The following transactions occurred during December.
| Dec. 2 | | Purchased equipment for $16,200, plus sales taxes of $1,800 (paid in cash). |
| 2 | | Cheyenne sold for $3,500 equipment which originally cost $5,300. Accumulated depreciation on this equipment at January 1, 2017, was $1,900; 2017 depreciation prior to the sale of equipment was $430. |
| 15 | | Cheyenne sold for $5,200 on account inventory that cost $3,470. |
| 23 | | Salaries and wages of $6,380 were paid. |
Adjustment data:
| 1. | | Cheyenne estimates that uncollectible accounts receivable at year-end are $4,160. |
| 2. | | The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. |
| 3. | | The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2017. |
| 4. | | The building is being depreciated using the straight-line method over 30 years. The salvage value is $31,200. |
| 5. | | 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. |
| 6. | | The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,100. |
| 7. | | The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. |
| 8. | | Unpaid salaries at December 31, 2017, total $2,130. |
| 9. | | Both the short-term and long-term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months. |
| 10 | | Income tax expense was $13,900. It was unpaid at December 31.        
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Cheyenne Corp's unadjusted trial balance at December 1, 2017, is presented below. Debit Credit Cash $25,100 Accounts Receivable 36,200 Notes Receivable 9,200 Interest Receivable 0 Inventory 36,100 Prepaid Insurance 3,600 Land 20,200 156,000 Buildings Equipment 60,500 Patent 9,900 $600 Allowance for Doubtful Accounts Accumulated Depreciation-Buildings 52,000 Accumulated Depreciation-Equipment 24,200 27,200 Accounts Payable Salaries and Wages Payable 0 Notes Payable (due April 30, 2018) 12,600 Income Taxes Payable 0 Interest Payable Notes Payable (due in 2023) 35,000 Common Stock 51,500 Retained Earnings 55,200 Dividends 12,500 Dividends 12.500 Sales Revenue 912.000 Interest Revenue 0 Gain on Disposal of Plant Assets 0 Bad Debt Expense 0 Cost of Goods Sold 634,500 Depreciation Expense 0 Income Tax Expense 0 Insurance Expense 0 Interest Expense 0 Other Operating Expenses 62,000 Amortization Expense 0 Salaries and Wages Expense 104,500 Total $1,170,300 $1,170,300 The following transactions occurred during December. Dec. 2 Purchased equipment for $16,200, plus sales taxes of $1,800 (paid in cash). Cheyenne sold for $3,500 equipment which originally cost $5,300. Accumulated depreciation on this equipment at January 1, 2017, was $1,900; 2017 depreciation prior to the sale of equipment was $430. 15 Cheyenne sold for $5,200 on account inventory that cost $3,470. 23 Salaries and wages of $6,380 were paid. Adjustment data: 1. Cheyenne estimates that uncollectible accounts receivable at year-end are $4,160. 2. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. 3. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2017 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $31,200. 5. 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. 6. The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,100. 7. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2017, total $2,130. 9. Both the short-term and long-term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $13,900. It was unpaid at December 31. late Account Titles and Explanation Debit Credit ..2 Equipment 18000 Cash 18000 ..2 Depreciation Expense 430 Accumulated Depreciation Equipment 430 (To record depreciation expense on equipment.) Cash 3500 Accumulated Depreciation-Equipment 2330 Equipment 5300 Gain on Disposal of Plant Assets 530 (To record sale of equipment.) 15 Accounts Receivable 5200 Sales Revenue 5200 (To record sales revenue.) Cost of Goods Sold 3470 Inventory 3470 (To record cost of goods sold.) Prepaid Insurance 2400 4. Depreciation Expense 4160 Accumulated Depreciation-Buildings 4160 5. Depreciation Expense 9936 Accumulated Depreciation-Equipment 9936 6. Depreciation Expense 265 Accumulated Depreciation-Equipment 265 7. Amortization Expense 1100 Patents 1100 8. and Wages 2130 Salaries and Wages Payable 2130 9. Interest Expense 4760 Interest Payable 4760 10. Income Tax Expense 13900 Income Taxes Payable 13900 Prepare an adjuszed trial balance at December 31, 2017. CHEYENNE CORP Adjusted Trial Balance December 21, 2017 Debit Credit $ 1 Totals Cheyenne Corp's unadjusted trial balance at December 1, 2017, is presented below. Debit Credit Cash $25,100 Accounts Receivable 36,200 Notes Receivable 9,200 Interest Receivable 0 Inventory 36,100 Prepaid Insurance 3,600 Land 20,200 156,000 Buildings Equipment 60,500 Patent 9,900 $600 Allowance for Doubtful Accounts Accumulated Depreciation-Buildings 52,000 Accumulated Depreciation-Equipment 24,200 27,200 Accounts Payable Salaries and Wages Payable 0 Notes Payable (due April 30, 2018) 12,600 Income Taxes Payable 0 Interest Payable Notes Payable (due in 2023) 35,000 Common Stock 51,500 Retained Earnings 55,200 Dividends 12,500 Dividends 12.500 Sales Revenue 912.000 Interest Revenue 0 Gain on Disposal of Plant Assets 0 Bad Debt Expense 0 Cost of Goods Sold 634,500 Depreciation Expense 0 Income Tax Expense 0 Insurance Expense 0 Interest Expense 0 Other Operating Expenses 62,000 Amortization Expense 0 Salaries and Wages Expense 104,500 Total $1,170,300 $1,170,300 The following transactions occurred during December. Dec. 2 Purchased equipment for $16,200, plus sales taxes of $1,800 (paid in cash). Cheyenne sold for $3,500 equipment which originally cost $5,300. Accumulated depreciation on this equipment at January 1, 2017, was $1,900; 2017 depreciation prior to the sale of equipment was $430. 15 Cheyenne sold for $5,200 on account inventory that cost $3,470. 23 Salaries and wages of $6,380 were paid. Adjustment data: 1. Cheyenne estimates that uncollectible accounts receivable at year-end are $4,160. 2. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. 3. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2017 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $31,200. 5. 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. 6. The equipment purchased on December 2, 2017, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,100. 7. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2017, total $2,130. 9. Both the short-term and long-term notes payable are dated January 1, 2017, and carry a 10% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $13,900. It was unpaid at December 31. late Account Titles and Explanation Debit Credit ..2 Equipment 18000 Cash 18000 ..2 Depreciation Expense 430 Accumulated Depreciation Equipment 430 (To record depreciation expense on equipment.) Cash 3500 Accumulated Depreciation-Equipment 2330 Equipment 5300 Gain on Disposal of Plant Assets 530 (To record sale of equipment.) 15 Accounts Receivable 5200 Sales Revenue 5200 (To record sales revenue.) Cost of Goods Sold 3470 Inventory 3470 (To record cost of goods sold.) Prepaid Insurance 2400 4. Depreciation Expense 4160 Accumulated Depreciation-Buildings 4160 5. Depreciation Expense 9936 Accumulated Depreciation-Equipment 9936 6. Depreciation Expense 265 Accumulated Depreciation-Equipment 265 7. Amortization Expense 1100 Patents 1100 8. and Wages 2130 Salaries and Wages Payable 2130 9. Interest Expense 4760 Interest Payable 4760 10. Income Tax Expense 13900 Income Taxes Payable 13900 Prepare an adjuszed trial balance at December 31, 2017. CHEYENNE CORP Adjusted Trial Balance December 21, 2017 Debit Credit $ 1 Totals
