Can We Help?,a Local Walk-In Medical Practice,had the Following Account

Can We Help?,a local walk-in medical practice,had the following account balances at December 31,Year 1:
$\begin{array}{lrlr}\text { Building } & \$ 480,000 & \text { Accumulated Depreciation -Bldg } & \$ 12,000 \\\text { Cash } & \$ 20,000 & \text { Common Shares } & \$ 300,000 \\\text { Supplies } & \$ 2,000 & \text { Retained Earnings } & \$ 190,000\end{array}$
During Year 2,the following transactions occurred:
1. On March 1, the company purchased a one-year mal-practice insurance policy for $\$ 12,000$ cash.
2. On July 1, the company borrowed $\$ 50,000$ cash from First American Bank. The interest rate on the note payable is $8 \%$ . Principal and interest is due in cash in one year.
3. Employee salaries in the amount of $\$ 23,000$ were paid in cash.
4. At the end of the year, $\$ 1,000$ of the supplies remained on hand.
5. The company earned $\$ 100,000$ in consulting revenue during Year 2 in cash.
6. At December $31, \$ 6,000$ in employee salaries was accrued.
7. On December 31 , the company received $\$ 10,000$ in cash representing advance payment for services to be provided in February Year 3.
8. Annual depreciation on the building is based on a useful life of 20 years and no salvage value
Required:
A) Determine the effect on the accounting equation of the preceding transactions including any related year-end adjusting entries that may be required. Hint: It may be helpful to create a table to reflect the increases and decreases in accounts.
B) Prepare an income statement for Year 2 ignoring income taxes.
C) Prepare a statement of retained earnings for Year 2 assuming no dividends were paid.
D) Prepare a classified balance sheet at December 31, Year 2.