Requirements 1. Using the worksheet, prepare the adjusted trial balance of Kings Ltd. at December 31, 2020. The unadjusted balances have been entered for you. Key each adjusting entry by letter. 2. Prepare the income statement, the statement of retained earnings, and the classified balance sheet. 3. a. Compare the business's net income for December to the amount of dividends paid to the owners. Suppose this trend continues into January. What will be the effect on the business's financial position, as shown by its accounting equation? b. Will the trend make it easier or more difficult for Kings to borrow money if the business gets in a bind and needs cash? Why? c. Does either the current ratio or the cash position suggest the need for immediate borrowing? Explain. Print Done Month-end adjustment data Adjustment data at December 31, 2020. a. Accrued service revenue at December 31, $1,900. b. Prepaid rent expired during the month. The unadjusted prepaid balance of $2,100 relates to the period December through February. c. Supplies used during December, $2,500. d. Depreciation on furniture for the month. The estimated useful life of the furniture is three years. e. Accrued salary expense at December 31 for Monday, Tuesday, and Wednesday. The five-day weekly payroll of $4,900 will be paid on Friday, January 2. Print Done The unadjusted trial balance of Kings Ltd. at December 31, 2020, appears in the solution step below. The Requirement 1. Using the worksheet, prepare the adjusted trial balance of Kings Ltd. at December 31, 2020. The unadjusted balances have been entered for you. Key each adjusting entry by letter. Calculate the adjusted balance of each account, and then total the debit and credit columns in the adjusted trial balance. (Leave unused cells blank. Round your answers to the nearest whole number.) Kings Ltd. Trial Balance Worksheet December 31, 2020 Trial Balance Adjustments Account Debit Credit Debit Credit Cash 7,900 Accounts receivable 15,000 Accrued service revenue 1900 b. Prepaid rent 2,100 The unadjusted trial balance of Kings Ltd. at December 31, 2020, appears in the solution step below. The Supplies Furniture Accumulated depreciation 2,500 36,000 I 3,100 14,000 Accounts payable Salary payable Share capital 26,000 Retained earnings 10,300 Dividends 3,800 Service revenue 18,000 Salary expense 2,600 Rent expense Utilities expense 1,500 The unadjusted trial balance of Kings Ltd. at December 31, 2020, appears in the solution step belo Accounts payable 14,000 Salary payable Share capital 26,000 I Retained earnings 10,300 Dividends 3,800 Service revenue 18,000 Salary expense 2,600 Rent expense Utilities expense 1,500 Depreciation expense Supplies expense 71,400 71,400 Total