Sales revenue was $$36,000,$ of which $$12,000$ was on credit; the cost of goods sold, provided using perpetual inventory, was $$23,400.$

Collected $$20,400$ cash on accounts receivable.

Paid $$4,800$ cash toward income taxes payable $($for Year $1)$

Purchased $$48,000$ of merchandise, of which $$9,600$ was on credit.

Paid $$7,200$ cash toward accounts payable.

Sales revenue was $$86,400($in cash$)$; cost was $$56,160.$

Paid $$22,800$ cash in operating expenses.

On July $1,$ Year $2,$ issued $1,200$ shares of common stock, par $$1,$ for $$1,200$ cash.

Purchased $$120,000$ of merchandise, of which $$32,400$ was on credit.

Sales revenue was $$117,600,$ of which $$36,000$ was on credit; cost of goods sold, $$76,440.$

Collected $$31,200$ cash toward accounts receivable.

Paid $$33,600$ cash toward accounts payable.

Paid $$21,600$ cash for various operating expenses.

Journal Entries T$-$Accounts Unadjusted Trial Balance

T$-$Acounts after Adjusting Journal Entries

d$.$ Prepare December $31,$ Year $2,$ adjusting entries for the following additional information.

Increase Allowance for Doubtful Accounts by $$240.$ Hint: Debit Operating Expenses.

Accrued income tax expense is $$14,141.$ Hint: Credit Income Taxes Payable.

Accrued salaries were $$360.$

Use straight$-$line depreciation for equipment.

Adjust Prepaid Insurance for current year expense