RST Corporation provided these account balances on February 28, 2024:

• Cash: $20,000
• Accounts Receivable: $18,000
• Inventory: $12,000
• Accounts Payable: $9,000
• Salaries Payable: $3,200
• Building: $80,000
• Accumulated Depreciation: $15,000
• Mortgage Payable: $40,000
• Common Stock: $25,000
• Retained Earnings: $40,800

Requirements:

1. Prepare a trial balance.
2. Journalize adjusting entries for:
   • Depreciation expense: $5,000
   • Inventory adjustment: $2,000
3. Prepare an adjusted trial balance.
4. Create a statement of owner's equity.
5. Describe the purpose of a statement of owner's equity.