Use the unadjusted trial balance of Electric Bike on December 31, 2020.

	Debit			Credit
Cash	$	7,700
Accounts receivable		22,265
Merchandise inventory		34,200
Store supplies		2,215
Office supplies		915
Prepaid insurance		4,655
Equipment		70,090
Accumulated depreciation, equipment				$	13,255
Accounts payable					7,600
Salaries payable					0
Braeden Li, capital					163,945
Braeden Li, withdrawals		60,000
Interest income					270
Sales					527,000
Sales returns and allowances		4,670
Cost of goods sold		380,760
Salaries expense		95,900
Rent expense		28,700
Supplies expense		0
Depreciation expense, equipment		0
Insurance expense		0
Totals	$	712,070		$	712,070

Required: 1. Record adjusting entries for the following information. a. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a residual value at the end of its life of $14,090. b. The balance in the Prepaid Insurance account was reviewed and it was determined that $325 was unused at December 31, 2020. c. A review of the store supplies on December 31, 2020, revealed a balance on hand of $1,880; a similar examination of the office supplies showed that $710 had been used. d. Accrued salaries payable, $1,600. e. A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $33,440.

2. Prepare a multiple-step income statement showing the expenses in detail.