was bought on July 2014. Estimated life was 5 years with a salvage value of $500. Straight line depreciation method is applied for office equipment. g. Accrued salaries payable: $350 h. Accrued office salaries payable: $250 i. Additional income tax expense: $750 j. Ending merchandise inventory: $42,500 -0- -0- Required: 1. Using Cost of Goods Sold Model, calculate COGS and journalize the necessary entries (6 points) 2- Journalize the adjustment entries given in the additional information part of the question (9 points) 3. Prepare Adjusted Trial Balance (10 points). 4- Prepare Income Statement (10 points). 5. Prepare Changes in Equity Statement (5 points). 6- Prepare Balance Sheet (10 points)