Part C1, prepare a 2025 income statement

Swifty Corporation's unadjusted trial balance at December 1,2025 , is presented below. The following transactions occurred during December. Dec. 2 Purchased equipment for $30,080, plus sales taxes of $1,504 (paid in cash). 2 Swifty sold for $6,580 equipment which originally cost $9,400. Accumulated depreciation on this equipment at January 1,2025 , was $3,384;2025 depreciation prior to the sale of equipment was $1,551. 15 Swifty sold for $9,400 on account inventory that cost $6,580. (Swifty records sales under a perpetual inventory system.) 23 Salaries and wages of $12,408 were paid. Adjustment data: 1. Swifty estimates that uncollectible accounts receivable at year-end are $7,520. 2. The note receivable is a one-year, 8% note dated April 1,2025 . No interest has been recorded. 3. The balance in prepaid insurance represents payment of a \$6,768, 6-month premium on September 1, 2025. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $56,400. 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 2,2025 , is being depreciated using the straight-line method over 5 years, with a salvage value of $3,384. 7. The patent was acquired on January 1,2025 , and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31,2025 , total $4,136. 9. Both the short-term and long-term notes payable are dated January 1,2025 , and carry a 10% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $28,200. It was unpaid at December 31. Prebare iournal entries for the transactions listed above and adiusting entries. (List all debit entries before credit entries. Credit acc acc 2. Interest Receivable 1,134 Interest Revenue 1,134 3. Insurance Expense 4,512 Prepaid Insurance 4. Depreciation Expense 7,520 Accumulated Depreciation-Buildings 5. Depreciation Expense 18,612 Accumulated Depreciation-Equipment 6. Depreciation Expense Accumulated Depreciation-Equipment 7. Amortization Expense Patents 8. Salaries and Wages Expense Salaries and Wages Payable 9. Interest Expense Interest Payable 10. Income Tax Expense Income Tax Payable SWIFTY CORPORATION Adjusted Trial Balance December 31, 2025 Debit Cash Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patents Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Notes Payable Income Tax Payable Interest Payable Common Stock Retained Earnings Dividends Credit 78,584 18,900 2,256 37,600 282,000 134,984 22,560 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 Totals (c1) Prepare a 2025 income statement. (List other revenues and gains before other expenses and losses.) SWIFTY CORPORATION Income Statement $ $ $ eTextbook and Media