Debit Credit Cash $38,000 Inventory 46,500 Supplies 5,000 Building 600,000 Accumulated depreciation - building 120,000 Equipment 330,000 Accumulated depreciation - equipment $66,000 Accounts payable 34,000 Dividends payable 0 Interest payable 0 Income tax payable 0 Unearned revenue 30,600 Bonds payable (maturity date January 1, 2029) 500,000 Preferred shares ($4 noncumulative, 1,000 issued) 40,000 Common shares (120,000 issued) 60,000 Retained earnings 73,000 Cash dividends - preferred 0 Cash dividends - common 0 Sales 515,000 Cost of goods sold 159,000 Depreciation expense 20,000 Income tax expense 0 Insurance expense 8,200 Interest expense 1,800 Rent expense 32,600 Salaries expense 185,000 Supplies expense 12,500 TOTALS $1,438,600 $1,438,600

No new shares were issued or reacquired during 2023. The following transactions have not yet been recorded for 2023: 1. On December 31, 2023, the board of directors declared a total cash dividend of $54,000 2. The bonds were issued at par with a contract interest rate of 4%. Interest is paid semi-annually on July 1 and January 1. 3. The income tax rate for 2023 is 20%