5. Amounts from Travis Tent Company's trial balance of 12/31/16 appear below:

1. Accounts Payable $ 160,000

2. Accounts Receivable 150,000

3. Accumulated DepreciationEquipment 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 1,000,000

9. Prepaid Insurance 30,000

10. Interest Expense 10,000

11. Inventory 300,000

12. Notes Payable (due 6/1/17) 240,000

13. Prepaid Rent 60,000

14. Retained Earnings 818,000

15. Salaries and Wages Expense 298,000

(All of the above accounts have their normal debit or credit balance i.e. Accounts Payable has a $160,000 credit balance)

Part A. Prepare a 12/31/16 trial balance before adjustments

Part B. Prepare adjusting journal entries at year end, December 31, 2016, based on the following supplemental information.

a.The equipment has a useful life of 10 years with no salvage value. (Straight-line method)

b. Interest accrued on the bonds payable is $12,000 as of 12/31/16.

c. Prepaid insurance at 12/31/16 is $20,000.

d. The rent payment of $60,000 covered six months from November 30, 2016 to May 31, 2017.

e. Salaries and wages earned but unpaid at 12/31/16, $12,000.

Space for #5

Trial Balance Adjustments Adjusted Trial Balance

Accounts DR CR DR CR DR CR