The DEF Compan The DEF Company had started its operations in 2016. The balance sheet for December 31 2016, showed the following accounts balances (there were no other accounts listed): Accounts receivables 45, Unearned revenue 40, Accumulated depreciation 10 Common stock 500, Retained earnings 57, Property plant and equipment (gross) 200, Inventory 75, Accounts payable 40, Cash 309, Prepaid rent (2) During 2017 the following transactions occurred: DEF purchased $375 worth of inventory on account 2 Payments on Accounts payable were $365 Cash sales were S260; credit sales were $360. 4 Ending inventory was $59 5 Depreciation expense was $20 Collections from customers (not including cash sales) were S312. The Prepaid rent had expired during the year. 3 6 7 DEF hired one employee, who worked for the entire year at $4 per month. At the end of the year DEF owes its employee S6. 9 Dividend of S24 was declared and paid during 2017. 10 On the last day of the year, DEF gave a loan of S50 to its twin sister company, ABC 11 Unearned revenue account remained intact during 2017. Required: a. What was the balance of the Prepaid rent account on December 31, 2016? b. Record journal entries for all transactions occurred during 2017 c. Prepare an Income Statement for the year ended December 31, 2017 d. Prepare a Balance Sheet for December 31, 2017