Question Bl Martina Company is engaged in purchase and sales of leather products. The company adjusts its accounts monthly, closes its accounts annually on 31 December and adopts a perpetual inventory system. The unadjusted trial balance of Martina Company at 31 December 2017 was shown as follows: Martina Company Unadjusted Trial Balance 31 December 2017 Debit Credit S $ Cash Supplies Unexpired insurance 90,000 7,500 60,000 Accounts receivables 447,600 Inventory 420,150 Equipment 1,470,000 Accumulated depreciation - Equipment 6% Notes payable (due on 31 Mar 2020) Accounts payable 577,500 200,000 144,750 Unearned revenue 100,000 Income taxes payable 187,500 Share capital 525,000 Retained earnings 216,000 Sales revenue 3,420,000 Sales returns 45,000 Cost of goods sold 1,700,000 Salaries expense 551,500 Depreciation expense - Equipment 192,500 Insurance expense 107,000 92,000 Selling expense Income taxes expense 187,500 5,370,750 5,370,750 Information on adjusting items: (1) Supplies on hand on 31 December amounted to $5,000. (2) Estimated income taxes expense for the year amounted to $220,000, which will be paid in March 2018.