The trial balance and the other information for consulting engineers Mustang Rovers Consulting Limited follow:

Additional Information:
1. Service revenue includes fees received in advance from clients of $6,900.
2. Services performed for clients that were not recorded by December 31 were $7.300.
3. Bad debt expense for the year is $6,300.
4. Insurance expense includes a premium paid on December 31 in the amount of $6,000
for the period starting on January 1, 2018.
5. Equipment is depreciated on a straight-line basis over 10 years. Residual value is $15,000.
6. Mustang gave the bank a 90-day, 12% note for $7,200 on December 1, 2017.
7. Rent is $750 per month. The rent for 2017 and for January 2018 has been paid.
8. Salaries and wages earned but unpaid at December 31, 2017 are $2,598.
9. Dividends of $80,000 were declared for payment on February 1, 2018.
Instructions:
a) From the trial balance and other information given, prepare annual adjusting entries as at December 31, 2017.
b) Prepare an adjusted trial balance for Mustang Rovers as at December 31, 2017.
c) Prepare an income statement for 2017, a balance sheet as at December 31, 2017, and a statement of retained earnings for 2017.
d) Explain how the financial statement in part (c) would change if Mustang Rovers operated as a sole proprietorship, rather than operating with a corporate ownership structure.

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Mustang Rovers Consulting Limited Trial Balance December 31,201'7 Debit $83,700 Credit Cash Accounts Receivable Allowance for doubtful accounts Supplies Prepaid insurance Equipment Accumulated depreciation - equipment Notes payable Common shares Retained earnings Service revenue Rent expense Salaries and wage expense Insurance expense Utilities expense Miscellaneous expense 81,100 $750 1,960 85,000 6,250 7,200 35,010 161.100 100,000 9,750 28,500 18,500 1,080 720 S310.310 S310.310