P3-10 (Adjusting and Closing)Presented below is the December 31 trial balance of

P3-10 (Adjusting and Closing)Presented below is the December 31 trial balance of New York Boutique.Instructions(a)Construct T-accounts and enter the balances shown.(b)Prepare adjusting journal entries for the following and post to the T-accounts. (Omit explanations.) Open additional T-accounts as necessary. (The books are closed yearly on December 31.)(1)Bad debt expense is estimated to be $1400.(2)Equipment is depreciated based on a 7-year life (no salvage value).(3)Insurance expired during the year $2550.(4)Interest accrued on notes payable $3360.(5)Sales salaries and wages earned but not paid $2400.(6)Advertising paid in advance $700.(7)Office supplies on hand $1500 charged to Supplies Expense when purchased.(c)Prepare closing entries and post to the accounts.Instructions(a)Prepare a complete worksheet.(b)Prepare a classified balance sheet. (Note:$10000 of the mortgage payable is due for payment in the next fiscal year.)(c)Journalize the adjusting entries using the worksheet as a basis.(d)Journalize the closing entries using the worksheet as a basis.(e)Prepare a post-closing trial balance.