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Blue Spruce Companys trial balance at December 31, 2019, is presented below. All 2019 transactions have been recorded except for the items described following the

Blue Spruce Companys trial balance at December 31, 2019, is presented below. All 2019 transactions have been recorded except for the items described following the trial balance.

Debit

Credit

Cash

$26,000

Accounts Receivable

36,500

Notes Receivable

8,900

Interest Receivable

0

Inventory

36,200

Prepaid Insurance

3,780

Land

21,800

Buildings

132,000

Equipment

55,000

Patents

10,300

Allowance for Doubtful Accounts

$400

Accumulated DepreciationBuildings

44,000

Accumulated DepreciationEquipment

22,000

Accounts Payable

27,100

Salaries and Wages Payable

0

Unearned Rent Revenue

3,300

Notes Payable (due in 2020)

13,000

Interest Payable

0

Notes Payable (due after 2020)

36,000

Common Stock

46,500

Retained Earnings

57,580

Dividends

15,000

Sales Revenue

903,000

Interest Revenue

0

Rent Revenue

0

Gain on Disposal of Plant Assets

0

Bad Debts Expense

0

Cost of Goods Sold

640,000

Depreciation Expense

0

Insurance Expense

0

Interest Expense

0

Other Operating Expenses

61,400

Amortization Expense

0

Salaries and Wages Expense

106,000

Total

$1,152,880 $1,152,880

Unrecorded transactions:

1. On May 1, 2019, Blue Spruce purchased equipment for $17,800 plus sales taxes of $1,400 (all paid in cash).
2. On July 1, 2019, Blue Spruce sold for $3,600 equipment which originally cost $5,100. Accumulated depreciation on this equipment at January 1, 2019, was $2,000; 2019 depreciation prior to the sale of the equipment was $450.
3. On December 31, 2019, Blue Spruce sold on account $5,400 of inventory that cost $3,200.
4. Blue Spruce estimates that uncollectible accounts receivable at year-end is $4,000.
5. The note receivable is a one-year, 8% note dated April 1, 2019. No interest has been recorded.
6. The balance in prepaid insurance represents payment of a $3,780 6-month premium on September 1, 2019.
7. The buildings are being depreciated using the straight-line method over 30 years. The salvage value is $30,000.
8. 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.
9. The equipment purchased on May 1, 2019, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,100.
10. The patent was acquired on January 1, 2019, and has a useful life of 10 years from that date.
11. Unpaid salaries and wages at December 31, 2019, total $2,200.
12. The unearned rent revenue of $3,300 was received on December 1, 2019, for 3 months rent.
13. Both the short-term and long-term notes payable are dated January 1, 2019, and carry a 9% interest rate. All interest is payable in the next 12 months.

Prepare journal entries for the transactions listed above.

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