On January $1,2024,$ the general ledger of Parts Unlimited includes the following account balances:

Accounts Title Debit Credit

Cash $ $165,400$

Accounts Receivable $15,400$

Inventory $40,800$

Land $343,000$

Equipment $350,500$

Accumulated depreciation $ $175,000$

Accounts Payable $17,800$

Common stock $523,000$

Retained Earnings $199,300$

Totals $ $915,100$ $ $915,100$

From January $1$ to December $31,$ the following summary transactions occurred:

Purchased inventory on account, $$328,800.$

Sold inventory on account, $$577,200.$ The inventory cost $$345,600.$

Received cash from customers on account, $$561,700.$

Paid cash on account, $$331,500.$

Paid cash for salaries, $$97,700,$ and for utilities, $$55,700.$

In addition, Parts Unlimited had the following transactions during the year:

April $1$ Purchased equipment for $$98,000$ using a note payable, due in $12$ months plus $6\%$ interest. The company also paid cash of $$3,500$ for freight and $$4,100$ for installation and testing of the equipment. The equipment has an estimated residual value of $$13,600$ and a $10-$year service life.

June $30$ Purchased a patent for $$43,000$ from a third$-$party marketing company related to the packaging of the company$$s products. The patent has a $20-$year useful life, after which it is expected to have no value.

October $1$ Sold equipment for $$33,500.$ The equipment cost $$63,700$ and had accumulated depreciation of $$40,400$ at the beginning of the year. Additional depreciation for $2024$ up to the point of the sale is $$8,800.($Hint: Total accumulated depreciation equals the amount at the beginning of the year plus the amount recorded for the current year.$)$

November $15$ Several older pieces of equipment were improved by replacing major components at a cost of $$57,100.$ These improvements are expected to enhance the equipment$$s operating capabilities. $[$Record this transaction using Alternative $2$capitalization of new cost.$]$

Year$-$end adjusting entries:

Depreciation on the equipment purchased on April $1,2024,$ calculated using the straight$-$line method.

Depreciation on the remaining equipment, $$24,500.$

Amortization of the patent purchased on June $30,2021,$ using the straight$-$line method.

Accrued interest payable on the note payable.

Equipment with an original cost of $$68,700$ had the following related information at the end of the year: accumulated depreciation of $$43,300,$ expected cash flows of $$16,000,$ and a fair value of $$12,300.$

Accrued income taxes at the end of the year are $$15,600.$