adjusted trial balance

CHEYENNE CORP. Adjusted Trial Balance December 31, 2022 Debit Credit Cash Accounts Receivable Notes Recelvable Interest Receivable ho Inventory Prepaid Insurance Land Buildings Equipment Patents Allowance for Doubtful Accounts Accumulated Depreciation Buildings Accumulated Depreciation Equipment MMINT Accounts Payable Salaries and Wages Payable Notes Payable Income Taxes Payable Interest Payable Accounts Payable Common Stock Retained Earnings Dividends Es Revenue Interest Revenue IDIOMT FOODTIL TUTTO Hodood Gain on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold Income Tax Expense Depreciation Expense Insurance Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense The following transactions occurred during December. Purchased equipment for $19.200 plus sales taxes of $960 (paid in cash). Dec. 2 2 Cheyenne sold for $4.200 equipment which originally cost $6,000. Accumulated depreciation on this equip January 1, 2022, was $2,160; 2022 depreciation prior to the sale of equipment was $990. Cheyenne sold for $6,000 on account inventory that cost $4,200. Salaries and wages of $7,920 were paid. 15 23 Adjustment data: 1. 2. 3. 4. 5. Cheyenne estimates that uncollectible accounts receivable at year-end are $4,800. 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 $4,320, 6-month premium on September 1, 2022. The building is being depreciated using the straight-line method over 30 years. The salvage value is $36,000. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The 10% of cost. The equipment purchased on December 2, 2022, is being depreciated using the straight-line method over 5 ye salvage value of $2,160. 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 $2,640. Both the short-term and long-term notes payable are dated January 1, 2022, and carry a 10% interest rate. Al payable in the next 12 months. 6. 7. 8. 9. 10 Income tax expense was $18,000. It was unpaid at December 31. Date Accounts/Tittle Debit(s) Credit(s) Dec 02 Equipment $20,160 Cash $20,160 (To record purchase of Equipment) Dec- 02 Depreciation Expense 5990 5990 Accumulated Depreciation- Equipment (To record depreciation expense Upto June 30) Cash Dec- 02 $4,200 $3,150 Accumulated Depreciation Gain on Disposal of Plant Assets $1,350 Equipment $6,000 To record Equipment sold on Gain) Accounts Receivable Dec- 15 $6,000 Sales $6,000 (To record Sale of Inventory) Cost of Goods sold $4,200 Inventory $4,200 (To record Cost of Goods Sold) Dec Salaries and Wages Expense $7,920 23 $7.920 Cash (To record payment of Salaries) Date Accounts/Tittle Debit($) Credit(5) Bad Debt Expense Dec- 31 $4,200 Allowance for Doubtful Accounts $4,200 (To record Estimated Uncollectable account) Interest Receivable Dec- 31 5720 Interest Revenue 5720 (To record Interest Revenue Accrued) Dec- 31 Insurance Expense $2,880 Prepaid Insurance $2.880 (To record Use of Prepaid Insurance Dec- 31 Depreciation 54,800 $4,800 Accumulated Depreciation-Building (To record depreciation on Building) Dec- 31 Depreciation Expense 511,880 $11.880 Accumulated Depreciation Equipment (To record depreciation on Old Equipment) Dec- 31 Depreciation expense $300 Accumulated Depreciation Equipment 5300 (To record depreciation on New Equipment) Amortization Expense S1,200 Dec- 31 Patent $1,200 Salaries and wages expense $2,640 Dec- 31 Salaries and Wages Payable $2,640 (To record Salaries and wages accrued) Interest Expense $5,520 Dec- 31 Interest payable $5,520 (To record Interest expense accrued) Income Tax Expense $18,000 Dec- 31 Income Tax Payable $18,000 (To record Income tax expense accrued)