*Comprehensive Accounting Cycle Review 9-1 (Part Level Submission)

Pina Colada Corp.'s unadjusted trial balance at December 1, 2017, is presented below.

Debit

Credit

Cash$25,900Accounts Receivable35,100Notes Receivable8,400Interest Receivable0Inventory36,280Prepaid Insurance3,600Land21,800Buildings140,100Equipment60,500Patent9,630Allowance for Doubtful Accounts$600Accumulated DepreciationBuildings46,700Accumulated DepreciationEquipment24,200Accounts Payable28,100Salaries and Wages Payable0Notes Payable (due April 30, 2018)12,900Income Taxes Payable0Interest Payable0Notes Payable (due in 2023)36,000Common Stock56,400Retained Earnings24,410Dividends13,500Sales Revenue923,500Interest Revenue0Gain on Disposal of Plant Assets0Bad Debt Expense0Cost of Goods Sold631,500Depreciation Expense0Income Tax Expense0Insurance Expense0Interest Expense0Other Operating Expenses61,000Amortization Expense0Salaries and Wages Expense105,500Total$1,152,810$1,152,810

The following transactions occurred during December.

Dec. 2Purchased equipment for $16,200, plus sales taxes of $1,800 (paid in cash).2Pina sold for $3,550 equipment which originally cost $4,800. Accumulated depreciation on this equipment at January 1, 2017, was $1,850; 2017 depreciation prior to the sale of equipment was $480.15Pina sold for $5,450 on account inventory that cost $3,280.23Salaries and wages of $6,370 were paid.

Adjustment data:

1.Pina estimates that uncollectible accounts receivable at year-end are $4,190.2.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 $3,600, 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 $30,600.5.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 $2,340.7.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 $2,070.9.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.10Income tax expense was $12,000. It was unpaid at December 31.

*(a)

Your answer is correct.

Prepare journal entries for the transactions listed above and adjusting entries.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 2

Equipment

18000

Cash

18000

Dec. 2

Depreciation Expense

480

Accumulated Depreciation-Equipment

480

(To record depreciation expense on equipment.)Cash

3550

Accumulated Depreciation-Equipment

2330

Gain on Disposal of Plant Assets

1080

Equipment

4800

(To record sale of equipment.)Dec. 15

Accounts Receivable

5450

Sales Revenue

5450

(To record sales revenue.)Cost of Goods Sold

3280

Inventory

3280

(To record cost of goods sold.)Dec. 23

Salaries and Wages Expense

6370

Cash

6370

Dec. 31

1.

Bad Debt Expense

3590

Allowance for Doubtful Accounts

3590

2.

Interest Receivable

504

Interest Revenue

504

3.

Insurance Expense

2400

Prepaid Insurance

2400

4.

Depreciation Expense

3650

Accumulated Depreciation-Buildings

3650

5.

Depreciation Expense

10026

Accumulated Depreciation-Equipment

10026

6.

Depreciation Expense

261

Accumulated Depreciation-Equipment

261

7.

Amortization Expense

1070

Patents

1070

8.

Salaries and Wages Expense

2070

Salaries and Wages Payable

2070

9.

Interest Expense

4890

Interest Payable

4890

10.

Income Tax Expense

12,000

Income Taxes Payable

12,000

++ display adjusted trial balance with above info