Ayayai Corp.s balance sheet at December 31, 2021, is presented below.

AYAYAI CORP. Balance Sheet December 31, 2021
Cash		$68,880			Accounts payable		$71,680
Accounts receivable		127,400			Common stock ($10 par)		224,000
Allowance for doubtful accounts		(4,200	)		Retained earnings		356,720
Supplies		12,320
Land		112,000
Buildings		397,600
Accumulated depreciationbuildings		(61,600	)
		$652,400					$652,400

During 2022, the following transactions occurred.

1.		On January 1, Ayayai issued 3,360 shares of $40 par, 7% preferred stock for $137,760.
2.		On January 1, Ayayai also issued 2,520 shares of the $10 par value common stock for $58,800.
3.		Ayayai performed services for $896,000 on account.
4.		On April 1, 2022, Ayayai collected fees of $100,800 in advance for services to be performed from April 1, 2022, to March 31, 2023.
5.		Ayayai collected $772,800 from customers on account.
6.		Ayayai bought $98,280 of supplies on account.
7.		Ayayai paid $90,160 on accounts payable.
8.		Ayayai reacquired 1,120 shares of its common stock on June 1 for $28 per share.
9.		Paid other operating expenses of $526,960.
10.		On December 31, 2022, Ayayai declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2023.
11.		An account receivable of $4,760 which originated in 2022 is written off as uncollectible.

Adjustment data:

1.		A count of supplies indicates that $16,520 of supplies remain unused at year-end.
2.		Recorded revenue from item 4 above.
3.		The allowance for doubtful accounts should have a balance of $9,800 at year end.
4.		Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $28,000.
5.		The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

Comprehensive Accounting Cycle