Martinez Corp's unadjusted trial balance at December 1, 2022, is presented below. Debit Credit Cash $22,700 35,300 10,200 Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance 39.100 3,600 Land 19,500 159.000 Buildings Equipment Patent 62,000 9,000 $400 53,000 24,800 28,300 0 11,100 0 0 Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Notes Payable (due April 30, 2023) Income Taxes Payable Interest Payable Notes Payable (due in 2028) Common Stock Retained Earnings Dividends Sales Revenue Interest Revenue Gain on Disposal of Plant Assets Bad Debt Expense 36,300 55,000 85,700 10,900 903,000 0 0 Cost of Goods Sold 654,000 Depreciation Expense 0 0 654,000 0 0 0 Bad Debt Expense Cost of Goods Sold Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense Total 0 64,300 0 108,000 $1,197,600 $1.197,600 The following transactions occurred during December. Dec. 2 2 Purchased equipment for $16,700, plus sales taxes of $900 (paid in cash). Martinez sold for $3,800 equipment which originally cost $5,100. Accumulated depreciation on this equipment at January 1, 2022, was $1,800; 2022 depreciation prior to the sale of equipment was $875. Martinez sold for $4,700 on account inventory that cost $3,700. Salaries and wages of $6,600 were paid for December. 15 23 Adjustment data: 1. 2. 3. 4. Martinez estimates that uncollectible accounts receivable at year-end are $3,900. The note receivable is a 1-year, 8% note dated April 1, 2022. No interest has been recorded. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2022. The building is being depreciated using the straight-line method over 30 years. The salvage value is $33,000. 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. The equipment purchased on December 2, 2022, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,400. The patent was acquired on January 1, 2022, and has a useful life of 9 years from that date. 5. 6. 7. 8. 9. Unpaid salaries at December 31, 2022, total $2,400. Both the short-term and long-term notes payable are dated January 1, 2022, and carry a 10% interest rate. All interest is payable in the next 12 months. Income tax expense was $16,000. It was unpaid at December 31. 10 (a) Your Anawer Correct Answer Used Prepare journal entre for the transactions dabove and adjusting entries. (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 title and enter for the amounts. Record journal entries in the order presented in the problem.) ate Account Titles and Explanation Debit Credit Balment 17.800 Depreciation Expanse Accumulated Depreciation Equipment (To record depreciation expense on equipment Cath 2000 Accumulated Depreciation-Beulement 2.673 Equipment 5.300 1.279 Gainen lupault Plant Ante (To record sale of equipment Assunta Realabile 400 Sala Raven 4.700 (To record als revenue Coet of Good Solid 2.700 Inventory 2.700 (To record coat of goods sold Salaries and Wagas para 300 Ch 8.800