Fred Schwartz Dance Studio, Inc. adjusts its accounts monthly, but performs closing entries annually on December 31. This is the studio’s unadjusted trial balance dated December 31, 2021. FRED SCHWARTZ DANCE STUDIO, INC. Unadjusted Trial Balance December 31, 2021 Debits Credits Cash $ 10,800 Clients fees receivable 58,000 Supplies 7,000 Prepaid studio rent 5,000 Studio equipment 96,000 Accumulated depreciation: studio equipment $ 45,000 Accounts payable 7,000 Notes payable 25,000 Interest payable 500 Unearned client fees 10,000 Income taxes payable 3,000 Capital stock 40,000 Retained earnings 30,000 Client fees earned 87,000 Supply expense 6,000 Salary expense 19,000 Interest expense 500 Studio rent expense 26,000 Utilities expense 4,200 Depreciation expense: studio equipment 9,000 Income taxes expense 6,000 ________ $247,500 $247,500 Other Data 1. Supplies on hand at December 31, 2021, total $2,500. 2. The studio pays rent quarterly (every 3 months). The last payment was made November 1, 2021. The next payment will be made early in February 2003. 3. Studio equipment is being depreciated over 96 months (8 years). 4. On October 1, 2021, the studio borrowed $25,000 by signing a 12-month, 12% note payable. The entire amount, plus interest, is due on September 30, 2003. 5. At December 31, 2021, $4,000 of previously unearned client fees had been earned. 6. Accrued, but unrecorded and uncollected client fees earned total $700 at December 31, 2021. 7. Accrued, but unrecorded and unpaid salary expense totals $900 at December 31, 2021. 8. Accrued income taxes payable for the entire year ending December 31, 2021, total $8,000. The full amount is due early in 2003. Instructions a. Prepare the necessary adjusting journal entries on December 31, 2021. Prepare also an adjusted trial balance dated December 31, 2021. b. From the adjusted trial balance prepared in part a, prepare a Statement of Profit or Loss for the year ended December 31, 2021 and the Statement of financial position dated December 31, 2021. c. Has the studio’s monthly office rent remained the same throughout the year? If not, has it gone up or down? Explain.