Hassellhouf Companys trial balance at December 31, 2017, is presented below. All 2017 transactions have been recorded except for the items described below. Debit Credit Cash $28,000 Accounts Receivable 35,600 Notes Receivable 9,400 Interest Receivable 0 Inventory 36,500 Prepaid Insurance 3,600 Land 21,000 Buildings 135,000 Equipment 63,000 Patents 9,600 Allowance for Doubtful Accounts $600 Accumulated DepreciationBuildings 45,000 Accumulated DepreciationEquipment 25,200 Accounts Payable 27,000 Salaries and Wages Payable 0 Unearned Rent Revenue 4,200 Notes Payable (due in 2018) 12,000 Interest Payable 0 Notes Payable (due after 2018) 35,000 Owners Capital 104,900 Owners Drawings 14,000 Sales Revenue 900,000 Interest Revenue 0 Rent Revenue 0 Gain on Disposal of Plant Assets 0 Bad Debts Expense 0 Cost of Goods Sold 633,000 Depreciation Expense 0 Insurance Expense 0 Interest Expense 0 Other Operating Expenses 61,200 Amortization Expense 0 Salaries and Wages Expense 104,000 Total $1,153,900 $1,153,900 Unrecorded transactions: 1. On May 1, 2017, Hassellhouf purchased equipment for $22,800 plus sales taxes of $600 (all paid in cash). 2. On July 1, 2017, Hassellhouf sold for $3,500 equipment which originally cost $4,400. Accumulated depreciation on this equipment at January 1, 2017, was $2,000; 2017 depreciation prior to the sale of the equipment was $450. 3. On December 31, 2017, Hassellhouf sold on account $7,500 of inventory that cost $5,250. 4. Hassellhouf estimates that uncollectible accounts receivable at year-end is $3,700. 5. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. 6. The balance in prepaid insurance represents payment of a $3,600 6-month premium on September 1, 2017. 7. The building is being depreciated using the straight-line method over 30 years. The salvage value is $33,000. 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, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,980. 10. The patent was acquired on January 1, 2017, and has a useful life of 10 years from that date. 11. Unpaid salaries and wages at December 31, 2017, total $4,800. 12. The unearned rent revenue of $4,200 was received on December 1, 2017, for 3 months rent. 13. Both the short-term and long-term notes payable are dated January 1, 2017, and carry a 9% interest rate. All interest is payable in the next 12 months. Collapse question part (a) Prepare journal entries for the transactions listed above. (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.) No. Account Titles and Explanation Debit Credit 1. 2. (To record depreciation expense.) (To record sale of equipment.) 3. (To record sales revenue.) (To record cost of goods sold.) 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.