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QUESTION 2: The following is the unadjusted trial balance for Tricom Co as of December 31, 2006. nadsted Trial Balance TRICOM CO December 31, 2006 Cash on hand Cash at banks Treasury Bills Matury March 30, 2007) Treasury Bonds Maurity Sept 29 2007 Trading Stocks (BM Co.) Allowance to trading stocks to Accounts receivable Allowance for Uncollectible Accounts Inventories Notes Receivable Prepaid Rent Property Plant and Equipment Accumulated depreciation Property. Plant and Equip Accounts payable Unearned revenue Capital Sales Sales returns and allowances Cost of Goods sold Rent expenses Salary expenses Other expenses $10.000 20.000 20.000 30.000 10,000 20.000 70 000 1000 60.000 50,000 4000 15 000 3.000 70 000 10000 160,000 200,000 3.000 76,000 22.000 30 000 4.000 Additional Information relating to wear and adjustments 1. Treasury bills were purchased on October 1, 2006. Total interest of $2,400 will be received at maturity No accrual adjustments were made in 2006. 2. Treasury bonds, were purchased on December 1, 2006. Total interest of $5,000 will be received at maturity. 3. IBM Co. Stock of 5,000 shares were purchased on February 8, 2005 for $2 per share. As of December 31, 2006 the market value of IBM was S13 per share. 4. The company uses the Allowance method, and estimates its uncollectible accounts by analyzing the aging of its receivables. After analyzing its December 31, 2006 Accounts Receivable aging, the company determined the amount of its "Uncollectible Accounts to be $2,600. 5. Prepaid rent account represents rent prepaid on December 1, 2006, covering the months of December & January 6. Uneamed revenue of $10,000 was received from a customer on November 1, 2006. Or this account, 60% of sales is still unearned as of December 31, 2006 7. Property Plant and Equipment has a useful life of 5 years. The Company prepares the depreciation adjustment only once a year on December 31. Required: a) Prepare the adjusting entries (1-7 above) as of December 31, 2006 using the journal entry format. b) List the cash and cash equivalents of the company (only account names)

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