$24.200 74,000 143,200 NOVAK CORPORATION Balance Sheet December 31, 2021 Cash $22,300 Accounts payable Accounts receivable 41,700 Common stock ($10 par) Allowance for doubtful accounts (1.500) Retained earnings Supplies 4,300 Land 42.600 Buildings 156,200 Accumulated depreciation-buildings 124.200) $241,400 $241.400 1. During 2022, the following transactions occurred. On January 1, 2022. Novak Issued 1.200 shares of $40 par, 7% preferred stock for $49,200, 2 On January 1, 2022. Novak also issued 900 shares of the $10 par value common stock for $19,100. Novak performed services for $289,000 on account On April 1, 2022. Novak collected fees of $36,000 in advance for services to be performed from April 1, 2022, to March 31, 3. 4. 2023 5 Novak collected $269,500 from customers on account Question 2 of 2 -/4 5. 6. 7. 8 B. . Novak collected $269.500 from customers on account Novak bought $38,300 of supplies on account. Novak paid $35,400 on accounts payable. Novak reacquired 400 shares of its common stock on June 1, 2022, for $29 per share. Paid other operating expenses of $200,900. On December 31, 2022, Novak declared the annual preferred stock dividend and a $1.30 per share dividend on the outstanding common stock, alt payable on January 15, 2023. An account receivable of $1,800 which originated in 2021 is written off as uncollectible. 9. 10. 11 Adjustment data: 1 2 3. A count of supplies indicates that $5.800 of supplies remain unused at year-end. Recorded revenue from item 4 above. The allowance for doubtful accounts should have a balance of $3,600 at year end. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $11,000. The income tax rate is 30%. (Hint: Prepare the income statement up to income before income taxes and multiply by 30% to compute the amount 4 5. (al) Prepare journal entries for the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. 2 3 7 8 9 10. 11 (2) Prepare the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. 2. 3