WileyPLUS Problems 2-2 The following accounts and amounts (in thousands) were taken from the 2015 nancial statements of Tailwind Instruments, Inc. Common shares $3,588 Cash $1,365 Prepaid insurance 1,196 Accumulated depreciation-equipment 5,226 Equipment 12,344 Accounts payable 1,768 Salaries payable 176 Mortgage payable (due 2025) 1,385 Merchandise inventory 2,691 Retained earnings 8,535 Trading investments 1,944 Accounts receivable 1,190 Income tax payable 52 Prepare a classied statement of nancial position as at December 31, 2015. TAILWIND INSTRUMENTS, INC. Statement of Financial Position December 31, 2015 (in thousands) \fWIleyPLUS Problem 3-6 Indicate the effects (understated, overstated, or no effect) that each of these transactions will have on the total assets, total liabilities and total shareholders' equity on the statement of nancial position and total revenues, total expenses, and prot in the income statement for the month of January. Statement of Financial Positl n Income Statement (A=L+SE) (a) Made a payment for general repairs to the building but mistakenly debited the Buildings (asset) acoount. ' (b) Recorded the collection of an account receivable by debiting Cash and crediting a revenue account. l (c) Correctly recorded revenue earned on account, however, the accounting supervisor did not realize that you have already recorded the transaction ' and recorded it again. (d) Recorded the purchase of a new truck as a debit to Truck Expense and a credit to Cash. (e) Recorded cash payment for utilities by debiting Repairs Expense and crediting Accounts Payable. " " T1" 1'1\" " " " 71' ?? " ? ? f f g a Comprehensive Case 3 (Part Level Submission) Software Advisors Limited was organized on January 1, 2015. The company had the following transactions in the month of January: January 2 Issued 1,020 common shares for $14 each. 3 Borrowed $51,000 from the bank on a long-term loan. 4 Finalized the lease for ofce space and paid the rst month's rent of $3,060. 5 Purchased $40,800 of equipment for $20,400 cash and $20,400 on account. 10 Paid for an advertisement in a local paper, $510. 11 Purchased supplies on account, $1,020. 13 Paid for several advertising spots on the local radio station, $3,060. 15 Paid employees $7,650 for the rst two weeks of work. 17 Summarized and recorded the billings to clients for the rst two weeks of January. Billings totalled $15,300. These amounts are due by the 10th of the next month. 20 Paid $1,020 for the current month's ofce expenses. 24 Received $10,200 from clients in partial settlement of accounts billed on the 17th. 30 Paid annual insurance policy with coverage up to February 1, 2016, for $6,120. 30 Summarized and recorded the billings to clients for the last two weeks of January. Billings totalled $18,360. These amounts are due by the 28th of the next month. 31 Paid employees $7,650 for the last two weeks of work. 31 Made a payment to the bank of $310 for interest on the bank loan and $710 to pay on the amount owing for the bank loan. 31 Paid Canada Revenue Agency $1,220 for an income tax instalment. Journalize the January transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter a for the amounm.) Date Account Titles and Explanation Debit Credit Jan. 2 10