please solve with very detailed steps. correct answer is provided

16 (a) Narrow Corporation has provided you with the below alphabetic list of account balances taken from its 12/31/20X1 trial balance all of which are normal. This list represents all of Narrow's revenue and expense accounts but only a select few of its balance sheet accounts. Please consider the following additional items: (i) On September 1, 20X1, Narrow borrowed $100,000 from the bank. The loan is due in 9 months (June 1, 20X2) and charges 9% interest. All interest is payable at maturity. (ii) In January 202, Narrow's head accountant paid $8,500 for December 20X1 rent. (iii) In January 20X2, the December 20X1 utility bill in the amount of $500 was received in the mail and paid. Considering the above items what is the dollar amount of net income that Narrow should report on its 12/31/20X1 income statement? A. $218,500 B. $220,500 C. $219,500 D. $220,500 E. NOTA 16 (b): Assume Narrow reported $36,000 of cash at 12/31/20X1 on the company's unadjusted trial balance. True or False: Narrow will report $27,000 adjusted cash balance on the 12/31/20X1 balance sheet after considering items (i), (ii), and (iii) above? Key: 1. C 2. D 3. D 3(b). B 4. A 5. C 6. C 7a. E 7b. C 8. D 9. C 10. B 11. C 12. B 13. 16 (a). B 16 (b). False 17. D 18. B