The following are the trial balance and other information related to Yorkis Perez, a consulting engineer.

1. Fees received in advance from clients R$6,000.
2. Services performed for clients that were not recorded by December 31, R$4,900.
3. Bad debt expense for the year is R$1,430.
4. Insurance expired during the year R$480.
5. Equipment is being depreciated at 10% per year.
6. Yorkis Perez gave the bank a 90-day, 10% note for R$7,200 on December 1, 2019.
7. Rent of the building is R$750 per month. The rent for 2019 has been paid, as has that for January 2020.
8. Salaries and wages earned but unpaid December 31, 2019, R$2,510.
Instructions
a. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2019. (Omit explanations.)
b. Prepare an income statement for 2019, a statement of owner's equity, and a classified statement of financial position. Yorkis Perez withdrew R$17,000 cash for personal use during the year.

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Yorkis Perez, Consulting Engineer Trial Balance December 31, 2019 Debit Credit R$ 29,500 Cash Accounts Receivable 49,600 R$ Allowance for Doubtful Accounts 750 Supplies 1,960 Prepaid Insurance 1,100 Equipment 25,000 Accumulated Depreciation-Equipment 6,250 Notes Payable 7,200 Yorkis Perez, Capital 35,010 100,000 Service Revenue Rent Expense 9,750 Salaries and Wages Expense 30,500 Utilities Expense 1,080 Office Expense 720 R$149,210 R$149,210