3. Adjusting entries and account classification. (20 points) Selected amounts from Trent Company's trial balance of 12/31/17 appear below: 1. Accounts Payable $ 160,000 2. Accounts Receivable 150,000 3. Accumulated Depreciation Equipment 200,000 4. Allowance for Doubtful Accounts 20,000 5. Bonds Payable 500,000 6. Cash 150,000 7. Common Stock 60,000 8. Equipment 870,000 9. Prepaid Insurance 30,000 10. Interest Expense 10,000 11. Inventory 300,000 12. Notes Payable (due 6/1/18) 200,000 13. Prepaid Rent 240,000 14. Retained Earnings 818,000 15. Salaries and Wages Expense 328,000 (All of the above accounts have their standard or normal debit or credit balance.) Part A Prepare adjusting journal entries at year end, December 31, 2017, based on the following supplemental information a. The equipment has a useful life of 15 years with no salvage value. (Straight-line method being used.) b. Interest accrued on the bonds payable is $15,000 as of 12/31/17. c. Prepaid insurance at 12/31/17 is $22,000. d. The rent payment of S240,000 covered the six months from November 30, 2017 through May 31, 2018 e. Salaries and wages earned but unpaid at 12/31/17, $22,000, Part B. Indicate the proper balance sheet classification of each of the 15 numbered accounts in the 12/31/17 trial balance before adjustments by placing appropriate numbers after each of the following classifications. If the account title would appear on the income statement, do not put the number in any of the classifications. a. Current assets b. Property, plant, and equipment c. Current liabilities d. Long-term liabilities e. Stockholders' equity 4. Adjusting and closing entries. (15 points) The following trial balance was taken from the books of Fisk Corporation on December 31, 2017. Account Debit Credit Cash $ 9,000 Accounts Receivable 40,000 Notes Receivable 10,000 Allowance for Doubtful Accounts $ 1,800 Inventory 34,000 Prepaid Insurance 4,800 Equipment 100,000 Accumulated Depreciation--Equip. 15,000 Accounts Payable 10,800 Common Stock 44,000 Retained Earnings 55,000 Sales Revenue 260,000 Cost of Goods Sold 126,000 Salaries and Wages Expense 50,000 Rent Expense 12.800 Totals $386.600 $286.600 At year end, the following items have not yet been recorded. a. Insurance expired during the year, $2,000. b. Estimated bad debts, 1% of gross sales. c. Depreciation on equipment, 10% per year on original cost, d. Interest at 6% is receivable on the note for one full year. *e. Rent paid in advance at December 31, $5,400 (originally charged to expense). f. Accrued salaries and wages at December 31, 55,800 Instructions (a) Prepare the necessary adjusting entries, (b) Prepare the necessary closing entries