Required: 1. Prepare and complete a worksheet.

2. Prepare an income statement for 2021 and a balance sheet as of December 31, 2021.

Required information [The following information applies to the questions displayed below.) The December 31, 2021, unadjusted trial balance for the Wolkstein Drug Company is presented below. December 31 is the company's year-end reporting date. Credits Debits 50,810 29,750 4,600 46,250 102,000 30,600 33,000 Account Title Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation Accounts payable Salaries payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Utilities expense Advertising expense Totals 100,000 29,500 463,000 277,800 92,600 27,600 18,520 6,170 656,100 656,100 The following year-end adjusting entries are required: a. Depreciation expense for the year on the equipment is $10,200. b. Salaries at year-end should be accrued in the amount of $5,960. Required information Account Title December 31, 2021 Adjusting Entries Adjusted Trial Balance Dr. Cr. Dr. Cr. Income Statement Dr. Cr. Balance Sheet Dr. Cr. Unadjusted Trial Balance Dr. Cr. 50,810 29,750 4,600 46,250 102,000 30,600 33,000 Cash Accounts receivable Prepaid rent Inventory Equipment Accumulated depreciation Accounts payable Salaries payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Utilities expense Advertising expense 100,000 29,500 463,000 277,800 92,600 27,600 0 18,520 6,170 Net income Totals 656,100 656,100