Current Attempt in Progress

Selected amounts from Carla Vista Company's trial balance of $12/31/25$ appear below:

$($All of the above accounts have their standard or normal debit or credit balance.$)$

$($a$)$

Prepare the adjusting journal entries at year$-$end, December $31,2025,$ based on the following supplemental information. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

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 $\backslash (\backslash$$ $15,027\backslash )$ as of $\backslash (12/31/25\backslash ).$

c$.$ Prepaid insurance at $\backslash (12/31/25\backslash )$ is $\backslash (\backslash$$ $20,000\backslash ).$

d$.$ The rent payment of $\backslash (\backslash$$ $245,400\backslash )$ covered the six months from November $30,2025$ through May $31,2026.$

e$.$ Salaries and wages earned but unpaid at $\backslash (12/31/25,\backslash$$ $21,200\backslash ).$ Prepare the adjusting journal entries at year$-$end, December $31,2025,$ based on the following supplemental information. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

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 $\backslash (\backslash$$ $15,027\backslash )$ as of $\backslash (12/31/25\backslash ).$

c$.$ Prepaid insurance at $\backslash (12/31/25\backslash )$ is $\backslash (\backslash$$ $20,000\backslash ).$

d$.$ The rent payment of $\backslash (\backslash$$ $245,400\backslash )$ covered the six months from November $30,2025$ through May $31,2026.$

e$.$ Salaries and wages earned but unpaid at $\backslash (12/31/25,\backslash$$ $21,200\backslash ).$

No$.$ Account Titles and Explanation

a$.$ Depreciation Expense

Accumulated Depreciation$-$Equipment

b$.$ Interest Expense

Interest Payable

c$.$ Insurance Expense

Prepaid Insurance

d$.$ Rent Expense

Prepaid Rent

e$.$ Salaries and Wages Expense

Salaries and Wages Payable

$($b$)$ Indicate the proper balance sheet classification of each of the $15$ numbered accounts in the $\backslash (12/31/25\backslash )$ trial balance before adjustments. If the account title would appear on the income statement then please select "Not applicable".

$1.$ Accounts Payable

$2.$ Accounts Receivable

$3.$ Accumulated Depreciation$-$Equipment

$4.$ Allowance for Doubtful Accounts

$5.$ Bonds Payable

$6.$ Cash

$7.$ Common Stock

$8.$ Equipment

$9.$ Prepaid Insurance

$10.$ Interest Expense

$11.$ Inventory

$12.$ Notes Payable $($due $6/1/26)$

$13.$ Prepaid Rent

$14.$ Retained Earnings

$15.$ Salaries and Wages Expense