Sunland Corporations balance sheet at December 31, 2021, is presented below SUNLAND CORPORATION Balance Sheet December 31, 2021 Cash $29,500 Accounts payable $14,400 Inventory 24,700 Interest payable 2,700 Prepaid insurance 5,500 Bonds payable 54,000 Equipment 43,600 Common stock 19,100 Retained earnings 13,100 $103,300 $103,300 During 2022, the following transactions occurred Sunland uses a perpetual inventory system 1 Sunland paid $2,700 interest on the bonds on January 1, 2022 2 Sunland purchased $238,900 of inventory on account 3 Sunland sold for $445,900 cash inventory which cost $251,000 Sunland also collected $26,754 sales taxes 4 Sunland paid $231,300 on accounts payable 5 Sunland paid $2,700 interest on the bonds on July 1, 2022 6 The prepaid insurance ($5,500) expired on July 31 7 On August 1, Sunland paid $12,000 for insurance coverage from August 1, 2022, through July 31, 2023 8 Sunland paid $23,800 sales taxes to the state 9 Paid other operating expenses, $95,000 10 Redeemed the bonds on December 31, 2022, by paying $51,840 plus $2,700 interest 11 Issued $91,800 of 8 bonds on December 31, 2022, at 103 The bonds pay interest every June 30 and December 31 Adjustment data 1 Recorded the insurance expired from item 7 2 The equipment was acquired on December 31, 2021, and will be depreciated on a straight line basis over 5 years with a $3,000 salvage value 3 The income tax rate is 30 ( Hint Prepare the income statement up to income before taxes and multiply by 30 to compute the amount ) (a) Prepare journal entries for the transactions listed above (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No entry for the account titles and enter Ofor the amounts ) No Account Titles and Explanation Debit Credit 1 2 3 (To record sales revenue ) (To record cost of goods sold ) Prepare the adjusting entries (Credit account titles are automatically indented when the amount is entered Do not indent manually If no entry is required, select No entry for the account titles and enter Ofor the amounts ) No Account Titles and Explanation Debit Credit 1 (to adjust insurance expense) 2 (to adjust depreciation expense) 3 (to adjust income tax expense)

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Sunland Corporations balance sheet at December 31, 2021, is presented below. SUNLAND CORPORATION Balance Sheet December 31, 2021 Cash $29,500 Accounts payable $14,400 Inventory 24,700

Sunland Corporations balance sheet at December 31, 2021, is presented below.

SUNLAND CORPORATION Balance Sheet December 31, 2021
Cash	$29,500	Accounts payable	$14,400
Inventory	24,700	Interest payable	2,700
Prepaid insurance	5,500	Bonds payable	54,000
Equipment	43,600	Common stock	19,100
		Retained earnings	13,100
	$103,300		$103,300

During 2022, the following transactions occurred. Sunland uses a perpetual inventory system.

1.		Sunland paid $2,700 interest on the bonds on January 1, 2022.
2.		Sunland purchased $238,900 of inventory on account.
3.		Sunland sold for $445,900 cash inventory which cost $251,000. Sunland also collected $26,754 sales taxes.
4.		Sunland paid $231,300 on accounts payable.
5.		Sunland paid $2,700 interest on the bonds on July 1, 2022.
6.		The prepaid insurance ($5,500) expired on July 31.
7.		On August 1, Sunland paid $12,000 for insurance coverage from August 1, 2022, through July 31, 2023.
8.		Sunland paid $23,800 sales taxes to the state.
9.		Paid other operating expenses, $95,000.
10.		Redeemed the bonds on December 31, 2022, by paying $51,840 plus $2,700 interest.
11.		Issued $91,800 of 8% bonds on December 31, 2022, at 103. The bonds pay interest every June 30 and December 31.

Adjustment data:

1.		Recorded the insurance expired from item 7.
2.		The equipment was acquired on December 31, 2021, and will be depreciated on a straight-line basis over 5 years with a $3,000 salvage value.
3.		The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)

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(a) Prepare journal entries for the transactions listed above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter Ofor the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 3. (To record sales revenue.) (To record cost of goods sold.) Prepare the adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter Ofor the amounts.) No. Account Titles and Explanation Debit Credit 1. (to adjust insurance expense) 2. (to adjust depreciation expense) 3. (to adjust income tax expense)