The following are the trial balance and the other information related to Bruce Sheffield, who operates a construction hauling business.

SHEFFIELD

TRIAL BALANCE

DECEMBER 31, 2020

Debit

Credit

Cash$35,500. DEBIT

Accounts Receivable50,800 DEBIT

Allowance for Doubtful Accounts$2,650. CREDIT

Supplies3,080. DEBIT

Prepaid Insurance1,400DEBIT

Equipment34,500DEBIT

Accumulated DepreciationEquipment4,500CREDIT

Notes Payable8,400CREDIT

Owner's Capital45,700CREDIT

Service Revenue103,610CREDIT

Rent Expense6,500DEBIT

Salaries and Wages Expense30,900DEBIT

Utilities Expenses1,320DEBIT

Office Expense860$164,860DEBIT

1.Fees received in advance from clients $4,400

.2.Services performed for clients that were not recorded by December 31, $4,300.

3.Equipment is being depreciated at8% per year.

4.Bad debt expense for the year is $1,490.

5.Insurance expired during the year $500.

6.Sheffield gave the bank a90-day,5% note for $8,400on December 1, 2020.

7.Rent of the building is $500per month. The rent for 2020 has been paid, as has that for January 2021.

8.Office salaries and wages earned but unpaid December 31, 2020, $1,440.

Sheffield withdrew $14,000cash for personal use during the year.

From the trial balance and other information given, prepare nnual adjusting entries as of December 31, 2020.

2-Prepare income statement for 2020.

3-Prepare statement of owner's equity for 2020.

4-Prepare classified balance sheet for 2020.