REQUIREME

The entity for this assignment is Superior Painting Company. I will email to you

Superior's $12/31/2023$ unadjusted trial balance. Use the information below and prepare

a partial worksheet like the worksheet on page $82$ of your textbook. However, you will

only add the adjustments and adjusted trial balance columns to the worksheet I started.

Do not add the income statement and balance sheet columns. Use excel to complete

this worksheet $($the adjusting entry columns and the adjusted trial balance columns$).$

Superior prepares adjusting journal entries yearly. The information for your adjusting

entries $($prepare adjusting entries on the worksheet only$)$:

a$.$ The insurance expense balance represents a one$-$year policy purchased on September $1,$

The policy covers the period from September $1,2023,$ through August $31,2024.$

b$.$ The $$11,000$ balance in the prepaid advertising account represents $$5,000$ in advertising

for $2023$ and a $$6,000$ prepayment for advertising in $2024.$

c$.$ The equipment was purchased in $2022$ for $$260,000$ and is being depreciated using the

straight$-$line method over a ten$-$year useful life. The estimated salvage value is $$10,000.$

d$.$ At year$-$end, wages of $$11,000$ should be accrued.

e$.$ The company borrowed $$550,000$ on October $1,2023.$ The principal and interest will be

repaid on March $31,2024.$ The interest rate on this note payable is $6\%.($Round to the

nearest dollar$).$

f$.$ The deferred revenue account represents $$60,000$ in advance payments. As of

December $31,2023,40\%$ of this amount has not yet been earned.

g$.$ Superior has not yet accrued a $$5,000$ utility $($electric$)$ bill for December of $2023.$

Use the adjusted trial balance you completed in part $1$ and prepare the following

financial statements:

a$.$ A $2023$ income statement. Assume no income tax expense for the year.

You do not need to divide operating expenses between selling expenses and

administrative expenses. A sample income statement is provided on page $71$ of your

textbook. Do not include accounts on an statement that are unnecessary. For

example, Superior will not have cost of goods sold on its income statement.