Pronghorn Corp's unadjusted trial balance at December 1, 2017, is presented below. Credit Debit $27,100 36,600 8,700 0 Cash Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patent Allowance for Doubtful Accounts Accumulated Depreciation-Build Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Notes Pavable (due April 30 2018) 36,480 3,900 21,700 157,500 61,500 9.990 $450 52,500 24,600 28,200 0 11.900 U 0 35,400 57,600 37.720 13,000 935,000 o 0 Taxes Payable Interest Payable Notes Payable (due in 2023) Common Stock Retained Earnings 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 Total 0 639,000 0 0 0 0 61,400 0 106,500 $1,183.370 $1.183.370 The following transactions occurred during December. Dec 2 Purchased equipment for $16,800, plus sales taxes of $1,200 (paid in cash). 2 Pronghorn sold for $3,500 equipment which originally cost $5,000. Accumulated depreciation on this equipment at January 1, 2017 was $1,950, 2017 depreciation prior to the sale of equipment was $400, Pronghorn sold for $5.200 on account inventory that cost $3.480, Salaries and wages of $6,660 were paid. 15 23 Adjustment data: 1. 2 3 4. 5. 6. Pronghorn estimates that uncollectible accounts receivable at year-end are $4.120. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. The balance in prepaid insurance represents payment of a $3,900, 6-month premium on September 1, 2017 The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,300. 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. The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $2.040. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. Unpaid salaries at December 31, 2017, total $2,030. Both the short-term and long-term notes payable are dated January 1, 2017 and carry a 10% interest rate. All interest is payable in the next 12 months. Income tax expense was $14.500. It was unpaid at December 31. 7 8. 9 10 Prepare a 2017 income statement. PRONGHORN CORP Income Statement $