please answer the 2nd question(s) as pictured. in about 300 words please.

2. What year-end adjustments are needed to revise the income statement? Did your friends do as well their first year as they thought? (p. 64) FINANCIAL REPORTING CASE Engineering Profits After graduating from college last year, two of your engineering-major friends started an Internet consulting practice. They began operations on July 1 and felt they did quite well during their first year. Now they would like to borrow $20.000 from a local bank to buy new computing equipment and office furniture. To support their loan application, the friends presented the bank with the following income statement for their first year of operations ending June 30: goodluz/123RF $ 96,000 Consulting revenue Operating expenses: Salaries $ 32,000 Rent 9.000 $ 96,000 Consulting revenue Operating expenses Salaries $ 32,000 Rent 9,000 Supplies 4.800 Utilities 3,000 Advertising Net income 1,200 (50,000) $ 46,000 The bank officer noticed that there was no depreciation expense in the income statement and has asked your friends to revise the statement after making year-end adjustments. After agreeing to help you discover the following information: a. The friends paid $80,000 for equipment when they began operations. They think the equipment will be useful for five years. b. They pay $500 a month to rent office space. In January, they paid a full year's rent in advance. This is included in the $9.000 rent expense. c. Included in consulting revenue is $13,000 they received from a customer in June as a deposit for work to be performed in August