Sophia has done a great job completing steps 1 through 4 in the accounting cycle; however, she is still unsure of how to complete steps 5 through 7. As a result, she provides you with HHEC Corp.s trial balance and a list of internal transactions that occurred during the year and asks you to prepare the required adjusting entries, an adjusted trial balance, and HHEC Corp.s financial statements.

HHEC Task 2: Sophia has done a great job completing steps 1 through 4 in the accounting cycle; however, she is still unsure of how to complete steps 5 through 7. As a result, she provides you with HHEC Corp.'s trial balance and a list of internal transactions that occurred during the year and asks you to prepare the required adjusting entries, an adjusted trial balance, and HHEC Corp.'s financial statements. HAPPY HOME mental Clin HHEC Corporation Trial Balance December 31, Year 2 355,000 72,000 85,500 46,000 150,000 350,000 275,000 78,000 Cash Accounts Receivable Supplies Prepaid Insurance Building Trucks Land Office Equipment Accounts Payable Wages Payable Common Stock, par value Preferred Stock, par value Additional paid-in capital, common stock Cleaning Revenue Dividends Rent expense Utilities Expense Wages expense 18,000 2,500 550,000 625,000 125,000 386,250 50,000 205,000 19,000 21,250 1,706,750 1,706,750 1. Insurance expires at the rate of $2,000 per month. 2. 75,000 of supplies are on hand at December 31st 3. Annual depreciation on the Building is 15,000 4. Annual Depreciation on the trucks is $35,000 5. Annual depreciation on the office equipment $7,800 6. At December 31, HJHEC owed its employees 12,000 7. Revenues earned for cleaning services performed but unrecorded and collected by December 31 totaled $22,000 8. On December 31st customers paid $18,000 for the company's 1 year cleaning package beginning on January 1st ANSWERS TOTAL 0 0 HHEC Corporation AdjustedTrial Balance December 31, Year 2 Trial Balance Dr. Cr. Adjustments Dr. Cr. Adjusted Trial Balance Dr. Cr. Income Statement Dr. Cr. Balance Sheet Dr. Cr