Cayuga Ltd. prepared the following trial balance at the end of its first year of operations ending December 31, 2018. To simplify the case, the amounts given are in thousands of dollars. Other data not yet recorded at December 31, 2018, are as follows:a. Insurance expired during 2018, $4b.?Depreciation?expense?for?2018,?$4c. Wages payable, $8d.?Income?tax?expense,?$9

Required:1.?Prepare?the adjusting?entries?for?2018.2. Show the effects (direction and amount) of the adjusting entries on net earnings and cash.3.?Complete?the trial?balance adjustments and adjusted?columns.4. Using the adjusted balances, prepare a statement of earnings, a statement of changes in equity,and?a statement?of?financial position.5. What is the purpose of "closing the books" at the end of the accounting period?6. Using the adjusted balances, prepare the closing entries for 2018

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Unadjusted Adjustments Adjusted Credit Account Title Debit Credit Debit Credit Debit 38 Cash Accounts receivable Prepaid insurance Machinery (20-year life, no residual value) 80 Accumulated depreciation Accounts payable Wages payable Income taxes payable Contributed capital (4,000 shares) 68 Retained earnings (deficit) 4 Revenues (not detailed) 84 Expenses (not detailed) 32 Totals 169 169