Selected amounts from Trent Company's trial balance of 12/31/22 appear below:
1. Accounts Payable € 190,000
2. Accounts Receivable 150,000
3. Accumulated Depreciation—Equipment 200,000
4. Allowance for Doubtful Accounts 20,000
5. Bonds Payable 500,000
6. Cash 150,000
7. Equipment 840,000
8. Prepaid Insurance 30,000
9. Interest Expense 10,000
10. Inventory 300,000
11. Notes Payable (due 6/1/23) 200,000
12. Prepaid Rent 180,000
13. Retained Earnings 818,000
14. Salaries and Wages Expense 328,000
15. Share Capital–Ordinary 60,000
(All of the above accounts have their standard or normal debit or credit balance.)
Part A. Prepare adjusting journal entries at year end, December 31, 2022, based on the
following supplemental information.
a. The equipment has a useful life of 20 years with no salvage value. (Straight-line method
being used.)
b. Interest accrued on the bonds payable is €15,000 as of 12/31/22.
c. Unexpired insurance at 12/31/22 is €12,000.
d. The rent payment of €180,000 covered the six months from November 30, 2022 through
May 31, 2023.
e. Salaries and wages incurred but unpaid at 12/31/22, €22,000.
Part B. Indicate the proper statement of financial position classification of each of the 15
numbered accounts in the 12/31/22 trial balance before adjustments by placing
appropriate numbers after each of the following classifications. If the account title
would appear on the income statement, do not put the number in any of the
classifications.
a. Property, plant, and equipment
b. Current assets
c. Equity
d. Non-current liabilities
e. Current liabilities