Indigo Corporations unadjusted trial balance at December 1, 2017, is presented below.

	Debit		Credit
Cash	$26,300
Accounts Receivable	35,000
Notes Receivable	9,000
Interest Receivable	0
Inventory	36,270
Prepaid Insurance	3,900
Land	20,700
Buildings	156,600
Equipment	61,000
Patent	9,720
Allowance for Doubtful Accounts			$600
Accumulated DepreciationBuildings			52,200
Accumulated DepreciationEquipment			24,400
Accounts Payable			27,000
Salaries and Wages Payable			0
Notes Payable (due April 30, 2018)			11,700
Income Taxes Payable			0
Interest Payable			0
Notes Payable (due in 2023)			35,200
Common Stock			53,400
Retained Earnings			48,590
Dividends	12,500
Sales Revenue			925,500
Interest Revenue			0
Gain on Disposal of Plant Assets			0
Bad Debt Expense	0
Cost of Goods Sold	637,500
Depreciation Expense	0
Income Tax Expense	0
Insurance Expense	0
Interest Expense	0
Other Operating Expenses	61,600
Amortization Expense	0
Salaries and Wages Expense	108,500
Total	$1,178,590		$1,178,590

The following transactions occurred during December.

Dec. 2		Purchased equipment for $17,400, plus sales taxes of $1,200 (paid in cash).
2		Indigo sold for $3,600 equipment which originally cost $5,400. Accumulated depreciation on this equipment at January 1, 2017, was $1,800; 2017 depreciation prior to the sale of equipment was $490.
15		Indigo sold for $5,050 on account inventory that cost $3,490.
23		Salaries and wages of $6,770 were paid.

Adjustment data:

1.		Indigo estimates that uncollectible accounts receivable at year-end are $3,840.
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 $3,900, 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 $31,500.
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 $1,980.
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 $2,010.
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.
10		Income tax expense was $13,700. It was unpaid at December 31.

1, Prepare the journal entries

2. Prepare an adjusted trial balance

3. Prepare the income statement

4. Prepare a balance sheet