The following is the unadjusted balance sheet of Industrial Networks S.A., as of December 31, 2018

The following information is required to prepare the respective adjusting entries:

1. The depreciation of the building for the year of 2018 is calculated considering a useful life of thirty years, with no scrap value and using the straight-line method.

2. Part of the Industrial Networks S.A. building, which was not occupied; it was rented to another company on September 30, 2018, for six months.

3. Wages in the amount of 1,200,000 earned by employees during the last week of December 2018. The company will pay these wages the first week of 2019.

4. Notes receivable were signed on May 31, 2018, at an annual rate of 18% and principal and interest are expected to be collected on maturity on May 31, 2020.

5. On 07/31/18 the rent was paid in advance with eight months to run.

6. The note payable was signed on August 31, 2018, at a rate of 15%, with principal plus interest due one year later.

7. 60% of the insurance paid in advance expired during the year.

8. 40% of the income for services received in advance was accrued.

REQUIRED: Post the respective adjusting entries as of December 31, 2018 2. 2. Prepare an income statement for 2018. 3. Prepare a statement of retained earnings for 2018. 4. Prepare a Balance Sheet as of 12/31/2018.

Show the formulas to calculate each part.

7.650.000 1.250.000 4.000.000 8.000.000 35.200.000 8.370.000 47.842.000 438.000 Cash Accounts receivable Merchandise inventory Prepaid insurance Prepaid rent Note receivable Land Building Cost of goods sold Salary expense Interest expense Insurance expense Rent expense Utility expenses Advertising expenses Miscellaneous expenses 6.893.500 Accounts payable 9.175.000 Rent received in advance 10.116.000 Accum. deprec. Building 292.000 Documents to be paid 960.000 Paid-in capital 1.800.000 Retained Earnings 16.704.000 Revenues from sales 21.600.000 Income from unearned services 29.565.000 6.228.000 280.000 446.000 1.218.000 648.000 4.925.500 1.899.000 Total 112.750.000 Total 112.750.000