Unadjusted trial balance at December 1, 2012- debits: cash 22,000 accounts receivable 36,800 notes receivable 10,000 interest receivable 0 inventory 36,200 prepaid insurance 3,600 land 20,000 buildings 150,000 equipment 60,000 patent 9,000 dividends 12,000 bad debts expense 0 cost of goods sold 630,000 depreciation expense 0 insurance expense 0 interest expense 0 other operating expenses 61,800 amortization expense 0 salaries and wages expense 110,000 credits: allowance for doubtful accounts 500 accumulated depreciation- buildings 50,000 accumulated depreciation- equipment 24,000 accounts payable 27,300 salaries and wages payable 0 notes payable (due April 30, 2013) 11,000 interest payable 0 notes payable (due in 2018) 35,000 common stock 50,000 retained earnings 63,600 sales revenue 900,000 interest revenue 0 gain on disposal of plant assets 0 the following transactions occurred during December. Dec. 2 Paulson purchased equipment for $16,000 plus sales taxes of $800 (all paid in cash) Dec. 2 Paulson sold for $3,500 equipment which originally cost $5,000. Accumulated depreciation on this equipment at January 1, 2010; was $1,800; 2012 depreciation prior to the sale of equipment was $450. Dec. 15 Paulson sold for $5,000 on account inventory that cost $3,500 Dec. 23 Salaries and wages of $6,600 were paid. Adjustment Data: 1. Paulson estimates that uncollectible accounts receivable at year-end are $4,000. 2. the note receivable is a one-year, 8% note dated April 1, 2012. No interest has been recorded. 3. the balance in prepaid insurance represents payment of a $3,600, 6 month premium on September 1, 2012. 4. the building is being depreciated using the straight-line method over 30 years. the salvage value is $30,000. 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, 2012 is being depreciated using the straight-line method over 5 years, with a salvage value of $1,800. 7. the patent was acquired on January 1, 2012, and has a useful life of 9 years from that date. 8. unpaid salaries at December 31, 2012, total $2,200 9. both the short-term and long-term notes payable are dated January 1, 2012, and carry a 10% interest rate. all interest is payable in the next 12 months. 10. income tax expense was %15,000. it was unpaid at December 31. Instructions: a. prepare journal entries for the transactions listed above and adjusting entries. b. prepare an adjusted trial balance at December 31, 2012