Use the following information to answer the questions below. The balances listed below were taken from the ABC Inc.s unadjusted trial balance on January 31st. The companys reporting period began on January 1st . Accounts Receivable $23,000 Accumulated Depreciation 27,000 Accounts Payable 40,000 Cash 22,000 Common Stock 50,000 Equipment 72,000 Land 2,000 Long-term investment 55,000 Prepaid Rent 18,000 Retained Earnings (Beginning) 56,000 Salaries Expense 15,200 Service Revenue 42,200 Supplies 5,000 Utilities Expense 3,000 In addition, assume the following: A. There are five salaried employees. Salaries are paid every Friday for the current week. All past salaries have been paid. Two employees receive a salary of $700 per week and three employees earn $800 per week. January 31st is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of January. B. The prepaid rent account was created when the company signed and pre-paid for a 12 month lease on October 1st of the prior year. On that date, the company paid the full rent for the following twelve months. C. The balance of supplies on hand on January 31st was $2,000. D. The balance of the equipment represents a single asset that has a cost of 72,000 ($0 salvage value) and a useful life of 8 years. The company uses straight-line depreciation.

a. Identify the impact on the accounting equation for any required adjusting entries for the month of January.

b. Prepare a classified (identify current asset and liabilities separately from long term) balance sheet after adjusting entries as of January 31st .