a. Cash withdrawal by owner d. Cash g. Prepaid rentb. Office equipment e. Utilities expenses h. Unearned feesc. Accounts payable f. Office supplies i. Service fees earned1-6 The following are common categories on a classified balance sheet.A. Current assets D. Intangible assetsB. Long-term investments E. Current liabilitiesC. Plant assets F. Long-term liabilitiesFor each of the following items, select the letter that identifies the balance sheet category where the item typically would appear.______ 1. Land not currently used in operations ______ 5. Accounts payable______ 2. Notes payable (due in three years) ______ 6. Store equipment______ 3. Accounts receivable ______ 7. Wages payable______ 4. Trademarks ______ 8. Cash1-7 In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.A. Current assets D. Intangible assets F. Long-term liabilitiesB. Long-term investments E. Current liabilities G. EquityC. Plant assets______ 1. Long-term investment in stock ______ 12. Accumulated depreciation—Trucks ______ 2. Depreciation expense—Building ______ 13. Cash______ 3. Prepaid rent______ 4. Interest receivable ______ 14. Buildings______ 5. Taxes payable ______ 15. Store supplies______ 6. Automobiles ______ 16. Office equipment______ 7. Notes payable (due in 3 years) ______ 17. Land (used in operations)______ 8. Accounts payable ______ 18. Repairs expense______ 9. Prepaid insurance ______ 19. Office supplies______ 10. Owner, Capital ______ 20. Current portion of long-term note payable ______ 11. Unearned services revenue1-8 In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classfication. If the item should not appear on the balance sheet, enter a Z in the blank.A. Current assets E. Current liabilitiesB. Long-term investments F. Long-term liabilitiesC. Plant assets G. Equity3-2 The adjusted trial balance for Chiara Company as of December 31, 2008, follows.Debit CreditCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,000Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . 52,000Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . 18,000Notes receivable (due in 90 days) . . . . . . . . . . . . . 168,000Office supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,000Automobiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168,000Accumulated depreciation—Automobiles . . . . . . . $ 50,000Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,000Accumulated depreciation—Equipment . . . . . . . . . 18,000Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,000Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . 96,000Interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000Salaries payable . . . . . . . . . . . . . . . . . . . . . . . . . . 19,000Unearned fees . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000Long-term notes payable . . . . . . . . . . . . . . . . . . . 138,000R.Chiara,Capital . . . . . . . . . . . . . . . . . . . . . . . . . 255,800R.Chiara,Withdrawals . . . . . . . . . . . . . . . 46,000Fees earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 484,000Interest earned . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000Depreciation expense—Automobiles . . . . . . . . . . 26,000Depreciation expense—Equipment . . . . . . . . . . . . 18,000Salaries expense . . . . . . . . . . . . . . . . . . . . . . . . . . 188,000Wages expense . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . 32,000Office supplies expense . . . . . . . . . . . . . . . . . . . . 34,000Advertising expense . . . . . . . . . . . . . . . . . . . . . . . 58,000Repairs expense—Automobiles . . . . . . . . . . . . . . 24,800Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,134,800 $1,134,800Required1. Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31,2008; (b) the statement of owner’s equity for the year ended December 31,2008;and (c) the balance sheet as of December 31, 2008.2. Calculate the profit margin for year 2008.3-3 On April 1, 2008, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month..April 1 Nozomi invested $30,000 cash and computer equipment worth $20,000 in the business.2 Rented furnished office space by paying $1,800 cash for the first month’s (April) rent.3 Purchased $1,000 of office supplies for cash.10 Paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins onApril 11.14 Paid $1,600 cash for two weeks’salaries earned by employees.24 Collected $8,000 cash on commissions from airlines on tickets obtained for customers.28 Paid another $1,600 cash for two weeks’salaries earned by employees.29 Paid $350 cash for minor rep airs to the company’s computer.30 Paid $750 cash for this month’s telephone bill.30 Nozomi withdrew $1,500 cash for personal use.The company’s chart of accounts follows:101 Cash 405 Commissions Earned106 Accounts Receivable 612 Depreciation Expense—Computer Equip.124 Office Supplies 622 Salaries Expense128 Prepaid Insurance 637 Insurance Expense167 Computer Equipment 640 Rent Expense168 Accumulated Depreciation—Computer Equip. 650 Office Supplies Expense209 Salaries Payable 684 Repairs Expense301 J.Nozomi,Capital 688 Telephone Expense302 J.Nozomi,Withdrawals 901 Income SummaryRequired:1. Use the balance column format to set up each ledger account listed in its chart of accounts.2. Prepare journal entries to record the transactions for April and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts.3. Prepare an unadjusted trial balance as of April 30.4. Use the following information to journalize and post adjusting entries for the month:a. Two-thirds of one month’s insurance coverage has expired.b. At the end of the month, $600 of office supplies are still available.c. This month’s depreciation on the computer equipment is $500.d. Employees earned $420 of unpaid and unrecorded salaries as of month-end.e. The company earned $1,750 of commissions that are not yet billed at month-end.5. Prepare the income statement and the statement of owner’s equity for the month of April a nd the balance sheet at April 30, 2008.6. Prepare journal entries to close the temporary accounts .7. Prepare a post-closing trial balance.。