Your best friend, Claire Cooker, has recently started a gourmet cracker business, Claires Crackers. She has recently lost her bookkeeper due to maternity leave and needs some help with a few transactions from the month of December. You, having successfully completed ACCT 2210 with Professor Kent, are more than confident to help out your friend Claire. She has left you some transactions that may need journal entries to complete (appendix 1). Once the journal entries are completed, she has asked you to prepare an Adjusted Trial Balance so that you can create an Income Statement and Balance Sheet. Luckily she has also given you the Trial Balance to use as a starting point (appendix 2). You are looking forward to showing Claire how you mastered your most recent accounting class. Required: Prepare the journal entries, in good form. (20 points) You will then need to post these journal entries to create an Adjusted Trial Balance (5 points) NOTE FROM JEFF dont spend too much time on this part. You can use the Trial balance given to you (below) and simply add to it on the side. Doesnt need to be pretty, just functional so you can use it for the next part. The bulk of the marks are making the Balance Sheet and Income Statement! Prepare, in good form, a Multi-step Income Statement (20 points) Prepare, in good form, a Balance Sheet (20 points) I only need the income statement and balance sheet?? Appendix 1 Items needing your attention are found below. Prepare, in good form, journal entries to record the transaction or to make a year-end adjusting entry. If no entry is required, identify it by writing no entry required: 1) Claire made sales, on account, to Tom Hunton's for $50,000 December 1st The cost of the sales was $17,500 2) Claire purchased one year of business insurance December 1 for $18,000 The policy started on the December 1st and she paid in full the same day No entry was made to record the insurance purchase 3) December 15th, Tom Hunton's paid 50% of their outstanding balance (from #1) 4) Claire has begun discussions with a local software company to get a new inventory software system starting in February of next year for $35,000 A 25% down payment would be required in January for the new software 5) Claire purchased her dream car for $50,000. She paid $10,000 cash and got a car loan for the remainder December 20th 6) December 28th, Dan's Deli ordered $5,000 of crackers to be delivered in January. Dan paid the full amount of the order December 28th 7) A missing sale to Joe's Diner for $7,500 was missed because Joe will be paying in 30 days 8) December 1st, Claire paid $6,000 for 2 months rent (December and January) The payment was recorded but no adjustment was made for the year end 9) The company incurred $5,000 worth of legal advice December 15th. They will pay the lawyer at a later date. 10) December 30th Claire decided to pay the legal fees from #9 11) Interest revenue was from an investment the company has. It is not a main part of the business.