Kenseth Corporations unadjusted trial balance at December 1, 2014, is presented Below. The following transactions occurred during

Kenseth Corporation’s unadjusted trial balance at December 1, 2014, is presented Below.

The following transactions occurred during December.
Dec. 2 Purchased equipment for $16,000, plus sales taxes of $800 (paid in cash).
2 Kenseth sold for $3,500 equipment which originally cost $5,000. Accumulated depreciation on this equipment at January 1, 2014, was $1,800; 2014 depreciation prior to the sale of equipment was $825.
15 Kenseth sold for $5,000 on account inventory that cost $3,500.
23 Salaries and wages of $6,600 were paid.
Adjustment data:
1. Kenseth estimates that uncollectible accounts receivable at year-end are $4,000.
2. The note receivable is a one-year, 8% note dated April 1, 2014. No interest has been recorded.
3. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2014.
4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,000.
5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost.
6. The equipment purchased on December 2, 2014, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,800.
7. The patent was acquired on January 1, 2014, and has a useful life of 9 years from that date.
8. Unpaid salaries at December 31, 2014, total $2,200.
9. Both the short-term and long-term notes payable are dated January 1, 2014, and carry a 10% interest rate. All interest is payable in the next 12 months.
10. Income tax expense was $15,000. It was unpaid at December 31.

Instructions
(a) Prepare journal entries for the transactions listed above and adjusting entries.
(b) Prepare an adjusted trial balance at December 31, 2014.
(c) Prepare a 2014 income statement and a 2014 retained earnings statement.
(d) Prepare a December 31, 2014, balancesheet.

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Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accounts Payable Salaries and Wages Payable Notes Payable (due April 30, 2015) Interest Payable Notes Payablc (duc in 2020) Gain on Disposal of Plant Assets Depreciation Expense Other Operating Expenses Salarics and Wages Expense 1,161,400