Imperial Trucking Inc. is a small trucking company that carries freight between centres in central Canada and the northeastern United States. The Johnson family of London owns Imperial Trucking Inc. but professional managers manage it. One member of the Johnson family serves as the chair of the board of directors. No other family members are actively involved with Imperial Trucking Inc.

Imperial Truckings balance sheet for December 31, 2016, the companys year-end, is shown below. The company uses its financial statements for tax purposes, to show to the holders of the long-term notes that the company issued to finance the purchase of some of its trucks, and to provide information to the shareholders.

Imperial Trucking Inc. Balance Sheet As of December 31, 2016
Assets		Liabilities and Shareholders Equity
Cash	$ 77,340	Accounts payable	$ 42,220
Accounts receivable	81,500	Taxes payable	15,000
Prepaid insurance	18,000	Wages payable	10,000
Current assets	176,840	Customer deposits	27,000
Capital assets	465,000	Interest payable	11,900
Accumulated depreciation	(201,700)	Current liabilities	106,120
		Long-term notes payable	140,000
		Common shares	80,000
		Retained earnings	114,020
	$440,140		$440,140

It is now January 2018. Imperial Trucking Inc. needs to prepare its financial statements for the year ended December 31, 2017. You have obtained the following information about the fiscal year just ended:

1. Shipping revenue for the year was $1,065,225. Imperial Trucking gives credit to all its customers and there were no cash sales during the year.
2. Imperial Trucking Inc. purchased $275,000 worth of fuel during the year. All purchases were on credit. At the end of 2017, Imperial Trucking hadnt been billed for an additional $10,000 of fuel that it purchased.
3. Imperial Trucking Inc. incurred maintenance costs of $125,000 during 2017. At the end of 2017, Imperial Trucking owed mechanics $8,000. (The $8,000 owed is included in the $125,000.)
4. Imperial Trucking Inc. paid wages and bonuses of $475,000 to employees. At December 31, 2017, Imperial Trucking owed employees $27,500.
5. During the year, Imperial Trucking Inc. collected $1,075,000 from customers.
6. Imperial Trucking Inc. paid its fuel suppliers $250,000 during 2017.
7. During the year, Imperial Trucking Inc. paid the taxes it owed at the end of 2016. It also paid $11,000 in instalments on its 2017 income taxes. Its estimated that Imperial Trucking owes an additional $12,000 in income taxes for 2017.

8. The deposits reported on the 2016 balance sheet pertained to customers who were perceived to be high risk to whom Imperial Trucking Inc. wasnt prepared to offer credit. These customers were required to give deposits against shipping to be done during 2017. These customers used shipping services during 2017 in excess of the amount of the deposits. Imperial Trucking Inc. decided in 2017 to offer credit to these customers. The deposits are not included in the other revenue recognized in the year.
9. Members of the Johnson family sometimes used Imperial Trucking employees for personal work at their homes and cottages. Usually, the work was done on weekends and the employees were paid at overtime rates. The company pays the employees wages for the work done for the family members and accounts for the cost as a wage expense. The wages paid for work done on behalf of Johnson family members was $11,000.
10. During 2017, Imperial Trucking Inc. purchased a new truck for $98,000 in cash.
11. Depreciation expense for 2017 was $48,000.
12. Prepaid insurance pertains to insurance on its truck fleet and premises. During 2017, Imperial Trucking Inc. used $15,000 of insurance that was recorded as prepaid on December 31, 2016. In late 2017, it purchased and paid for insurance for 2018. The insurance cost $21,000.
13. During the year, Imperial Trucking Inc. paid $11,900 in interest to the holders of the long-term notes. Interest is paid annually on January 2. In addition to the interest payment, Imperial Trucking paid $20,000 on January 2, 2017 to reduce the balance owed on the long-term notes. The interest rate on the notes is 8.5 percent.
14. Imperial Trucking Inc. paid $75,000 in cash for other expenses related to operating the business in fiscal 2017.
15. Imperial Trucking Inc. paid dividends of $55,000 to shareholders.

Required:

1. Enter each of the transactions onto an accounting equation spreadsheet. You can use a computer spreadsheet program or create a spreadsheet manually, although the computer spreadsheet will probably be easier because you will be able to correct mistakes more easily. Create a separate column on the spreadsheet for each account. Make sure you prepare all adjusting entries and the closing entry to the spreadsheet. Indicate whether each entry to the spreadsheet is a transactional entry, an adjusting entry or a closing entry.