Final Exam Problem Set Question 1 of 12 < > Accounts Receivable 63,296 Notes Receivable 17,100 Interest Receivable 0 Inventory 62,264 Prepaid Insurance 6,192 Land 34,400 Buildings 258,000 Equipment Patent 103,200 15,480 Allowance for Doubtful Accounts Accumulated Depreciation-Buildings $860 86,000 Accumulated Depreciation-Equipment 41,280 Accounts Payable 46,956 Salaries and Wages Payable 0 Notes Payable (due April 30, 2026) 18,920 Income Taxes Payable Interest Payable 0 0 Notes Payable (due in 2031) Common Stock Retained Earnings Dividends 60,200 86,000 109,292 20,640 Sales Revenue 1,548,000 Interest Revenue Gain on Disposal of Plant Assets Bad Debt Expense 0 0 0 Cost of Goods Sold 1,083,600 Depreciation Expense Income Tax Expense 0 0 Insurance Expense 0 Interest Expense 0 Other Operating Expenses 106,296 Amortization Expense 0 Salaries and Wages Expense 189,200 Total $1,997,508 $1,997,508 The following transactions occurred during December. Dec. 2 Purchased equipment for $27,520, plus sales taxes of $1,376 (paid in cash). 2 15 Concord sold for $6,020 equipment which originally cost $8,600. Accumulated depreciation on this equipment at January 1, 2025, was $3,096; 2025 depreciation prior to the sale of equipment was $1,419. Concord sold for $8,600 on account inventory that cost $6,020. (Concord records sales under a perpetual inventory system.) 23 Salaries and wages of $11,352 were paid. Adjustment data: 1. Concord estimates that uncollectible accounts receivable at year-end are $6,880. 2. The note receivable is a one-year, 8% note dated April 1, 2025. No interest has been recorded. 3. The balance in prepaid insurance represents payment of a $6,192, 6-month premium on September 1, 2025. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $51,600. 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, 2025, is being depreciated using the straight-line method over 5 years, with a salvage value of $3,096. 7. The patent was acquired on January 1, 2025, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2025, total $3,784. 9. Both the short-term and long-term notes payable are dated January 1, 2025, and carry a 10% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $25,800. It was unpaid at December 31. - / 15.5 E (a) Prepare journal entries for the transactions listed above and adjusting entries. (List all debit entries before credit 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 O for the amounts. Record journal entries in the order presented in the problem.) Date No. Account Titles and Explanation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. (To record depreciation expense on equipment.) (To record sale of equipment.) (To record sales revenue.) (To record cost of goods sold.) Debit Credit