The unadjusted trial balance of Mesa Inc., at the company's year end of December 31, follows:

Additional information and adjustment data:
1. The 12-month insurance policy was purchased and was effective February 1, 2018.
2. There was $750 of supplies on hand on December 31.
3. Depreciation expense for the year is $6,000 for the buildings and $4,500 for the equipment.
4. Salaries of $750 are accrued and unpaid at December 31.
5. Accrued interest expense at December 31 is $735.
6. Unearned revenue of $975 is still unearned at December 31. On the sales revenue that was earned, the cost of goods sold was $2,000.
7. Of the bank loan payable, $9,800 is payable next year.
8. Income tax of $500 is due and unpaid.
9. A physical count of inventory indicates $23,800 on hand at December 31.
10. Common shares of $3,000 were issued during the year.
Instructions
(a) Record the required adjusting entries, assuming the company adjusts its accounts annually.
(b) Set up T accounts, enter the balances from the unadjusted trial balance, and post the adjusting entries prepared in part (a).
(c) Prepare an adjusted trial balance at December 31.
(d) Prepare a multiple-step income statement, statement of changes in equity, and statement of financial position for the year.

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MESA INC. Trial Balance December 31, 2018 Debit Credit Cash Accounts receivable Inventory Supplies Prepaid insurance Land Buildings Accumulated depreciation-buildings $ 17,000 31,700 28,750 2,940 3,000 30,000 150,000 $24,00o Equipment Accumulated depreciation-equipment Accounts payable Unearned revenue Bank loan payable Common shares Retained earnings Dividends declared Sales Sales returns and allowances Sales discounts Cost of goods sold Salaries expense Utilities expense Interest expense Income tax expense 45,000 18,000 33,735 4,000 147,100 13,000 31,425 2,000 265,770 2,500 3,275 171,225 30,950 5,100 8,090 5,500 $537,030 $537,030