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Sunshine Company began operations on January 1, 2020. In its first year, the following transactions occurred: 1. Issued common shares for $317.000 cash. 2. Borrowed

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Sunshine Company began operations on January 1, 2020. In its first year, the following transactions occurred: 1. Issued common shares for $317.000 cash. 2. Borrowed $51,000 from the bank for a five-year term. 3. Purchased equipment for $201.000 cash. 4. Purchased supplies, on account, for $8,000 5. Sales on account amounted to $104,000. 6. Collected $88,000 from customers for services provided 7. Paid wages of $32,000 to employees. 8. Paid $20,500 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 yea ended December 31, 2020, 1. The bank loan was taken out on January 154 and has an interest rate of 9%. 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 $14,000. The company uses the straight-line depreciation method. 3. Wages in the amount of $2.200 were owed at year end. 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 1" and has an interest rate of 9% Interest is due January 1" of the following year. 2. The equipment was purchased on January 1" and has an estimated useful life of 10 years and a residual value of $14,000. The company uses the straight-line depreciation method Wages in the amount of 52,200 were owed at year end, 4. Rent in the amount of $11.500 was due at year end but was not recorded or paid. 5. A physical count at year end revealed that only $2,000 of the supplies remained on hand, Question 2 of 7 - /10 E Prepare the necessary adjusting journal entries to record each of the above adjustments. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) No. Account Titles and Explanation Debit Credit 1 2. 3. Prepare an Adjusted Trial Balance. (Do not list those accounts that have zero ending balance.) Sunshine Company Adjusted Trial Balance December 31, 2020 Debit Credit $ Totals

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