Selected amounts from Trent Company's trial balance of 12/31/14 appear below:

      1.   Accounts Payable 160,000

      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.   Common Stock    60,000

      8.   Equipment  960,000

      9.   Prepaid Insurance  30,000

    10.   Interest Expense 10,000

    11.   Inventory  300,000

    12.   Notes Payable (due 6/1/15)   200,000

    13.   Prepaid Rent   210,000

    14.   Retained Earnings  818,000

    15.   Salaries and Wages Expense  328,000

(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, 2014, based on the following supplemental information.

a.     The equipment has a useful life of 15 years with no salvage value. (Straight-line method being used.)

b.     Interest accrued on the bonds payable is $15,000 as of 12/31/14.

c.     Prepaid insurance at 12/31/14 is $25,000.

d.     The rent payment of $180,000 covered the six months from November 30, 2014 through May 31, 2015.

e.     Salaries and wages earned but unpaid at 12/31/14, $22,000.

Part B.           Indicate the proper balance sheet classification of each of the 15 numbered accounts in the 12/31/14 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.     Current assets

b.     Property, plant, and equipment

c.     Current liabilities

d.     Long-term liabilities

e.     Stockholders' equity