The following tranaction occurred during December. Dec. 2 Purchased equipment for 516,640 , plus sales tues of $832 (paid in cash). 2 Ayaya sole for $3,640 equipernent which orighally cost $5,200. Accumulated depreciation on this equipment at lanciary 1,2025 , was 51,872;2025 depreciation prior to the sale of equipment was $858. 23 Salaries and wages of $6.864 were paid. Adjustment data: 1. Ayayal estimates that uncollectible accounts receivable at year end are 54 it 60 . 2. The note receivable a one-year, 85 note dated April 1.2025 . No intereat has been recorded. 3. The balance in prepaid insurance represents payment of a 537744.6 -month premium cn Septenber 1.2025 4. The bulding is being depreciated using the straight-4ine method over 30 years. The sahape value is 531,200 5. The equipment owned prior to this year is being depreciuted using the straicht-fine method over 5 years. The saivage value is 10% of coit. 6. The equlpment purchased on December 2, 2025, is being depreciated usine the straipht-line method over 5 yean with a ralvage value of 51 inz. 7. The patent was acquind on lanuary 1,2025, and has a useful life of 9 years frem that date. 8. Unpaid salaries at December 31,2025 , totai 52,288 payable in the nod 12 months 10. Income taxe expense was 515,600 . It was unpaid at Deceenber 31. (a) Prepare journal entries for the tranactions fasted atoove and adjusting entries, alat af debit entriks before ondit entries Crest Ayayai Corp's unadjusted trial bal ance at December 1,2025, is presented below. \begin{tabular}{|c|c|c|} \hline & Debit & Credit \\ \hline Cash & 522,880 & \\ \hline Accounts Recerivable & 38.272 & \\ \hline Notes Rectivable: & 10s00 & \\ \hline Intereat Recelvable & 0 & \\ \hline Imentory & 37.64a & \\ \hline Prepaid lnaurance: & 3,744 & \\ \hline Land & 20000 & \\ \hline Baildings: & 156,000 & \\ \hline quipment: & 62,400 & \\ \hline Patent: & 9360 & \\ \hline Allowance for Doubthot Accounts & & 3520 \\ \hline Accimulated Depreciation-8ulding. & & 52000 \\ \hline Acrumulated Depreciasion-Equipent & & 24960 \\ \hline Accounta Payble & & 28.392 \\ \hline Salaries and Wapes Parate: & 38 & 0 \\ \hline Notes Papble (doe Apriso, 2026) & & 11,440 \\ \hline Income Taxes Parable & & 0 \\ \hline interest Payable & & 0 \\ \hline Notes Pryable ldue in2031] & & 36.400 \\ \hline CommenStock & 4; & 52,000 \\ \hline Retahed Exrning & & cos24 \\ \hline Dividends & 12480 & \\ \hline Saies Rewonoe- & & 936,000 \\ \hline Interest Revensie & & o \\ \hline Cah en Dapolal of Purt Assets & & 0 \\ \hline Bad Debt Expense & 0 & \\ \hline Cost of Coods Sole & 855,700 & \\ \hline Depreciation Exproe & 0 & \\ \hline income Jar Expense & 10 & \\ \hline Insurance Dypente & 0 & \\ \hline intereat Erpense & 0 & \\ \hline Other Operatins Expenses & 64.272 & 12 \\ \hline Amertization Bopende & 0 & \\ \hline Salaries and waper Expense & 114,400 & \\ \hline Tote & 31207.956 & 31207,956 \\ \hline \end{tabular} (Torkcord wik of equipent) (Ta record oles rovenue) (ito record cont of peods rold) 1. 2. J. s. 4. 7
