Blue Spruce Corp.s unadjusted trial balance at December 1, 2017, is presented below.

	Debit		Credit
Cash	$25,000
Accounts Receivable	36,800
Notes Receivable	9,000
Interest Receivable	0
Inventory	36,090
Prepaid Insurance	3,300
Land	21,500
Buildings	138,900
Equipment	60,000
Patent	9,810
Allowance for Doubtful Accounts			$450
Accumulated DepreciationBuildings			46,300
Accumulated DepreciationEquipment			24,000
Accounts Payable			27,500
Salaries and Wages Payable			0
Notes Payable (due April 30, 2018)			11,900
Income Taxes Payable			0
Interest Payable			0
Notes Payable (due in 2023)			35,200
Common Stock			58,200
Retained Earnings			17,850
Dividends	12,000
Sales Revenue			933,500
Interest Revenue			0
Gain on Disposal of Plant Assets			0
Bad Debt Expense	0
Cost of Goods Sold	638,000
Depreciation Expense	0
Income Tax Expense	0
Insurance Expense	0
Interest Expense	0
Other Operating Expenses	61,500
Amortization Expense	0
Salaries and Wages Expense	103,000
Total	$1,154,900		$1,154,900

The following transactions occurred during December.

Dec. 2		Purchased equipment for $16,200, plus sales taxes of $1,800 (paid in cash).
2		Blue sold for $3,600 equipment which originally cost $4,800. Accumulated depreciation on this equipment at January 1, 2017, was $2,000; 2017 depreciation prior to the sale of equipment was $420.
15		Blue sold for $5,300 on account inventory that cost $3,310.
23		Salaries and wages of $6,590 were paid.

Adjustment data:

1.		Blue estimates that uncollectible accounts receivable at year-end are $3,810.
2.		The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded.
3.		The balance in prepaid insurance represents payment of a $3,300, 6-month premium on September 1, 2017.
4.		The building is being depreciated using the straight-line method over 30 years. The salvage value is $32,700.
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, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,980.
7.		The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date.
8.		Unpaid salaries at December 31, 2017, total $2,050.
9.		Both the short-term and long-term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months.
10		Income tax expense was $12,800. It was unpaid at December 31.

Question 1 of 1 19.22 / 50 fii Part 3 Prepare a 2017 income statement. BLUE SPRUCE CORP. Income Statement $ $ > >