1 2 3. Marin Corporation's balance sheet at December 31, 2024, is presented below. Inventory Prepaid insurance Equipment 11. Cash 1 2 3. 10. 4. 5. 6. 7. 9. 8. Adjustment data: Marin Corporation Balance Sheet December 31, 2024 $66,000 67,650 12,320 During 2025, the following transactions occurred. Marin uses a perpetual inventory system. 83,600 $229,570 Accounts payable Interest payable Bonds payable Common stock Retained earnings $30,250 5,500 110,000 55,000 $28,820 $229,570 Marin paid $5,500 interest on the bonds on January 1, 2025. Marin purchased $530,420 of inventory on account. Marin sold for $1,056,000 cash inventory which cost $580,800. Marin also collected $63,360 sales taxes. Marin paid $506,000 on accounts payable. Marin paid $5,500 interest on the bonds on July 1, 2025. The prepaid insurance ($12,320) expired on July 31 On August 1, Marin paid $22,440 for insurance coverage from August 1, 2025, through July 31, 2026. Marin paid $37,400 sales taxes to the state. Paid other operating expenses, $200,200. Redeemed the bonds on December 31, 2025, by paying $105,600 plus $5,500 interest. Issued $198,000 of 8%, 10-year bonds on December 31, 2025, at 103. The bonds pay interest every June 30 and December 31. Recorded the insurance expired from item 7. The equipment was acquired on December 31, 2024, and will be depreciated on a straight-line basis over 5 years with a $6,700 salvage value. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

Marin Cerperations balances sheet at December 31 2.024, ts preaented below During 2025, the following transactions occurred Marin uses a perpetual imventory system. 1. Marin paid $5,500 interest on the bonds on January 1,2025. 2 Marin purchased 5530.420 of imentory on account. 3. Marin sold for 51,056,000 ash imventory which cost 5580,800 , Marin also collected 563,360 sales tawes 4. Marin pad $506,000 on accounts payable. 5. Marin pald 55,500 interest on the bonds on July 1, 2025 6. The prepaid insurance ($12,320) expired on July 31 7. On August 1, Marin paid \$22,440 for insurance coverage from August 1, 2025, through July 31,2026. R. Marin paid 537,400 rales tanes to the state 9. Paid other operating expenses, $200,200. 10. Redeemed the bonds on December 31,2025 , by paying 5105,600 plus $5,500 interest: 11. Issued $198,000 of 8%,10 year bonds on December 31,2025 , at 103 . The bonds pary interest every June 30 and December 31. Adjustment data: 1. Recorded the insurance expired from item 7. 2. The equlpment was acquired on December 31,2024 , and will be depreciated on a straight-line basis over 5 years with a $6,700 salvage value. 3. The income tax rate is 30%. (Hint Prepare the income statement up to income before taxes and multiply by 30% to compute the amount) (To record interest expense) Bonds Payale 110000 Galn on Bond Federnpelon \begin{tabular}{r} \hline 4400 \\ \hline 105600 \\ \hline \end{tabular} (To record retirement of bonds] 11. cash Prentum on Bonds Porpble Bonds Payable Adj, 1. Insurance Depense Prepald inurano: Ad). 2. Depredation Expente - Acannulased Depredation-Equlpmint Ad). 3. income Tax Bqpenset Income Tous Payable 203940 5990 190000 7350 9350 15364 15354 \begin{tabular}{r} \hline 69004 \\ \\ \hline \end{tabular} No. Account Trites and Explanation 1. 2. Inventiony Accounaspate 3. Cinh Sule Renenot Siles Tani Puyable (To recond swles revenie) Cont of Coodifolt: inmion - Torecord cont of goods sold] 4. Accoven Prablin cosh 5. \( \longdiv { \text { Thueticioperiet } } \) cioh 6. Thernot Epentis Prepaldinerme \begin{tabular}{|l|l|} \hline Con \\ \hline \end{tabular} ti. Canh 9. Oun Operatins biperies eas 10. \( \longdiv { \text { inermitiopenit } } \) ain Debit Credit 3xseg icsowoe 50 \begin{tabular}{|l|l|} \hline \\ \hline \\ \hline \end{tabular} [ [ \begin{tabular}{|c|c|} \hline soecon & II \\ \hline & x= \\ \hline & 304000 \\ \hline ant & \\ \hline & \\ \hline & \\ \hline & 3000 \\ \hline & \\ \hline 12n & \\ \hline & +1 \\ \hline & \\ \hline 40 & \\ \hline 2240 & \\ \hline & zus \\ \hline & \\ \hline & \\ \hline & \\ \hline & pion \\ \hline & \\ \hline 200900 & \\ \hline & zperos \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular}