$1.$ Prepare a year$-$end work sheet.Additional InstructionsScore: $232/311$Waikiki Surf ShopEnd$-$of$-$Period SpreadsheetFor the Year Ended December $31,20--1$ TRIAL BALANCETRIAL BALANCEADJUSTMENTSADJUSTMENTSADJUSTED TRIAL BALANCEADJUSTED TRIAL BALANCE$2$ACCOUNT TITLEDEBITCREDITDEBITCREDITDEBITCREDIT$3$Cash$30,000\mathrm{.}004$Accounts Receivable$22,500\mathrm{.}005$Merchandise Inventory$56,200\mathrm{.}006$Estimated Returns Inventory$800\mathrm{.}007$Supplies$2,700\mathrm{.}008$Prepaid Insurance$3,600\mathrm{.}009$Land$115,000\mathrm{.}0010$Building$135,000\mathrm{.}0011$Accumulated Depreciation$-$Building $24,000\mathrm{.}0012$Store Equipment$75,000\mathrm{.}0013$Accumulated Depreciation$-$Store Equipment $22,500\mathrm{.}0014$Accounts Payable $15,000\mathrm{.}0015$Customer Refunds Payable $1,100\mathrm{.}0016$Wages Payable $17$Unearned Rent Revenue $33,000\mathrm{.}0018$J$.$ Neff, Capital $240,100\mathrm{.}0019$J$.$ Neff, Drawing$40,875\mathrm{.}0020$Income Summary $21$Sales $404,950\mathrm{.}0022$Sales Returns and Allowances$6,000\mathrm{.}0023$Boat Rental Revenue $24$Purchases$157,500\mathrm{.}0025$Purchases Returns and Allowances $1,200\mathrm{.}0026$Purchases Discounts $1,500\mathrm{.}0027$Freight$-$In$675\mathrm{.}0028$Wages Expense$63,000\mathrm{.}0029$Advertising Expense$11,250\mathrm{.}0030$Supplies Expense $31$Phone Expense$5,250\mathrm{.}0032$Utilities Expense$18,000\mathrm{.}0033$Insurance Expense $34$Depreciation Expense$-$Building $35$Depreciation Expense$-$Store Equipment $36$ $$743,350\mathrm{.}00$$$743,350\mathrm{.}003738$Net Income Points:$45\mathrm{.}5/61$Check My WorkEnter the adjustments in the adjustments columns and extend the balances to the adjusted trial balance columns. Use only amounts and no letter labels.$($a$,$ b$)$The adjustments for merchandise inventory under a periodic inventory system include bringing the inventory balances up$-$to$-$date by removing the beginning inventory and adding the ending inventory per the physical count. Both adjustments are offset in the income summary account.$($c$,$ d$,$ e$)$The Customer Refunds Payable balance should equal the new estimated refunds amount. It is also important to adjust for the related merchandise expected to be returned in the next period. This adjustment is similar to the merchandise inventory adjustment. Remove the existing balance and enter the new balance using Income Summary to offset.$($f $-$ k$)$Use your knowledge of period end accruals and deferrals to record these adjustments in the spreadsheet.Extend the balances to the Adjusted Trial Balance column. Both amounts are shown in the Income Summary account. Next, total the columns and make sure that debits equal credits. Use the line below the totals to subtotal the Income Statement accounts. Add all accounts beginning with Income Summary. Net income is the difference between the debits and credits.