Question $1$ of $2$

$\frac{0\mathrm{.}74}{2\mathrm{.}5}$

Your answer is partially correct.

Prepare an adjusted trial balance at December $31,2022.$

AYAYAI CORP.

Adjusted Trial Balance

December $31,2022$

Debit

Credit

Equipment

$

$$

$q,$ Credit

$$ Cash

$$ Depreciation Expense

Accumulated Depreciation$-$Equipment

$$

$ $$

$$

$$

$$

$$

$$

$$

$$

$9500$

$$

$$

$$

$$

$1575$

$$

Accounts Receivable

$$ Ayayai estimates that uncollectible accounts receivable at year$-$end are $$4,100.$

The note receivable is a $1-$year, $8\%$ note dated April $1,2022.$ No interest has been recorded.

The balance in prepaid insurance represents payment of a $$3,600,6-$month premium on September $1,2022.$

The building is being depreciated using the straight$-$line method over $30$ years. The salvage value is $$30,000.$

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 $2,2022,$ is being depreciated using the straight$-$line method over $5$ years, with a

salvage value of $$1,400.$

The patent was acquired on January $1,2022,$ and has a useful life of $9$ years from that date.

Unpaid salaries at December $31,2022,$ total $$2,500.$

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 $$13,000.$ It was unpaid at December $31.$

$($a$)$