prepare a retained earnings statment
The following transactions occurred during December. Dec. Purchased equipment for $31,360, plus sales taxes of $1,568 (paid in cash). 2. 2 Blue sold for $6,860 equipment which originally cost $9,800. Accumulated depreciation on this equipment at January 1 , 2022 , was $3,528;2022 depreciation prior to the sale of equipment was $1,617. 15 Blue sold for $9,800 on account inventory that cost $6,860. 23 Salaries and wages of $12,936 were paid. 1. Blue estimates that uncollectible accounts receivable at year-end are $7.840. 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 $7,056,6-month premium on September 1,2022. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $58,800. 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 $3,528. 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 $4,312. 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 $29,400. It was unpaid at December 31. The following transactions occurred during December. Dec. Purchased equipment for $31,360, plus sales taxes of $1,568 (paid in cash). 2. 2 Blue sold for $6,860 equipment which originally cost $9,800. Accumulated depreciation on this equipment at January 1 , 2022 , was $3,528;2022 depreciation prior to the sale of equipment was $1,617. 15 Blue sold for $9,800 on account inventory that cost $6,860. 23 Salaries and wages of $12,936 were paid. 1. Blue estimates that uncollectible accounts receivable at year-end are $7.840. 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 $7,056,6-month premium on September 1,2022. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $58,800. 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 $3,528. 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 $4,312. 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 $29,400. It was unpaid at December 31
