Novak Corp's unadjusted trial balance at December 1, 2022, is presented below. Credit 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, 2023) Income Taxes Payable Debit $21,300 36,600 10.700 0 36,000 3,600 21,500 159.000 64,000 9,000 $500 53,000 25,600 26,300 0 10,600 0 0 34,000 49,000 97,700 12.200 848,000 0 0 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 Cost of Goods Sold Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense Total 0 605,000 0 0 0 0 66,800 0 99,000 $1.144.700 $1.144,700 The following transactions occurred during December Dec. 2 2 Purchased equipment for $16,100, plus sales taxes of $ 700 (paid in cash). Novak sold for $3,300 equipment which originally cost $5,400. Accumulated depreciation on this equipment at January 1, 2022, was $1,800; 2022 depreciation prior to the sale of equipment was $775. Novak sold for $4,700 on account inventory that cost $3,600 Salaries and wages of $7,200 were paid for December 15 23 Adjustment data: 1. 2. 3. 4 5. Novak estimates that uncollectible accounts receivable at year-end are $3,600. 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 Septe 1.2022 The building is being depreciated using the straight-line method over 30 years. The salvage value is $27.000. 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 $1.800 The patent was acquired on January 1, 2022. and has a useful life of years from that date. Unpaid salaries at December 31, 2022. total $2,100, Both the short-term and long terminatesmavablarda 2022 and interest tellitestis 6. 7 8 9 9. 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 $14.000. It was unpaid at December 31 10 (a) Prepare journal entries for the transactions listed above and adjusting entries. (Cerdit account titles are automatically indented when amount is entered. Do not indent mortaally. If no entry is required, select "No Entry for the account titles and enter for the amounts. Record journal entries in the order presented in the problem Account Titles and Explanation Debit Crer Date Dec 2 Dec 2 To record depreciation expense on equipment To record depreciation expense on equipment.) (To record sale of equipment.) Dec. 15 [To record sales revenue.) To record cost of goods sold) Dec 23 11:26 - /25 7. 8. 9. 10