ANSWER NEEDED ASAP

Libra Corporations post-closing trial balance at December 31, 20x5 was as follows:

Dr. Cr.

Cash $36,000

Accounts receivable 176,000

Allowance for doubtful accounts $23,000

Inventory 320,000

Prepaid insurance 1,400

Land 40,000

Building 300,000

Accumulated depreciation building 120,000

Equipment 145,000

Accumulated depreciation equipment 38,000

Patents 34,000

Accounts payable 127,000

Salaries payable 5,600

Income taxes payable 12,000

Warranty liability 13,000

Bonds payable 400,000

Common stock 150,000

Retained Earnings 124,600

$1,052,400 $1,052,400

Additional information

The company uses a FIFO perpetual inventory system.

The prepaid insurance is for a one year policy taken out in 20x5 that expires on March 1,

20x6.

The building is being depreciated on a straight-line basis over 40 years.

The equipment is being depreciated using the diminishing method at a rate of 20%.

The patent remaining useful life at December 31, 20x5 is 8 years.

There are 10,000 shares of common stock outstanding.

The following transactions took place during the year:

1. Total sales on account were $2,450,000.

2. Cash collections on accounts receivable totaled $2,510,000.

3. Accounts written off totaled $30,000.

4. Recoveries of previously written off accounts receivable totaled $4,000.

5. Inventory purchased on account totaled $940,000.

6. Inventory costing $16,000 was returned to suppliers.

7. On March 15, an additional 3,000 common shares were issued for $75,000.

Cash disbursements were as follows:

8. Payments on accounts payable $925,000

9. Payments for salaries 310,000

10. Interest payments on bonds payable 26,000

11. Purchase of equipment on January 2 30,000

12. Payments to the Canada Revenue Agency for income taxes 10,000

13. Repurchase of 1,000 common shares on Aug 23 22,000

14. Insurance policy taken out on March 1 one year policy. 2,400

15. Operating expenses paid 130,000

The following adjustments need to be made at year-end:

16. The ending balance of the allowance for doubtful accounts is estimated to be $17,930.

17. An adjustment is made for insurance expense.

18. Depreciation expense on the building, equipment and patents.

19. Salaries payable at December 31, 20x6 amount to $6,500.

20. Dividends of $90,000 were declared and paid on December 15, 20x6.

Required

Prepare journal entries for the above transactions