You are required to answer in the Answer Book 7. The unadjusted trial balances of Firedrake Limited (Firedrake) as of December 31, 2022 are presented below: Firedrake Limited Unadjusted Trial Balance December 31, 2022 Debit ($) Credit ($) Accounts Payable 150,000 Accounts Receivable 350,000 Accumulated Depreciation - Equipment (Note 1) 400,000 Administrative Expense 150,000 Cash 560,000 Common Stock 2,000,000 Cost of Goods Sold 700,000 Equipment (Note 1) 1,000,000 Income Tax Expense 50,000 Land 2,520,000 Notes Payable (Note 2) 500,000 Office Supplies (Note 3) 40,000 Other Current Liabilities 200,000 Prepaid Insurance (Note 4) 100,000 Retained Earnings 900,000 Salary Expense 50,000 Sales Revenue 1,400,000 Utilities Expense 30,000 A review of the ledger of Firedrake produces the following data pertaining to the preparation of adjusting entries: Note 1: Note 2: Note 3: Note 4: The equipment was purchased on January 1, 2020, which has an expected 5-year useful life with no residual value. Straight-line depreciation is used. The note payable was issued on September 1, 2022. It is a 12%, 6-month note. At December 31, 2022, $30,000 of office supplies are on hand. The insurance was purchased on April 1, 2022 for $100,000. This policy has a term of 10 months. Required: (a) Prepare the necessary adjusting entries on December 31, 2022. (b) Calculate the ending balance of Retained Earnings as of December 31, 2022