Martinez Corp.'s unadjusted trial balance at December 1, 2017, is presented below. Debit Credit $26,000 36,100 9,700 0 36,460 3,900 21,300 137,400 62,000 10,620 Cash Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patent Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Notes Payable (due April 30, 2018) Income Taxes Payable Interest Payable Notes Payable (due in 2023) Common Stock Retained Earnings Dividends $600 45,800 24,800 27,200 0 12,700 0 35,100 56,000 32,780 13,500 925,500 0 Sales Revenue Interest Revenue Ga on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold 0 637.500 0 Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense Total 0 62.000 104,000 $1,100,480 $1,100,400 The following transactions occurred during December Dec.2 Purchased equipment for $10,000, plus sales taxes of $600 (od in cash) 2 Martinez sold for $3.500 eguiment which originally cost $5,400. Accumulated depreciation on this ment anuary 1, 2017, was $1.500, 2017 depreciation prior to the sale of equipment was 1400 15 Martinez sold for $5,350 on account inventory that cost $9,350. 23 Salaries and wages of $6,730 were paid Adjustment data 1. Martinez estimates that uncollectible accounts receivable at year-end are $3.970. 2. The note receivable is a one-year note dated Aeril 1, 2017. No interest has been recorded. 3. The balance in prepaid insurance represents payment of a $3,000, 6-month premium on September 1, 2017 4. The building is being deprecated using the straight line method over 30 years. The salvage value is $30,000 5. The equipment owned prior to this year is being deprecated using the straight-line method over 5 years. The salvage value is 10% of com 6. The equipment purchased on December 2, 2017, is being deprecated using the straight-line method over 5 years, with a salvage value of $2,400 7. The patent was acquired on January 1, 2017, and has a useful le of years from that date. 8. Unpaid salaries at December 31, 2017, total $2,000. 9. Both the short-term and long-term notes paratie are dated January 1, 2017, and Calya 10% interest rate. All interest is pavable in the next 12 months 10 Income tax expense was $12,200. It was paldo December 31 Prepare Journal entries for the transactions listed above and adjusting entries. (Credit accountitles are automatically indented when amount is entered. Do not inderat manually. If entry is required, select "No Entry for the account titles and enter for the amounts. Record journal entries in the order presented to the problem.) Date Account Titles and Explanation Debit Credit (a) Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are auto "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order pre- Date Account Titles and Explanation Debit Credit (To record depreciation expense on equipment.) (To record sale of equipment.) (To record sales revenue.) (To record cost of goods sold) to search O 1 counting, be Help System Announcements