Hassellhouf Company's trial balance at December 31, 2020, is as follows. All 2020 transactions have been recorded except for the items described following the trial balance. Debit Credit Cash $25,000 Accounts Receivable 37,000 Notes Receivable 8,800 Interest Receivable 0 Inventory 36,200 Prepaid Insurance 4,500 Land 20,000 Buildings 136,200 Equipment 60,500 Patents 9,200 Allowance for Doubtful Accounts $550 Accumulated Depreciation-Buildings 45,400 Accumulated Depreciation-Equipment 24,200 Accounts Payable 27,000 Salaries and Wages Payable 0 Unearned Rent Revenue 1,800 Notes Payable (due in 2018) 12,000 Interest Payable 0 Notes Payable (due after 2018) 35,500 Owner's Capital 109,750 Owner's Drawings 12,500 Sales Revenue 901,000 Interest Revenue 0 Rent Revenue 0 Gain on Disposal of Plant Assets 0 Bad Debts Expense 0 Cost of Goods Sold 639,000 Depreciation Expense 0 Insurance Expense 0 0 0 Rent Revenue Gain on Disposal of Plant Assets Bad Debts Expense Cost of Goods Sold Depreciation Expense Insurance Expense Interest Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense Total 639,000 0 0 0 61,300 0 107,000 $1,157,200 $1,157,200 1. 2. Unrecorded transactions: On May 1, 2020, Hassellhouf purchased equipment for $15,900 plus sales taxes of $900 (all paid in cash). On July 1, 2020, Hassellhouf sold for $3,500 equipment which originally cost $5,100. Accumulated depreciation on this equipment at January 1, 2020, was $1,800; 2020 depreciation prior to the sale of the equipment was $450. 3. On December 31, 2020, Hassellhouf sold on account $5,000 of inventory that cost $3,300. 4. Hassellhouf estimates that uncollectible accounts receivable at year-end is $4,000. 5. The note receivable is a one-year, 8% note dated April 1, 2020. No interest has been recorded. 6. The balance in prepaid insurance represents payment of a $4,500 6-month premium on September 1, 2020. 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, 2020, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,400 10. The patent was acquired on January 1, 2020, and has a useful life of 10 years from that date 11. Unpaid salaries and wages at December 31, 2020, total $2,100. The unearned rent revenue of $1,800 was received on December 1, 2020, for 3 months' rent. Both the short-term and long-term notes payable are dated January 1, 2020, and carry a 9% interest rate. All interest is payable in the next 12 months. 12. 13. 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 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. 5. 6. 7. 8. 9. 10. 11. 12. 13