St.Peter Race Shop sells spare partsfor race bikes and also provides services to itsclients. It presents its un-adjusted trial balance below. St.Peter Race Shop Un-Adjusted Trial Balance 12/31/2015 Debit $ 60,000.00 $ 44,000.00 Credit Cash Accounts Receivable Allowancefor Doubtful Accounts Supplies Inventory Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation Equipment Cars Accumulated Depreciation - Cars Building Accumulated Depreciation - Building Accounts Payable Unearned Service Revenue Notes Payable Common Stock Retained Earnings D N dends Sales Revenue Service Revenue Salaries Expense $ 6,000.00 5 17,000.00 5 120,000.00 $ 36,000.00 $ 24,000.00 $140,000.00 $ 90,000.00 $ 33,500.00 $ 14,100.00 5 100,000.00 $ 18,750.00 5 23,500.00 5 12,000.00 5 60,000.00 5 125,000.00 5 40,000.00 $ 5,000.00 149,000.00 $140,000.00 5 25,000.00 Utility Expense Insurance Expense Office Expense Rent Expense Advertising Expense Supplies Expense Miscellaneous Expense 5 18,000.00 5 15,000.00 $ 6,000.00 5 18,000.00 $ 8,000.00 $ 6,000.00 $ 2,850.00 Total 678,350.00 $ 678,350.00 The following adjustments are required at the end of the year 1.00 Services perfor med for clients that have not been biled by December 31, $12,000. 2.00 Bad debt expense for the year is51,000. 3.00 Prepaid Insurance that is expired during the year is $9,000 4.00 Supplies at the end of the year is $7,000. 5.00 Equipment is depreciated for 8 years. Salvage value is $20,000. The company uses straight lineeprecation method. 6.00 Cars aredepr eciat ed for 5 year. Salvage value is $10,000. The company usesstraight lne depreciation method. 7.00 Building is depreciated for 20 years. Salvage value is $25,000. The company usesstraight line depreciation method. 8.00 The notes payable is a 6-month, 8% note, that is due on February 1, 2016. 9.00 Prepaid rent waspaid on April 1 for 2 years. 10.00 Salaries accrued and unpaid is$2,200. 11.00 Unearned service revenue earned $6,000 Required: 1.00 Preparethe adjusting journal entries as of December 31, 2015 2.00 Preparethe 12-column workheet. 3.00 Preparethe Financial Statements