Ivanhoe Corporation's balance sheet at December 31, 2021, is presented below. IVANHOE CORPORATION Balance Sheet December 31, 2021 Cash $31.000 Accounts payable Inventory 26,300 Interest payable Prepaid insurance 5,000 Bonds payable Equipment 42.200 Common stock Retained earnings $104,500 $14,300 2,300 46,000 20,600 21,300 $104,500 During 2022, the following transactions occurred. Ivanhoe uses a perpetual Inventory system. 1. Ivanhoe paid $2,300 interest on the bonds on January 1, 2022 2 Ivanhoe purchased $242.200 of inventory on account 3. Ivanhoe sold for $445,700 cash inventory which cost $250,800. Ivanhoe also collected $26,742 sales taxes. 4. Ivanhoe paid $228,100 on accounts payable. 5. Ivanhoe paid $2,300 Interest on the bonds on July 1, 2022. 6. The prepaid insurance ($5,000) expired on July 31. 7. On August 1. Ivanhoe paid $12,000 for insurance coverage from August 1, 2022, through July 31, 2023, Ivanhoe paid $24.600 sales taxes to the state. 9. Pald other operating expenses, $90,300 Redeemed the bonds on December 31, 2022, by paying $44,160 plus $2,300 interest Issued $90.700 of 8% bonds on December 31, 2022 at 103. The bonds pay interest every June 30 and 11. December 31 8. 10. Adjustment data: 1 2 Recorded the insurance expired from item 7 The equipment was acquired on December 31, 2021, and will be depreciated on a straight line basis over 5 years with a $3.000 salvage value. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) 3 Your answer is partially correct Prepare journal entries for the transactions listed above. (Credit account titles are automatically indented when the 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 Interest Pile 1. Cash 2. (To record sales revenue) (To record cost of goods sold.) 5. 6 7. 3 9 (Tb rond het of bond Prepare the adjusting entries. (Credit account titles are automatically indented when the 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.) No. Account Titles and Explanation Debit Credit 1. (to adjust insurance expense) 2. (to adjust depreciation expense) 3 (to adjust income tax expense) e Textbook and Media List of Accounts Save for Later Attempts: unlimited Submit