The unadjusted trial balance of Halifax Research at December 31, 2020, appears below:

Adjustment data:

a. Accrued consulting revenue at December \(31, \$ 3,800\).

b. The prepaid balance of \(\$ 12,000\) represented one year of rent. Four months of prepaid rent have been used.

c. Supplies remaining on hand at December \(31, \$ 900\).

d. The estimated useful life of the furniture is 10 years, it will have no value at the end of the 10 years, and the straight-line method of amortization is used. Amortization expense had only been taken for the first 11 months.

e. Accrue salaries expense at December 31 for three days. The five-day weekly payroll is \(\$ 6,000\).
Required 1. Prepare the adjusted trial balance of Halifax Research at December 31, 2020. List expense accounts showing highest to lowest amounts. Sketch T-accounts in your notes to calculate the new balances.
2. Prepare the income statement and the statement of owner's equity for the year ended December 31, 2020, and the balance sheet at December 31, 2020. Report income statement accounts showing highest to lowest amounts. Draw the arrows linking the three financial statements, or write a short description of how they are linked.

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HALIFAX RESEARCH Unadjusted Trial Balance December 31, 2020 Account Title Debit Credit Cash $ 24,200 Accounts receivable 38,500 Supplies 2,400 Prepaid rent 12,000 Furniture Accumulated amortization-furniture 72,000 $ 13,800 Accounts payable 18,400 Salaries payable 0 J. Suzuki, capital 125,000 J. Suzuki, withdrawals 46,000 Consulting revenue 121,500 Salaries expense 32,000 Rent expense 33,000 Utilities expense 12,000 Amortization expense-furniture 6,600 0 Supplies expense Total $278,700 $278,700