Sunshine Company began operations on January 1, 2020. In its first year, the following transactions occurred: 1. Issued common shares for $300,000 cash. 2. Borrowed $50,000 from the bank for a five-year term. 3. Purchased equipment for $200,000 cash. 4. Purchased supplies, on account, for $5,000. 5. Sales on account for services provided amounted to $110,000. 6. Collected $80,000 from customers for services provided. 7. Paid wages of $30,000 to employees. 8. Paid $20,000 for utilities (telephone, electricity, heat, & water). For Sunshine Company, the following adjustments are required prior to them being able to prepare financial statements for the year ended December 31, 2020. 1. The bank loan was taken out on January 1st and has an interest rate of 8%. Interest is due January 1 of the following year. 2. The equipment was purchased on January 1st and has an estimated useful life of 10 years and a residual value of $10,000. The company uses the straight-line depreciation method. (Use Bank Loan Payable) 3. Wages in the amount of $1,000 were owed at year end. 4. Rent in the amount of $10,000 was due at year end but was not recorded or paid. 5. A physical count at year end revealed that only $1,000 of the supplies remained on hand.