Exercise 3-12 Preparing a classified balance sheet LO C3 Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation-Trucks Land Accounts payable Interest payable Long-term notes payable Common stock Retained earnings Dividends Trucking fees earned Depreciation expense-Trucks Salaries expense Office supplies expense Repairs expense-Trucks Totals Debit Credit $ 9,300 28,500 7,123 168,000 $ 34,608 43,000 13,300 5,000 48,000 10,210 137,000 12,000 129,000 22, 322 60,736 15,000 11,137 $377,118 $377,118 Use the above adjusted trial balance to prepare Wilson Trucking Company's classified balance sheet as of December 31. WILSON TRUCKING COMPANY Balance Sheet December 31 Assets 0 Liabilities Liabilities Equity Total equity 0 $ 0 Problem 3-2A Preparing adjusting and subsequent journal entries LO P1, P2, P3, P4 Arnez Company's annual accounting period ends on December 31, 2019. The following information concerns the adjusting entries to be recorded as of that date. a. The Office Supplies account started the year with a $2,600 balance. During 2019, the company purchased supplies for $10.738. which was added to the Office Supplies account . The inventory of supplies available at December 31, 2019, totaled $2.288. b. An analysis of the company's insurance policies provided the following facts. policy A B Date of Purchase April 1, 2017 April 1, 2018 August 1, 2019 Months of Coverage 24 36 12 Cost $11,640 10,440 9,240 The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.) c. The company has 15 employees, who earn a total of $2,650 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, 2019. is a Tuesday, and all 15 employees worked the first two days of that week Because New Year's Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2020 d. The company purchased a building on January 1, 2019. It cost $855,000 and is expected to have a $45,000 salvage value at the end of its predicted 25-year life. Annual depreciation is $32.400 e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,600 per month, starting on November 1, 2019. The rent was paid on time on November 1, and the amount received was credited to the Rent Earned account. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15. The tenant has agreed not to fall behind again f. On November 1, the company rented space to another tenant for $2,356 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Uneared Rent account. Assume no other adjusting entries are made during the year Required: 1. Use the information to prepare adjusting entries as of December 31, 2019. 2. Prepare journal entries to record the first subsequent cash transaction in 2020 for parts cand e Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the information to prepare adjusting entries as of December 31, 2019, View transaction fist Journal entry worksheet Journal entry worksheet 1 2 3 4 56 The Office Supplies account started the year with a $2,600 balance. During 2019, the company purchased supplies for $10,738, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2019, totaled $2,288. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal View transaction list Journal entry worksheet