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7. Jose Vargas opened his executive search service on july 1, 19x1. Some customers paid for his services after they were rendered, and others paid in advance for one year of service. After six months of operation, Jose wanted to know how his business stood The trial balance on December 31 appears below Vargas Executive Search Service Trial Balance December 31, 19x1 $1,713 1,800 413 3,750 Cash Prepaid Rent Office Supplies Office Equipment Accounts Payable Unearned Revenue Jose Vargas, Capital Jose Vargas, Withdrawals Search Revenue Telephone and Utility $ 3,173 1,823 10,000 7,200 10,140 1,260 9,000 ense $25,136 $25,136 1. Enter the trial balance amounts in the Trial Balance columns of the work sheet. Remember that accumulated depreciation is listed with its asset account. Complete the work sheet using the following information: a. One year's rent had been paid in advance when Jose began business. b. Inventory of unused office supplies, $75 c. One-half year's depreciation on office equipment, $300. d. Service rendered that had been paid for in advance, $863. e. Executive search services rendered during the month of December but not yet billed, $270. f Wages earned by employees but not yet paid, $188. 2. From the work sheet, prepare an income statement, a statement of owner's equity and a balance sheet. 3. From the work sheet, prepare adjusting and closing entries and, if required, reversing entries. 4. What is your evaluation of Jose's first six months in business