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

The following transactions occurred during December.

Dec. 2		Purchased equipment for $23,680, plus sales taxes of $1,184 (paid in cash).
2		Pina sold for $5,180 equipment which originally cost $7,400. Accumulated depreciation on this equipment at January 1, 2022, was $2,664; 2022 depreciation prior to the sale of equipment was $1,221.
15		Pina sold for $7,400 on account inventory that cost $5,180.
23		Salaries and wages of $9,768 were paid.

Adjustment data:

1.		Pina estimates that uncollectible accounts receivable at year-end are $5,920.
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 $5,328, 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 $44,400.
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, 2022, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,664.
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 $3,256.
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 $22,200. It was unpaid at December 31. Prepare journal entries for the transactions listed above and adjusting entries.

Debit Credit Cash $32,560 $ Accounts Receivable 54,464 Notes Receivable 14,800 Interest Receivable 0 Inventory 53.576 Prepaid Insurance 5,328 Land 29,600 222,000 Buildings Equipment 88,800 Patent 13.320 Allowance for Doubtful Accounts $740 Accumulated Depreciation- Buildings 74.000 35.520 Accumulated Depreciation- Equipment Accounts Payable 40.404 Salaries and Wages Payable 0 Notes Payable (due April 30, 2023) 16.280 0 Income Taxes Payable Interest Payable 0 Notes Payable (due in 2028) 51,800 Common Stock 74.000 Retained Earnings 94,128 Dividends 17,760 Sales Revenue 1.332.000 Interest Revenue 0 Gain on Disposal of Plant Assets 0 Bad Debt Expense 0 Cost of Goods Sold 932.400 Depreciation Expense 0 Income Tax Expense 0 0 Insurance Expense Interest Expense 0 Other Operating Expenses 91,464 Amortization Expense 0 Salaries and Wages Expense 162.800 Total $1,718,872 $1,718,872 Record journal entries in the order presented in the problem. Date Account Titles and Explanation Debit Dec. 2 Equipment 24864 Cash Dec2 Depreciation Expense 1.221. Accumulated Depreciation Equipment To record depreciation expense on equipment) Cash 5.180 Accumulated Depreciation-Equipment 2.864 Gain on Disposal of Plant Aset Equipment To record sale of equipment.) Dec. 15 V Accounts Receivable 7.400 Sales Revenue UUU UUUUUUUUUUUUUUU (To record sales revenue Cost of Goods Sold 5,180. Inventory (To record cost of goods sold.) Dec.23 V Salaries and Wages Expense 9.768 Cash Dec 31 V 1. Bed Debt Expense 5.920 Allowance for Doubtful Accounts 2. Interest Receivable 888 Interest Revenue 3. Insurance Expense 3552 Prepaid Insurance 4. Depreciation Expense 5920 Accumulated Depreciation-Buildings 5. Depreciation Expanse Accumulated Depreciation Equipment 6. Depreciation Expense 1435 Accumulated Depreciation Equipment 7. Amortization Expense 1480 Patents &. Salaries and Wages Expense 3.255 Salaries and Wages Payable 9. Interest Expense 3108 Interest Payable 10. Income Tax Expense 22.200 Income Taxes Payable