Sarasota Corp's unadjusted trial balance at December 1, 2022, is presented below. Debit Credit Cash $35,200 Accounts Receivable 58,880 Notes Receivable. 16.000 Interest Receivable 0 Inventory 57.920 Prepaid Insurance 5,760 Land 32,000 Buildings 240,000 Equipment Patent 96,000 14,400 Allowance for Doubtful Accounts Accumulated Depreciation- $800 Accumulated Depreciation- Equipment 38,400 Accounts Payable Salaries and Wages Payable Notes Payable (due April 30, 2023) 43.680 0 Cost of Goods Sold 1,008,000 0 17,600 Depreciation Expense Income Tax Expense 0 Income Taxes Payable B Interest Payable 0 Insurance Expense 0 Notes Payable (due in 2028) 56,000 Interest Expense 0 Common Stock B0,000 4 Retained Earnings Other Operating Expenses 98,880 101,760 Dividends 19,200 Amortization Expense 0 Sales Revenue Interest Revenue Gain on Disposal of Plant Assets 1,440,000 Salaries and Wages Expense 176,000 0 Total $1,858,240 $1,858,240 0 80.000 Buildings Bad Debt Expense Accumulated Depreciation- 38.400 Cost of Goods Sold 1,008.000 The following transactions occurred during December. Dec. 2 2 Purchased equipment for $25,600, plus sales taxes of $1,280 (paid in cash). Sarasota sold for $5,600 equipment which originally cost $8,000. Accumulated depreciation on this equipment at January 1,2022, was $2,880; 2022 depreciation prior to the sale of equipment was $1,320. 15 Sarasota sold for $8,000 on account inventory that cost $5,600. 23 Salaries and wages of $10,560 were paid. Adjustment data: 1. Sarasota estimates that uncollectible accounts receivable at year-end are $6,400. 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 $5,760, 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 $48,000. 5. 6. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value i 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 $2,880. 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 $3,520. 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 $24,000. It was unpaid at December 31. Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record depreciation expense on equipment.) Debit Credit Cash Accounts Receivable Interest Receivable Inventory SARASOTA CORP. Adjusted Trial Balance December 31, 2022 Debit 2.700 40300 546 30000 Prepaid Insurance 1,200 Land Buildings 19,400 162,000 Equipment 74900 Credit