Tunstall, Incorporated, a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Cash Accounts receivable Supplies Prepaid insurance Service trucks Accumulated depreciation Other assets Tunstall, Incorporated Unadjusted Trial Balance At December 31 Debit 42,000 Credit 11,600 900 800 19,000 9,200 8,300 3,000 Accounts payable Wages payable Income taxes payable Note payable (3 years; 10% Interest due each September 30) 17,000 Common stock (5,000 shares outstanding) 400 Additional paid-in capital 19,000 Retained earnings 6,000 Service revenue 61,360 Wages expense 16,200 Remaining expenses (not detailed; excludes income tax) 17,160 Income tax expense 115,960 115,960 Totals Data not yet recorded at December 31 included: a. The supplies count on December 31 reflected $300 in remaining supplies on hand to be used in the next year. b. Insurance expired during the current year, $800. c. Depreciation expense for the current year, $3,700. d. Wages earned by employees not yet paid on December 31, $640. e. Three months of interest expense (for the note payable borrowed on October 1 of the current year) was incurred in the current year. f. Income tax expense, $5,540. 2-a. Prepare an income statement (with Operating Income and Other Items sections) that include the effects of the preceding six transactions. 2-b. Prepare a classified balance sheet that include the effects of the preceding six transactions. Complete this question by entering your answers in the tabs below. Required 2a Required 2b. Prepare an income statement (with Operating Income and Other Items sections) that include the effects of the preceding six transactions. Note: Round "Earnings per share" to 2 decimal places. Prepare an income statement (with Operating Income and Other Items sections) that include the effects of the preceding six transactions. Note: Round "Earnings per share" to 2 decimal places. TUNSTALL, INCORPORATED Income Statement For the Current Year Ended December 31 Operating revenues Service revenue $ 61,360 Operating expenses Supplies expense 600 Insurance expense 800 Depreciation expense 3,700 Wages expense 640 Remaining expenses (not detailed) 17.160 Total operating expenses Operating income Other Items: Income taxes expense Income before taxes Net income Earnings per share 22.900 5.540 Prepare a classified balance sheet that include the effects of the preceding six transactions. Note: Amounts to be deducted should be indicated by a minus sign. TUNSTALL, INCORPORATED Current assets Balance Sheet Current liabilities Total current assets $ 0 Total current liabilities $ Total liabilities Stockholders' equity Total assets Total stockholders' equity Total liabilities and stockholders' equity $ $ 0 S Required: 1. Prepare the adjusting entry needed at December 31. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No Transaction General Journal 1 a Supplies expense Supplies 2 b Insurance expense Prepaid insurance 3 C 4 d 5 0 Depreciation expense Accumulated depreciation Wages expense Wages payable Interest expense 00 00 Debit Credit 600 600 800 800 3,700 640 142x) 3,700 640 Interest payable 142 x 6 f Income tax expense 5,540 Income taxes payable 5,540 11.11 5 e Interest expense awarded cored Book Print erences 6 Interest payable 142 142 5,540 Income tax expense 5,540 Income taxes payable Explanation Interest expense: $5,000 principal x 0.12 annual rate x 7/12 of a year-350