Special Services began operations on 1/1/2018. Their annual reporting period ends 12/31. The beginning trial balance on 1/1/2020 follows: Account title Debit Credit Cash 178,000 Accounts receivable 4,000 Allowance for uncollectable accounts 2,000 Prepaid insurance 2000 Supplies 13,000 Inventory 7,000 Equipment 77,000 Accumulated Depreciation 8,000 Land Accounts payable 16000 Wages payable 3000 Interest payable 1000 Income taxes payable Long-term notes payable Common stock (8,000 shares, $0.50 par value) 4,000 Additional paid-in capital 68,000 Retained earnings 179,000 Service revenue Sales revenue Gain LOSS Cost of goods sold Wages expense Supplies expense Bad debt expense Interest expense Depreciation expense Income tax expense Misc. operating expenses Totals 281,000 281,000Letter Account title and explanation Debit Credit Transactions during 2021: a Cash 30,000.00 Long-term notes payable 30,000.00 To record cash borrowed b Land 13,000.00 Cash 13,000.00 To record land paid Cash 65,000.00 Accounts receivable 53.000.00 Service revenue 118,000.00 To record service revenue earned on cash and on account. Cash (118k-53k) d. Inventory 15,000.00 Cash 15,000.00 To record inventory paid e Cash 17,000.00 Sales revenue 17,000.00 To record inventory sold on cash Cost of goods sold 12,000.00 Inventory 12,000.00 To record cost of goods soldTransactions during 2021: a. 530,000 cash was borrowed on a five-year 10%% note payable, dated 5/1/2021. b. $13,000 cash was paid for land. C. Earned $118,000 in service revenues for 2020. $53,000 on account and the remainder in cash. . Purchased Inventory with $15,000 cash. e. Sold $12,000 of inventory for $17,000 cash. F . "Issued 4,000 additional shares of $0.50 par value common stock for cash at $1 per share on 1/2/2021. g. Incurred $114,000 in miscellaneous operating expenses for 2021, $20,000 on credit and the rest paid in cash. Collected $34,000 owned on account. i. Purchased $17,000 supplies on account. j. Paid $26,000 accounts payable. K. A piece of equipment costing $3,000 was stolen. The insurance company reimbursed the company $1,000. The accumulated depreciation on the equipment amounted to $1,000 Bid on a $2,000 one-year service contract. If accepted, work is to begin on 2/1/2022. m. $103,000 was paid for employee wages. This included wages owed from 2021. n. Declared and paid $2,000 in cash dividends. Adjusting entries: o. 55,000 in supplies remained on 12/31/2021. p. $8,000 depreciation on equipment. q. Interest accrued on notes payable in step a. r. $15,000 in wages were earned but will not be paid until 1/3/2022. $2,000 in income taxes for 2021 will be paid in 2022. t. $4,000 was written off during the year. u. $4,000 of A/R is estimated to be uncollectable. Required: 1. Correct any errors from your paper acc cycle project. 2. Set up a Ledger sheet (Ledger) with T-accounts for the trial balance accounts and enter beginning balances. 3. Add a sheet (Journal) and enter your journal entries for each of the transactions. 4. Post the journal transactions to the Ledger using cell references to your Journal sheet. 5. Use formulas to total the ending balance for each T-account. Leave spaces to add your adjusting entries. 6. Add a sheet named Trial balance and populate it using cell references to your Ledger. Use the SUM formula to total the debit and credit columns and check your trial balances. 7. Journalize and post your adjusting entries. These should change the amounts on your Trial balance so check it. Make any necessary corrections.f . Cash 4,000.00 Common stock 2,000.00 Additional paid-in capital 2,000.00 To record shares issued. Cash (4,000*1), common stock (4,000*.50), additional paid-in capital (4,000-2,000) 9. Misc. operating expenses 114,000.00 Cash 94,000.00 Accounts payable 20,000.00 To record misc. expense incurred. Cash (114k-20k) h. Cash 34,000.00 Accounts receivable 34,000.00 To record owned collected on account i. Supplies 17,000.00 Accounts payable 17,000.00 To record supplies purchased on account j. Accounts payable 26,000.00 Cash 26,000.00 To record accounts payable paid K. Cash 1,000.00 Accumulated Depreciation 1,000.00 Loss 1,000.00 Equipment 3,000.00 To record equipment stolen. Loss (3k-1k-1k)8. Add new sheets for your income statement, statement of stockholder's equity, balance sheet and statement of cash flows. 9. Use cell references to the appropriate account balances on your trial balance to fill in the amounts on your income statement. Use a formula to calculate net income. 10. Use cell references to the appropriate account balances on your trial balance to fill in the amounts on your statement of stockholder's equity. Use a cell reference to transfer your net income. Use formulas to total your ending account balances. 11. Use cell references to the appropriate account balances on your trial balance to fill in the amounts on your balance sheet. Use cell references to transfer the ending balances from your stockholder's equity accounts to the equity section. Use formulas to total assets and total liabilities and stockholder's equity. Confirm that they are equal. 12. Construct your statement of cash flows. You can use numbers without formulas or cell references. Only your totals require the SUM formula on the statement of cash flows.No entry m. Wages payable 3,000.00 Wages expense 100,000.00 Cash 103,000.00 To record wages paid. Wages expense (103k-3k) n. Retained earnings 2,000.00 Cash 2,000.00 To record dividend declared and paid Adjusting entries: plies expense 25,000.00 Supplies 25,000.00 To record supplies used (13k+17k-5k) p. Depreciation expense 8,000.00 Accumulated Depreciation 8,000.00 To record depreciation on equipment g. Interest expense 2,000.00 erest payable 2,000.00 To record accrual interest on notes payable (30k* 10)-(8/12) Wages expense 15,000.00 Wages payable 15,000.00 To record wages incurredS Income tax expense 2,000.00 Income tax payable 2,000.00 To record income taxes for 2021 t Allowance for uncollectible accounts 2,000.00 Bad debt expense 2,000.00 Accounts receivable 4,000.00 To record write off of accounts. Bad debt expense (4k-2k) U. Bad debt expense 4,000.00 Allowance for uncollectible accounts 4,000.00 To record estimated uncollectible accounts