The trial balance of Happy Co. is shown below. The following are the year-end adjustments: 1. 2% of the total account's receivable is doubtful of collection. 2. Depreciation for the year is not yet recognized. The equipment has a 10-year useful life. Happy Co. uses the straight-line method. 3. The notes payable was issued on September 1, 20x1. Interest of 10% is due annually. 4. Happy rents its office space. Monthly rental of P 2,000 is due at the end of each month. Happy Co. has not yet paid its rent for the month of December 31, 20x1. Requirements: a. Prepare the year-end adjusting entries b. Complete the worksheet below Happy Co. Worksheet December 31, 20x1 Adjustments Adjusted Trial balance Unadjusted trial balance Accounts Dr. Cr Dr. Cash 60,000.00 Accounts receivable 50,000.00 Inventory 40,000.00 Equipment 100,000.00 Accumulated depreciation 10,000.00 Accounts payable 5,000.00 Notes payable 24,000.00 Smile, Capital 109,000.00 Service fees 220,000.00 Salaries expense 96,000.00 Rent expense 22 000.00 Totals 368,000.00 368,000.00 Adjustments Bad debts expense Allowance of bad debts Depreciation expense Interest expense Interest payable Rent payable Totals Cr Dr. Income Statement Balance Sheet Cr Dr. Cr Dr. Cr