Raymond Company€™s trial balance at December 31, 2014, is presented below. All 2014 transactions have been recorded except for the items described shown below.

Unrecorded transactions:
1. On May 1, 2014, Raymond purchased equipment for $13,000 plus sales taxes of $780 (all paid in cash).
2. On July 1, 2014, Raymond 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 the equipment was $450.
3. On December 31, 2014, Raymond sold for $9,400 on account inventory that cost $6,600.
4. Raymond estimates that uncollectible accounts receivable at year-end is $4,000.
5. The note receivable is a one-year, 8% note dated April 1, 2014. No interest has been recorded.
6. The balance in prepaid insurance represents payment of a $4,400 6-month premium on October 1, 2014.
7. The building is being depreciated using the straight-line method over 40 years. The salvage value is $20,000.
8. 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.
9. The equipment purchased on May 1, 2014, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,000.
10. The patent was acquired on January 1, 2014, and has a useful life of 10 years from that date.
11. Unpaid salaries and wages at December 31, 2014, total $2,200.
12. The unearned rent revenue of $6,000 was received on December 1, 2014, for 4 months rent.
13. Both the short-term and long-term notes payable are dated January 1, 2014, and carry a 9% interest rate. All interest is payable in the next 12 months.
14. Income tax expense was $17,000. It was unpaid at December 31.

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

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Debit Credit S 28,000 36,800 10,000 Accounts Receivable Notes Reccivable Intcrest Reccivable Inventory Prepaid Insurance 36,200 4,400 20,000 160,000 60,000 8,000 Buildings Equipment Patents Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Income Taxes Payable Salaries and Wages Payable Uncarned Rent Revenuc Notes Payable (due in 2015) Interest Payable Notes Payable (due after 2015) Common Stock Retained Earnings Dividends Sales Revenue Intcrest Revenue Rent Revenuc Gain on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold Depreciation Expensc Income Tax Expense Insurance Ex Intcrest Expensc Other Operating Expenses Amortization Expense Salaries and Wages Expense Total $ 300 49,000 24,000 28,300 6,000 11,000 35,000 50,000 63,600 12,000 910,000 0 630,000 61,800 110,000 $1,177,200 $1,177,200