Toronado Ltd. reported the following items in its unadjusted trial balance as of 31 December 20x4 for the 20x4 scal year. This trial balance is listed in alphabetical order. Note that this is a partial trial balance and does not include all accounts. Accounts have normal {debit or credit} balances. Administration expense $ 235,600 Accounts payable 76,?00 Accounts receivable 99,?00 Allowance for doubtful accounts (credit) 1,900 Cash dividends declared 30,900 Freightout [delivery to customers} 26,300 Gain on sale of automobile 1,300 Insurance expense 38,160 Interest expense 27,000 Loans receivable, 0% T4,900 Merchandise inventory, 1 January 39,300 Notes payable, 6% 499,000 Purchases 560,300 Salaries and employee benefits 121,400 Sales returns and allowances 42,600 Sales revenues 1,398,?00 Selling expense 34,600 Supplies expense 46,400 Supplies inventory 500 Retained earnings, 1 January 563,200 Unearned revenue 31,900 Utilities expense 65,300 I Other information: The tax rate is 30%, but no ta): has yet been recorded. Closing merchandise inventory is $76,400. Closing supplies inventory is $1,200. The insurance expense represents a payment made on 1 May for a 24-month fire insurance policy. Customers owe $52,900 for goods delivered on 31 December: this amount has not yet been recorded. All sales are on account, except those that are prepaid. Unearned revenue represents all customer deposits received during the year. Of this amount, 50% is still unearned at the end of the year. Bad debt expense is to be recognized as 1% of total sales. Interest on the note payable was last paid and recorded on 31 October. The company owes $3,100 in utilities. Interest on the loan receivable has not been paid or recorded all year. Required: 1. Prepare journal entries to reect the required adjustments. (If no entry is required for e trensactiom'event, select \"Nojoumel entry required\" in the rst account field. Round "Bad debt expense" and \"Income tax expense\" to the nearest $100.] Required: 1. Prepare journal entries to reflect the required adjustments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round "Bad debt expense" and "Income tax expense" to the nearest $100.) View transaction list View journal entry worksheet X No Transaction General Journal Debit Credit 1 a. Cost of goods sold 573,200 Inventory 573,200 2 b. Supplies inventory 700 Accrued accounts payable 700 3 C. Prepaid insurance 12,720 Insurance expense 12,720 4 d. Accounts receivable 52,900 Sales 52,900 5 e. Unearned revenue 12,760 Sales 12,760 6 f. Bad debt expense 17,318 Allowance for doubtful accounts 17,318 7 g. Interest expense 2,988 Interest payable 2.988 8 h. Utilities expense 3,100 Accrued accounts payable 3,100 9 i. Interest receivable 5,992 Interest revenue 5,992 10 j. ncome tax exp 151,782 Income tax payable 151,7822. Prepare an SCI based en the adjusted balances. (Do not round your intermediate calculations.} __ n- __ __ __- __ __ __ __ 2.434.960 s mm 3. Prepare a statement of changes in equity (for retained earnings only) based on the adjusted balances. TORONADO Ltd. Statement of Changes in Equity (Retained Earnings Only) For the Year Ended 31 December 20X4 Retained earnings, 1 January 20X4 Retained earnings, 31 December 20X4 $ 0