View Policies Current Attempt in Progress Flint Corporation's unadjusted trial balance at December 1, 2022, is presented below. Debit Credit Cash $22.900 Accounts Receivable 34.400 Notes Receivable 9.000 Interest Receivable 0 Inventory 37500 Prepaid Insurance 4.200 Land 18,900 Buildings 150.000 Equipment 66,000 Patent 9.000 Allowance for Doubtful Accounts $400 Accumulated Depreciation-Buildings 50,000 Accumulated Depreciation-Equipment 26,400 Accounts Payable 25,200 Salaries and Wages Payable 0 Notes Payable (due April 30, 2023) 11.000 Income Taxes Payable 0 Interest Payable O Notes Payable (due in 2028) 33,900 Common Stock 50,000 Retained Earnings 45,500 Dividends 12,300 Sales Revenue 864.000 Interest Revenue 0 Gainon Disposal of Plant Assets 0 Bad Debt Expense Cost of Goods Sold 574,000 Depreciation Expense 0 Income Tax Expense 0 Insurance Expense 0 Interest Expense Other Operating Expenses 64,200 Amortization Expense 0 Salaries and Wages Expense 104,000 Total $1,106,400 $1.106.400 0 The following transactions occurred during December Dec.2 Purchased equipment for $16,400, plus sales taxes of $900 (paid in cash). 2 Flint sold for $3,500 equipment which originally cost $5,000. Accumulated depreciation on this equipment at January 1, 2022, was $1.900; 2022 depreciation prior to the sale of equipment was $875. Flint sold for $5.500 on account inventory that cost $3,700. 23 Salaries and wages of $6,400 were paid for December 15 Adjustment data: Flint estimates that uncollectible accounts receivable at year-end are $4,100 2 The note receivable is a 1-year, 8% note dated April 1, 2022. No interest has been recorded. 3. The balance in prepaid insurance represents payment of a $4,200,6-month premium on September 1, 2022. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $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, 2022, is being depreciated using the straight-line method over 5 years with a salvage value of $1,700 7 The patent was acquired on January 1, 2022, and has a useful life of 9 years from that date. B. Unpaid salaries at December 31, 2022, total $2,200. 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 $15,000. It was unpaid at December 31 Flint Corporation Journal entries Date Account 2-Dec Equipment Cash Credit Debit $ 17,300 Calculation =16400+900 $ 17,300 $ $ 875 2-Dec Depreciation Expense Accumulated Depreciation--Equipment $ 875 19004875 2-Dec Cash $ 3,500 Accumulated Depreciation-Equipment $ 2,775 Equipment Gain on Disposal of Plant Assets $ $ 5,000 1,275 $ 5,500 15-Dec Accounts Receivable Sales Revenue $ 5,500 $ 3,700 15-Dec cost of Goods Sold Inventory $ 3,700 23-Dec Salaries and Wages Expense Cash $ 6,400 $ 6,400 Adjusting entries 31-Dec Bad Debt Expense Allowance for Doubtful Accounts $2.00 4100-400 $ 3.700 $ 9000 9/12 31-Dec Interest Receivable Interest Revenue $ 540 $2.500 31-Dec Insurance Expense Prepaid Insurance 4200/64 months $ 2.800 Sep 1to Decals for months (150000 300001/30 years $ 4.000 $ 4.000 31-Dec Depreciation Expense Accumulated Depreciation-Buildings $ 20.500 31-Dec Depreciation Expense Accumulated Depreciation-Equipment 66000-5000)-(1066000-5000||1/5 years $30.980 Exclude equipment sold on Dec 2 of 5000 (17300 17001/5 years *1/12 $ 260 $ 31-Dec Depreciation Expense Accumulated Depreciation-Equipment $1,000 5000/5 years 31-Dec Amortization Expense Patent $ 1.000 $ 2.200 31-Dec Salaries and Wages Expense Salaries and Wages Payable $ 2.200 $ 4,490 1100033300) 10% 31-Dec Interest Expense Interest Payable 54.490 $ 15.000 31-Dec Income Tax Expense Income Taxes Payable $ 35.000 FLINT CORPORATION Adjusted Trial Balance Debit Credit Torah