Task 2: Sophia has done a great job completing steps 1 through 4 in the accounting cycle: HHEC however, she is still unsure of how to complete steps 5 through 7. As a result, she provides you with HHEC Corp.'s trial balance and a list of internal transactions that occurred during HAPPY HOME the year and asks you to prepare the required adjusting entries, an adjusted trial balance, and HHEC Corp's financial statements. HHEC Corporation Trial Balance December 31, Year 2 Cash 355.000 Accounts Receivable 72,000 Supplies 85,500 Prepaid Insurance 46,000 Building 150,000 Trucks 350,000 Land 275,000 Office Equipment 78,000 Accounts Payable 18,000 Wages Payable 2,500 Common Stock, par value 550.000 Preferred Stock, par value 625 000 Additional paid-in capital, common stock 125 000 Cleaning Revenue 386,250 Dividends 50,000 Rent expense 205,000 Uslities Expense 19,000 Wages expense 21,250 1,706,750 1.706,750 1. Insurance expires at the rate of $2,000 per month 2. 75,000 of supplies are on hand at December 31st 3. Annual depreciation on the Building is 15,000 4. Annual Depreciation on the trucks is $35,000 5. Annual depreciation on the office equipment $7,800 6. At December 31, HJHEC owed its employees 12,000 7. Revenues earned for cleaning services performed but unrecorded and collected by December 31 totaled $22.000 8. On December 31st customers paid $18,000 for the company's 1 year cleaning package beginning on January 1st ANSWERS TOTAL HHEC Corporation AdjustedTrial Balance December 31, Year 2 Adjusted Trial Balance Adjustments Trial Balance Dr Cr. Dr. Cr Dr. Cr. Income Statement DY Cr Balai Dr