Milo Corporation's unadjusted trial balance at December 1, 2017, is presented below.

	Debit	Credit
Cash	$22,000
Accounts Receivable	36,800
Notes Receivable	10,000
Interest Receivable	-0-
Inventory	36,200
Prepaid Insurance	3,600
Land	20,000
Buildings	150,000
Equipment	60,000
Patent	9,000
Allowance for Doubtful Accounts		$500
Accumulated DepreciationBuildings		50,000
Accumulated DepreciationEquipment		24,000
Accounts Payable		27,300
Salaries and Wages Payable		-0-
Notes Payable (due April 30, 2018)		11,000
Income Taxes Payable		-0-
Interest Payable		-0-
Notes Payable (due in 2023)		35,000
Common Stock		50,000
Retained Earnings		63,600
Dividends	12,000
Sales Revenue		900,000
Interest Revenue		-0-
Gain on Disposal of Plant Assets		-0-
Bad Debt Expense	-0-
Cost of Goods Sold	630,000
Depreciation Expense	-0-
Income Tax Expense	-0-
Insurance Expense	-0-
Interest Expense	-0-
Other Operating Expenses	61,800
Amortization Expense	-0-
Salaries and Wages Expense	110,000
	$1,161,400	$1,161,400

The following transactions occurred during December.

Dec.	2	Purchased equipment for $16,000, plus sales taxes of $800 (paid in cash).
	2	Milo sold for $3,500 equipment which originally cost $5,000. Accumulated depreciation on this equipment at January 1, 2017, was $1,800; 2017 depreciation prior to the sale of equipment was $825.
	15	Milo sold for $5,000 on account inventory that cost $3,500.
	23	Salaries and wages of $6,600 were paid.

Adjustment data:

• 1.Milo estimates that uncollectible accounts receivable at year-end are $4,000.
• 2.The note receivable is a 1-year, 8% note dated April 1, 2017. No interest has been recorded.
• 3.The balance in prepaid insurance represents payment of a $3,600, 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 $30,000.
• 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 $1,800.
• 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 $2,200.
• 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 $15,000. It was unpaid at December 31.

Instructions

(a) Prepare journal entries for the transactions listed above and adjusting entries.

(b) Prepare an adjusted trial balance at December 31, 2017. Totals $1,205,775

(c) Prepare a 2017 income statement and a 2017 retained earnings statement. Net income $50,775

(d) Prepare a December 31, 2017, balance sheet. Total assets $247,475