The Sheldon Corporation began a consulting business specializingin on-site computer training on January 1, 2018. The followingtransactions took place during its first three months ofoperations.

Summary of Transactions

Jan. 1 Sold 5,000 shares of capital stock for a total of$500,000 cash.

Jan. 2 Paid the premium of $12,000 on a 24-month insurancepolicy on all assets.

Jan. 3 Purchased land and a building for a total of $350,000cash. The land is valued at $50,000, while the building is valuedat $300,000 and is expected to have a useful life of 30 years.

Jan. 10 Purchased a computer network system for $36,000 cash.The expected useful life is 6 years.

Jan. 15 Paid $2,400 cash for a phone system that should have a3-year useful life.

Jan. 16 Paid cash to acquire equipment and furniture forbusiness purposes at a cost of $12,000. The expected useful life is4 years.

Jan. 19 Purchased office supplies for $1,250 cash. (Use theasset account “Office Supplies” for such purchases.)

Jan. 24 Paid cash of $10,000 for binders, manuals, and workbooksfor use in Sheldon's client programs. Sheldon's policy is toinitially record these materials as an asset (Program Supplies) andto then expense the materials used for a particular trainingprogram when the program is completed.

Jan. 30 Paid wages of $1,800 and salaries of $3,600 for workperformed during January.

Feb. 14 Completed the first client program for a fee of $9,500.The customer paid $2,500 of the fee that day, with the remainderbilled on account. Program supplies used on the project hadoriginally cost Sheldon $1,500.

Feb. 15 Paid wages of $2,400 in cash.

Feb. 19 Paid utilities for the month of January of $1,050 incash.

Feb. 23 Purchased on account 30 specialized manuals as programsupplies for use in computer training for a total of $1,800.

Feb. 28 Borrowed $45,000 from the bank on a 2-year note. Theinterest rate on the note is 6% per year (or 0.5% per month).

Mar. 1 Paid wages of $3,600 and salaries of $6,000.

Mar. 1 Completed on-site computer training for two customers:JKL Products, Inc., and Watson Company. Billed JKL $11,000 onaccount. The fee for Watson was $9,200, half of which Watson paidin cash with the remainder on account. Program supplies used forthe two customers totaled $4,600.

Mar. 4 Purchased additional program supplies on account for atotal of $3,600.

Mar. 13 Collected $16,600 on account from credit customers.

Mar. 15 Completed first all-day computer workshop for walk-incustomers. Sales totaled $4,250, all in cash. Program supplies usedfor the workshop originally cost Sheldon $1,850.

Mar. 16 Billed Coastal Corporation $7,500 for on-site trainingcompleted on March 16. Program supplies for the training originallycost Sheldon $2,500.

Mar. 16 Paid wages of $3,700.

Mar. 17 Purchased office supplies of $750 on account.

Mar. 21 Paid $3,200 to suppliers for materials previouslypurchased on account.

Mar. 23 Paid utilities for the month of February of $1,800 incash.

Mar. 26 Received a $2,000 cash advance from Watson Company foradditional computer training to begin April 1, 2018.

Mar. 29 Collected $6,250 on account from credit customers.

Mar. 31 Purchased $3,600 of program supplies for cash.

Additional Data Determined at March 31,2018:

Unpaid and unrecorded wages and salaries totaled $2,700 and$8,500, respectively.

Service revenue unrecorded and unbilled at March 31 amounted to$9,300. Program supplies associated with these services originallycost Sheldon $2,800.

Office supplies on hand at March 31 totaled $450.

Sheldon uses straight-line depreciation on all depreciableassets and assumes the assets will have no value at the end oftheir estimated useful lives. A full month's depreciation is takenfor the month of purchase, regardless of which day of the month thepurchase is made. For example, depreciation expense for the threemonths ended March 31, 2018, on the phone system is $200 (i.e.,$2,400/3 years x 3/12 of a year). Land is not considereddepreciable. You may use a single account (Depreciation Expense) torecord all of the depreciation expense for the depreciable assets.Also, you may use a single account (Accumulated Depreciation) torecord the effect of depreciation on total assets.

Sheldon must record accrued interest for one month on the$45,000 bank loan.

Sheldon estimates utilities used during March amounted to$1,800, although the bill has not yet been received.

Remember insurance that has expired.

Required (round all amounts to the nearestdollar):

Prepare an unadjusted trial balance.