The adjusted trial balance of Sheila and the Screamers as of December 31 2008 follows:Sheila and The ScreamersAdjusted Trial BalanceDecember 31 2008No. Account Title Debit Credit101 Cash $139200124 Office supplies 50000128 Prepaid Insurance 2200167 Equipment 75000168 Accumulated depreciation Equipment $ 34000201 Accounts payable 43000210 Wages payable 20000301 S. Sham Capital 129700302 S. Sham Withdrawals 5000401 Headbanging revenue 220000612 Depreciation expense Equipment 11500623 Wages expense 125000637 Insurance expense 600640 Rent expense 14800650 Legal expense 21400690 Fines and damages expense 2000_________ _________Totals $446700 $446700Required1. Prepare an income statement and a statement of owner s equity for the year 2008 and a classified balance sheet at December 31 2008. There are no owner investments in 2008.2. Enter the adjusted trial balance in the first two columns of a six-column table. Use columns three and four for closing entries and the last two columns for a post-closing trial balance. Insert an Income Summary account as the last item in the trial balance.3. Enter closing entries in the six-column table and prepare journal entries for them.4. Assume for this part only that:a. None of the $600 Insurance expense had expired during the year. Instead assume it is a prepayment of the next period s protection.b. There are no earned and unpaid wages at the end of the year. (Hint: Reverse the $20000 wages payable accrual.)Describe the financial statement changes that would result from these assumptions.