The amount currently sitting in prepaids arose due the insurance policy last year. Geoff didn't know how to correct it, so he left it. This year's insurance policy was purchased on November 1 for $9,000. The policy runs from November 1 to October 31 of each year. Geoff didn't know how to record amortization for the year and so left it for you to record. Amortization for all assets is charged using a straight-line method by taking the cost of the asset and dividing it by its expected useful life. The assets have expected useful lives as follows: Computer: 5 years Bakery equipment: 10 years Furniture and fixtures: 20 years . The information shows that Henrietta's owes $400 for a telephone bill and $400 for electricity for December. These amounts have not been recorded yet. Exhibiti Henrietta's Pine Bakery Unadjusted Trial Balance December 31, 2015 Account Name Debit Credit Cash $35,000 Accounts Receivable 5,600 Food Inventory 21,000 Merchandise Inventory 62,500 Prepaids 3,400 Computers 30,000 12,000 Accumulated Amortization - Computers Bakery Equipment 90,000 18,000 Accumulated Amortization Bakery Equipment Furniture and Fixtures 150,000 15,000 Accumulated Amortization - Furniture and Fixtures Accounts Payable 18,000 Accrued Liabilities Interest Payable Dividend Payable Long-term Loan 220,000 Common Shares 50,000 Retained Earnings 22,000 Food Revenue 468,500 Internet Revenue 127,000 Merchandise Revenue 103,000 Food Expense 240,000 Internet Expense 54,000 Electricity Expense 65,000 Telephone Expense 20,000 Interest Expense 0 The amount currently sitting in prepaids arose due the insurance policy last year. Geoff didn't know how to correct it, so he left it. This year's insurance policy was purchased on November 1 for $9,000. The policy runs from November 1 to October 31 of each year. Geoff didn't know how to record amortization for the year and so left it for you to record. Amortization for all assets is charged using a straight-line method by taking the cost of the asset and dividing it by its expected useful life. The assets have expected useful lives as follows: Computer: 5 years Bakery equipment: 10 years Furniture and fixtures: 20 years . The information shows that Henrietta's owes $400 for a telephone bill and $400 for electricity for December. These amounts have not been recorded yet. Exhibiti Henrietta's Pine Bakery Unadjusted Trial Balance December 31, 2015 Account Name Debit Credit Cash $35,000 Accounts Receivable 5,600 Food Inventory 21,000 Merchandise Inventory 62,500 Prepaids 3,400 Computers 30,000 12,000 Accumulated Amortization - Computers Bakery Equipment 90,000 18,000 Accumulated Amortization Bakery Equipment Furniture and Fixtures 150,000 15,000 Accumulated Amortization - Furniture and Fixtures Accounts Payable 18,000 Accrued Liabilities Interest Payable Dividend Payable Long-term Loan 220,000 Common Shares 50,000 Retained Earnings 22,000 Food Revenue 468,500 Internet Revenue 127,000 Merchandise Revenue 103,000 Food Expense 240,000 Internet Expense 54,000 Electricity Expense 65,000 Telephone Expense 20,000 Interest Expense 0