Tunstall, inc., a small service company, keeps its records without

P4-7 Recording Adjusting and Closing Entries and Preparing a Balance Sheet and Income StatementIncluding Earnings per Share LO4-1, 4-2, 4-4Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period, December 31, 2014:Account Titles  Debit Credit  Cash          $42,000  Accounts receivable           11,600   Supplies                900  Prepaid insurance               800   Service trucks           19,000  Accumulated depreciation         $9,200  Other assets            8,300  Accounts payable           3,000  Wages payable  Income taxes payable  Note payable (3 years; 10% interest due each December 31)         17,000  Common stock (5,000 shares outstanding)             400  Additional paid-in capital         19,000  Retained earnings           6,000  Service revenue         61,360  Remaining expenses (not detailed; excludes income tax)          33,360   Income tax expense      Totals       $115,960     $115,960 Data not yet recorded at December 31, 2014, included: a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand to be used in 2015.b. Insurance expired during 2014, $800.c. Depreciation expense for 2014, $3,700.d. Wages earned by employees not yet paid on December 31, 2014, $640.e. Income tax expense, $5,540.Required:1 Record the 2014 adjusting entries. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) Required:2-a. Prepare an income statement that includes the effects of the preceding five transactions. (Round “Earnings per share” to 2 decimal places.) Required:2-b. Prepare a classified balance sheet that includes the effects of the preceding five transactions. (Amounts to be deducted should be indicated by a minus sign.)Required:3 Record the 2014 closing entry. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)