Simple Company had the following balances on December 31, 2021, BEFORE preparing adjusting entries. Debit Credit Equipment (used in operating Simple Company) Accounts Receivable Merchandise Inventory Goodwill Equipment (rented to another company) $174,000 62,000 57,000 36,000 31,000 Available for Sale Securities Cash 18,000 15,000 Patent 11,000 Debt Retirement Fund 8,000 Trademark 5,000 Prepaid Insurance 4,000 Common Stock, $10 par, 40,000 shares authorized, 15,000 shares issued and outstanding $150,000 Bonds Payable 90,000 Retained Earnings 84,000 Accumulated Depreciation - Operating Equipment 42,000 Accounts Payable Paid in Capital in Excess of Par Premium on Bonds Payable Accumulated Depreciation - Rented Equipment Unearned Sales Cash Dividends Payable Allowance for Doubtful Accounts 19,000 14,000 6,000 6,000 5,000 3,500 1,500 $421,000 $421,000 a Prepare adjusting entries on December 31, 2021, for Simple Company for the following 1 Accrue the interest on the 10-year bonds payable which were sold on May 1, 2022, and pay 8% interest annually on April 30 each year. 2 Estimated $800 of bad debts from customers this year. 3 $3,200 of prepaid insurance was used up this year. 4 Accrued $700 of wages at the end of the year 5 Estimated one year depreciation on the operating equipment assuming a 10 year life and a $12,000 salvage value and the straight line method of depreciation. 6 Merchandise Inventory on December 31, 2021, was $61,000. b Prepare a classified balance sheet for Simple Company as of December 31, 2021, including the effects of your six adjusting entries. You may have created some new balance sheet accounts with your adjusting entries above. Please include these new accounts. Remember if you change income statement accounts in adjusting entries, you also have to change retained earnings. Ignore any income taxes related to the adjusting entries.