Novak Corp.s balance sheet at December 31, 2021, is presented below.

NOVAK CORP. Balance Sheet December 31, 2021
Cash		$39,360			Accounts payable		$40,960
Accounts receivable		72,800			Common stock ($10 par)		128,000
Allowance for doubtful accounts		(2,400	)		Retained earnings		203,840
Supplies		7,040
Land		64,000
Buildings		227,200
Accumulated depreciationbuildings		(35,200	)
		$372,800					$372,800

During 2022, the following transactions occurred.

1.		On January 1, Novak issued 1,920 shares of $40 par, 7% preferred stock for $78,720.
2.		On January 1, Novak also issued 1,440 shares of the $10 par value common stock for $33,600.
3.		Novak performed services for $512,000 on account.
4.		On April 1, 2022, Novak collected fees of $57,600 in advance for services to be performed from April 1, 2022, to March 31, 2023.
5.		Novak collected $441,600 from customers on account.
6.		Novak bought $56,160 of supplies on account.
7.		Novak paid $51,520 on accounts payable.
8.		Novak reacquired 640 shares of its common stock on June 1 for $28 per share.
9.		Paid other operating expenses of $301,120.
10.		On December 31, 2022, Novak declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2023.
11.		An account receivable of $2,720 which originated in 2022 is written off as uncollectible.

Adjustment data:

1.		A count of supplies indicates that $9,440 of supplies remain unused at year-end.
2.		Recorded revenue from item 4 above.
3.		The allowance for doubtful accounts should have a balance of $5,600 at year end.
4.		Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $16,000.
5.		The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

(a)

Prepare journal entries for the transactions listed above 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 titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)