Account Debit Credit Cash 31,680 Accounts Receivable 52,992 Notes Receivable 14,400 Interest Receivable 0 Inventory 52,128 Prepaid Insurance 5,184 Land 28,800 Buildings 216,000 Equipment 86,400 Patent 12,960 Allowance for Doubtful Accounts 720 Accumulated DepreciationBuildings 72,000 Accumulated DepreciationEquipment 34,560 Accounts Payable 39,312 Salaries and Wages Payable 0 Notes Payable (due April 30, 2023) 15,840 Income Taxes Payable 0 Interest Payable 0 Notes Payable (due in 2028) 50,400 Common Stock 72,000 Retained Earnings 91,584 Dividends 17,280 Sales Revenue 1,296,000 Interest Revenue 0 Gain on Disposal of Plant Assets 0 Bad Debt Expense 0 Cost of Goods Sold 907,200 Depreciation Expense 0 Income Tax Expense 0 Insurance Expense 0 Interest Expense 0 Other Operating Expenses 88,992 Amortization Expense 0 Salaries and Wages Expense 158,400 Totals 1,672,416 1,672,416 The following transactions occurred during December Dec 2 Purchased equipment for $23,040, plus sales taxes of $1,152 (paid in cash) Dec 2 Novak sold for $5,040 equipment which originally cost $7,200 Accumulated depreciation on this equipment at January 1, 2022, was $2,592 2022 depreciation prior to the sale of equipment was $1,188 Dec 15 Novak sold for $7,200 on account inventory that cost $5,040 Dec 23 Salaries and wages of $9,504 were paid Adjustment data 1 Novak estimates that uncollectible accounts receivable at year end are $5,760 2 The note receivable is a one year, 8 note dated April 1, 2022 No interest has been recorded 3 The balance in prepaid insurance represents payment of a $5,184, 6 month premium on September 1, 2022 4 The building is being depreciated using the straight line method over 30 years The salvage value is $43,200 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, 2022, is being depreciated using the straight line method over 5 years, with a salvage value of $2,592 7 The patent was acquired on January 1, 2022, and has a useful life of 9 years from that date 8 Unpaid salaries at December 31, 2022, total $3,168 9 Both the short term and long term notes payable are dated January 1, 2022, and carry a 10 interest rate All interest is payable in the next 12 months 10 Income tax expense was $21,600 It was unpaid at December 31 Prepare journal entries for the transactions listed above and 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 0 for the amounts Record journal entries in the order presented in the problem )

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Account Debit Credit Cash 31,680 Accounts Receivable 52,992 Notes Receivable 14,400 Interest Receivable 0 Inventory 52,128 Prepaid Insurance 5,184 Land 28,800 Buildings 216,000 Equipment 86,400

Account	Debit	Credit
Cash	31,680
Accounts Receivable	52,992
Notes Receivable	14,400
Interest Receivable	0
Inventory	52,128
Prepaid Insurance	5,184
Land	28,800
Buildings	216,000
Equipment	86,400
Patent	12,960
Allowance for Doubtful Accounts		720
Accumulated DepreciationBuildings		72,000
Accumulated DepreciationEquipment		34,560
Accounts Payable		39,312
Salaries and Wages Payable		0
Notes Payable (due April 30, 2023)		15,840
Income Taxes Payable		0
Interest Payable		0
Notes Payable (due in 2028)		50,400
Common Stock		72,000
Retained Earnings		91,584
Dividends	17,280
Sales Revenue		1,296,000
Interest Revenue		0
Gain on Disposal of Plant Assets		0
Bad Debt Expense	0
Cost of Goods Sold	907,200
Depreciation Expense	0
Income Tax Expense	0
Insurance Expense	0
Interest Expense	0
Other Operating Expenses	88,992
Amortization Expense	0
Salaries and Wages Expense	158,400
Totals	1,672,416	1,672,416

The following transactions occurred during December.

Dec. 2

Purchased equipment for $23,040, plus sales taxes of $1,152 (paid in cash).

Dec. 2

Novak sold for $5,040 equipment which originally cost $7,200. Accumulated depreciation on this equipment at January 1, 2022, was $2,592; 2022 depreciation prior to the sale of equipment was $1,188.

Dec. 15

Novak sold for $7,200 on account inventory that cost $5,040.

Dec. 23

Salaries and wages of $9,504 were paid.

Adjustment data:

Novak estimates that uncollectible accounts receivable at year-end are $5,760.

The note receivable is a one-year, 8% note dated April 1, 2022. No interest has been recorded.

The balance in prepaid insurance represents payment of a $5,184, 6-month premium on September 1, 2022.

The building is being depreciated using the straight-line method over 30 years. The salvage value is $43,200.

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.

The equipment purchased on December 2, 2022, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,592.

The patent was acquired on January 1, 2022, and has a useful life of 9 years from that date.

Unpaid salaries at December 31, 2022, total $3,168.

Both the short-term and long-term notes payable are dated January 1, 2022, and carry a 10% interest rate. All interest is payable in the next 12 months.

Income tax expense was $21,600. It was unpaid at December 31.

Prepare journal entries for the transactions listed above and 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 0 for the amounts. Record journal entries in the order presented in the problem.)