The problem to be resolved: The Belvidere Pharmaceuticals Group is a group of companies with six divisions/branches within your country. The company's Financial Controller resigned suddenly, and you have been asked to prepare the company's draft financial statements for submission to the Auditors for review and preparation of the consolidated financial reports. Below is the trial balance which was extracted from the books of the business on December 31, 2021, the end of the company's financial year. Having been exposed to the principles relating to Financial Accounting you are confident in your abilities to complete the task at hand. Belvidere Pharmaceuticals A-Town Division Trial Balance as of December 31, 2021 A/C Name Cash Accounts receivable Allowance for bad debt Other debtors Trial Balance DR CR 1,500,000 4,000,000 360,000 Merchandise Inventory 4,000,000 Store Supplies 2,000,800 Prepaid Insurance 2,250,000 Prepaid rent 3,200,000 Furniture & Equipment 6,000,000 Accumulated deprecation-Furniture and equipment 2,320,000 Delivery Truck 3,600,000 Accumulated depreciation- Delivery Truck 2.656,282 Accounts payable 1,200,000 Salary payable Interest payable Unearned Sales revenue Note Payable, long term Patty Patterson, Capital Withdrawals Sales revenue Sales discount Sales returns and allowances Cost of goods sold Salaries expense Insurance Expense Utilities Expense 1,200,000 4,500,000 17,600,000 250,000 27,450,000 1,800,000 1,000,000 11,000,000 12,000,000 1,500,000 2,800,000 Rent Expense Depreciation Expense-Furniture and Equipment Depreciation Expense-Delivery Truck Store Supplies Expense Gain/loss on Disposal of Delivery truck Bad-Debt Expense Interest Expense 385.482 57,286,282 57,286,282 57-286-282 57.286282 The following additional information is available December 31, 2021: 1) Store Supplies on hand on December 31, 2021, amounted to $1,200,800. 2) Insurance of $2,250,000 was paid on January 1, 2021, for the 15-months to March 31, 2022 3) Prepaid rent expired December 31, 2021, amounted to $2,000,000 4) The furniture and equipment have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $200,000. 5) The delivery truck cost relates to two Zana Trucks purchased for $1,800,000 each by the company on January 1, 2015. The double-declining balance method of depreciation is used to compute the truck's depreciation charges and their expected useful life is 10 years or 100,000 miles. In 2015, 10,000 miles were driven, 16,500 in 2016, 12,600 in 2017, 16,000 in 2018, 16,500 in 2019, 14,800 in 2020 and 16,800 in 2021. The residual value on both truck is $241,592 each. On September 1. 2021, the company sold one of the trucks to ZM Company for $500,000 on credit. Round off answers to the nearest dollar. 6) Salaries earned by employees and not yet paid amounted to $350,000 on Dec 31, 2021. 7) Accrued interest expense as of December 31, 2021, $210,568. 8) On Dec 31, 2021, $1,000,000 of the previously unearned sales revenue had been earned 9) The aging of the Accounts Receivable schedule on Dec 31. 2021, indicated that the Allowance for Bad Debts should be $420,000 10) A physical count of inventory was done on December 31, 2021, after making all the other adjustments and this revealed that there was $3,800,000 worth of inventory on hand at this point. Other data: 11) The business is expected to make principal payments totalling $1,200,000 towards the loan during the fiscal year to October 31,2022. Required: a) Prepare the necessary adjusting journal entries on Dec 31, 2021. required] [Narrations are not b) Prepare the Adjusted Trial balance for the period ending December 31, 2021. c) Using the Adjusted trial balance, generate the statements requested by Belvidere Pharmaceutical A-Town Division, i.e. A Multiple-step income statement & a Statement of owner's equity for the year ended December 31, 2021 A Classified balance sheet, in report format, at December 31, 2021