Novak Corp.s unadjusted trial balance at December 1, 2022, is presented below.

Account	Debit	Credit
Cash	31,680
Accounts Receivable	52,992
Notes Receivable	14,400
Interest Receivable	0
Inventory	52,128
Prepaid Insurance	5,184
Land	28,800
Buildings	216,000
Equipment	86,400
Patent	12,960
Allowance for Doubtful Accounts		720
Accumulated DepreciationBuildings		72,000
Accumulated DepreciationEquipment		34,560
Accounts Payable		39,312
Salaries and Wages Payable		0
Notes Payable (due April 30, 2023)		15,840
Income Taxes Payable		0
Interest Payable		0
Notes Payable (due in 2028)		50,400
Common Stock		72,000
Retained Earnings		91,584
Dividends	17,280
Sales Revenue		1,296,000
Interest Revenue		0
Gain on Disposal of Plant Assets		0
Bad Debt Expense	0
Cost of Goods Sold	907,200
Depreciation Expense	0
Income Tax Expense	0
Insurance Expense	0
Interest Expense	0
Other Operating Expenses	88,992
Amortization Expense	0
Salaries and Wages Expense	158,400
Totals	1,672,416	1,672,416

The following transactions occurred during December.

Dec. 2	Purchased equipment for $23,040, plus sales taxes of $1,152 (paid in cash).
Dec. 2	Novak sold for $5,040 equipment which originally cost $7,200. Accumulated depreciation on this equipment at January 1, 2022, was $2,592; 2022 depreciation prior to the sale of equipment was $1,188.
Dec. 15	Novak sold for $7,200 on account inventory that cost $5,040.
Dec. 23	Salaries and wages of $9,504 were paid.

Adjustment data:

1	Novak estimates that uncollectible accounts receivable at year-end are $5,760.
2	The note receivable is a one-year, 8% note dated April 1, 2022. No interest has been recorded.
3	The balance in prepaid insurance represents payment of a $5,184, 6-month premium on September 1, 2022.
4	The building is being depreciated using the straight-line method over 30 years. The salvage value is $43,200.
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, 2022, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,592.
7	The patent was acquired on January 1, 2022, and has a useful life of 9 years from that date.
8	Unpaid salaries at December 31, 2022, total $3,168.
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.
10	Income tax expense was $21,600. It was unpaid at December 31.

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.)

Date	account	Debit	Credit
	(To record depreciation expense on equipment.)
	(To record sale of equipment.)
	(To record sales revenue.)
	(To record cost of goods sold.)
	1)
	2)
	3)
	4)
	5)
	6)
	7)
	8)
	9)
	10)

Prepare an adjusted trial balance at December 31, 2022.

account	debit	credit
totals

Prepare a 2022 income statement, 2022 retained earnings statement and a December 31, 2022, balance sheet.