You are the accountant for Camino Jet Engines, Inc., which began operations several years ago. Below is the company's unadjusted trial balance as of December 31, 200x. The company plans to issue ANNUAL. financial statements for the year Unadjusted Trial Balance Account Title Debits Credits Cash $ 349,000 Equity investments 650,000 Accounts receivable 125,000 Prepaid insurance 168,000 Machinery and equipment 920,000 Building 750,000 Accumulated depreciation $ 200,000 Land 375.000 Intangible assets 300,000 Accumulated amortization 60.000 Accounts payable 217.000 Deferred revenue 540,000 Notes payable 420.000 Common stock 2,175,000 Retained earnings 234.000 Repair services revenue 330,000 Other income 141,000 Salaries expense 475.000 Utilities expense 20.000 Interest expense Restructuring costs 185,000 Totals $ 4,317,000 $4,317,000 Instructions The company must record a full year of depreciation on its Adj 1 - building that cost $750,000. The building has an estimated Dec. 31 useful life of 20 years with no salvage value. The company depreciates buildings on a straight-line basis. The company must record a full year of depreciation on Adj 2 - equipment that cost $500,000. The equipment has an Dec. 31 estimated useful life of 8 years with no salvage value. The company depreciates equipment on a straight-line basis. On May 1 of this year, the company bought machinery for $420,000. The company must record a partial year of Adj 3 depreciation on this machinery. The machinery has an Dec. 31 estimated useful life of 4 years with no salvage value. The company depreciates machinery on a straight-line basis. With the purchase of the machinery above, the company signed a note for $420,000. The note payable is dated May 1 of this year and has an annual interest rate of 5%. The terms of the Adj 4 - note require annual principal payments of $210,000 plus Dec. 31 accrued interest for each of the next two years. The first payment will be due April 30 of next year. The second payment will be due on April 30 one year after that. The company must record the proper adjusting entry for interest expense. In a prior year, the company paid $168,000 in cash for a 24 Adj 5 - month insurance policy which will end on March 31 next year. Dec. 31 The company must record an adjustment for 12 months of insurance expense. As of December 31. the company's employees had worked Adj 6 - several days but will not be paid until the next month. An Dec 31 adjustment for accrued salaries in the amount of $9.135 should be recorded at December 31. With the purchase of the machinery above, the company signed a note for $420,000. The note payable is dated May 1 of this year and has an annual interest rate of 5%. The terms of the Adj 4 - note require annual principal payments of $210,000 plus Dec 31 accrued interest for each of the next two years. The first payment will be due April 30 of next year. The second payment will be due on April 30 one year after that. The company must record the proper adjusting entry for interest expense. In a prior year, the company paid $168,000 in cash for a 24 Adj 5 - month insurance policy which will end on March 31 next year. Dec. 31 The company must record an adjustment for 12 months of insurance expense. As of December 31, the company's employees had worked Adj 6. several days but will not be paid until the next month. An Dec. 31 adjustment for accrued salaries in the amount of $9,135 should be recorded at December 31. on October 1 of this year, a client paid the company $540,000 Adj 7 in cash for monthly maintenance services to be provided over a Dec. 316-month period. The company must record the proper adjusting entry for the revenue earned through December 31 Required: In the space below, prepare adjusting journal entries to record the adjustments above for December 31. The preferred format of your journal entry should be as follows: Joumal Entry Example Account Name Debit Amount Credit Amount Part B - T-accounts: Update the unadjusted balances based on your adjusting entries. Use T-accounts to st accounts using Word or Excel. A picture of handwritten T-accounts is also acceptable. Complete the adjusted trial balance schedule below. Enter the amounts from your updated T-accounts after posting your adjustments from Part B. Enter D or C to indicate whether the number is a debitor credit. Please DO NOT spell out the words debit or credit Add up all your debits and credits and enter the respective totals at the bottom of the schedule. Remember that if debits do not equal credits, you have made a mistake somewhere. Account Title Trial Balance Schedule Enter D (Debit) or Account Balance C (Credit) Cash Equity investments Accounts receivable Prepaid insurance Machinery and equipment Building Accumulated depreciation Land Intangible assets Accumulated amortization Accounts payable Interest payable Salaries payable Deferred revenue Notes payable Common stock Retained earnings Repair services revenue Other income Salaries expense Other income Salaries expense Insurance expense Utilities expense Depreciation expense Interest expense Restructuring costs Total Debits Total Credits Enter Totals Here Part D - Classified Balance Sheet: Using your adjusted trial balance and the additional information below, prepare the CLASSIFIED balance sheet for December 31. You may update and attach this Excel template provided for your convenience Additional Information The investment in equity securities account includes an investment in common stock of another corporation of Bal 5388,000 which management intends to hold for at least Sheet three years. The remaining balance consists of other types of investments that management intends to sell in the coming year. The cash account includes $250,000 restricted in a fund Bal to repay bonds payable in 2023. The remainder is Sheet unrestricted cash in various accounts. The note payable for $420,000 is due in two annual Bal principal payments of $210,000. The first payment will Sheet be due April 30 of next year. The second payment will be due on April 30 one year after that The accounts receivable balance is net of an allowance for uncollectible accounts of $5,000. The gross amount of accounts receivable should be reflected on the financial statements along with the allowance for uncollectible accounts Please note that retained earnings must be the amount after closing entries. Also amounts to be deducted should be in brackets to indicate negative numbers. Bal Sheet Bal Sheet Using your adjusted trial balance and the additional information below, prepare a multi-step income statement and statement of other comprehensive income for the YEAR ended December 31. You may update and attach the same Excel template from the previous question Additional Information Other income includes an unrealized gain on investments in Income the amount of $64,000 that should be reflected as a Stmt component of other comprehensive income. Income The company's Texas service center was closed during the Stmt year. Restructuring costs incurred were $185,000, During the year, the company completed the sale of one of its operating divisions that qualifies as a component of the entity Income according to GAAP. The division had a profit prior to the sale Stmt in the amount of $77,000. This profit was recorded in other income and should be reclassified for financial statement purposes Income taxes have not yet been recorded. The company's Income income tax rate is 21% on all items of income or loss. Please Stmnt include income taxes where appropriate on the income statement Part F - Closing Entries: Prepare the closing journal entries needed to close out temporary accounts and enter them in the space provided below. A post-closing trial balance is not required. The preferred format of your closing journal entries should be as follows: Journal Entry Example Account Name Debit Amount Credit Amount