Below was the Trial Balance of Shell Service Station on 31 December 2019 before the adjustments: Shell Service Station Trial Balance on 31 December 2019 (before the adjustments) S Cash Accounts Receivable Shop supplies Unexpired insurance Tools and equipment Accumulated depreciation: tools and equipment Building Accumulated depreciation: building Land Notes payable Accounts payable Income taxes payable Unearned rent revenue Capital stock Retained earnings Dividends Repair service revenue Advertising expense Wages expense Supplies expense Depreciation expense: building Depreciation expense: tools and equipment Utilities expense Insurance expense Income taxes expense 18592 6500 1800 4500 12000 36000 52000 14000 3900 56800 6900 1500 2200 19400 13500 22608 272200 2200 1500 4000 2690 1560 9000 80000 0 171250 272200 Following were the adjustments found on December 31: 1. On November 30, the balance of Shop supplies was $1,800 and the Supplies expense account was $6,900 which represented the cost of supplies used through November. The Shop supplies remained on hand at December 31 was $1,200. 2. The insurance expense for December was $1,500. 3. The building was bought on 22 January 2019 with an estimated remaining useful life of 20 years. Adjustment on the depreciation for the month of December was needed. 4. Shell earned the rent of December at $3,000 prepaid by Carlos. 5. Time cards indicated that since the last payroll date, employees worked a total of 130 hours not yet recorded in the payable account. Shell's wage expense averaged about $15 per hour. 6. On February 28, 2020, Shell ought to pay the bank $4,090. This would represent the $4,000 amount borrowed, plus $90 interest ($4,000 x 0.09 x 3/12). The $90 interest charge covered a period of 3 months. Although no payment was made until February 28, 2020, interest expense was incurred (or accrued) at a rate of $30 per month. 7. In December, Shell entered into an agreement to perform routine maintenance on several vans owned by Airport Shuttle Service. Shell agreed to maintain these vans for a flat fee of $1,500 per month, payable on the fifteenth of each month. Shell would receive the first payment on 15 January 2020. 8. Shell earned income before income tax of $66,570. The income tax for the entire year is $26,628. Given that income tax expense recognized through November 30 amounted to $22,608, an additional $4,020 in income taxes expense ought to have accrued during December. Prepare the following: a. Journal entries for the adjustments b. Statement of Comprehensive Income showing the retained earnings after adjustments c. Statement of Financial Position after adjustments