The unadjusted trial balance of Mesa Inc., at the company's year end of December 31, follows: MESA INC. Trial Balance December 31, 2018 2. There was $750 of supplies on hand on December 31. 3. Depreciation expense for the year is $6,000 for the buildings and $4,500 for the equipment. 4. Salaries of $750 are accrued and unpaid at December 31. 5. Accrued interest expense at December 31 is $735. 6. Unearned revenue of $975 is still unearned at December 31. On the sales revenue that was earned, the cost of goods sold was $2,000. 7. Of the bank loan payable, $9,800 is payable next year. 8. Income tax of $500 is due and unpaid. 9. A physical count of inventory indicates $23,800 on hand at December 31. 10. Common shares of $3,000 were issued during the year. Instructions (a) Record the required adjusting entries, assuming the company adjusts its accounts annually. (b) Set up T accounts, enter the balances from the unadjusted trial balance, and post the adjusting entries prepared in part (a). (c) Prepare an adjusted trial balance at December 31. (d) Prepare a multiple-step income statement, statement of changes in equity, and statement of financial position for the year. Calculate profitability ratios and comment (LO 5) Debit Credit Cash $ 17,000 Accounts receivable 31,700 Inventory 28,750 Supplies 2,940 Prepaid insurance 3,000 Land 30,000 Buildings 150,000 Accumulated depreciation-buildings $ 24,000 Equipment 45,000 Accumulated depreciation-equipment 18.000 Accounts payable 33,735 Unearned revenue 4,000 Bank loan payable 147,100 Common shares 13,000 Retained earnings 31,425 Dividends declared 2,000 Sales 265,770 Sales returns and allowances 2,500 Sales discounts 3,275 Cost of goods sold 171,225 Salaries expense 30,950 Utilities expense 5,100 Interest expense 8,090 Income tax expense 5,500 $537,030 $537,030 Additional information and adjustment data: 1. The 12-month insurance policy was purchased and was effective February 1, 2018