View Policies Show Attempt History Current Attempt in Progress Swifty Corporation's unadjusted trial balance at December 1, 2017, is presented below. Debit Credit Cash $26,100 Accounts Receivable 37,000 Notes Receivable 8,600 Interest Receivable 0 Inventory 36,070 Prepaid Insurance 3,900 Land 20,500 Buildings 163,200 Equipment 60,500 Patent 10,620 Allowance for Doubtful Accounts $500 $ Accumulated Depreciation-Buildings 54,400 Accumulated Depreciation-Equipment 24,200 Accounts Payable 27,000 Salaries and Wages Payable 0 Notes Payable (due April 30, 2018) 12,700 Income Taxes Payable 0 Interest Payable 0 Notes Payable (due in 2023) 35.900 Common Stock 54,600 Retained Earnings 53,690 Dividends 13,000 Sales Revenue 927,500 Sales Revenue 927.500 Interest Revenue 0 Gain on Disposal of Plant Assets 0 Bad Debt Expense 0 Cost of Goods Sold 640,000 Depreciation Expense 0 Income Tax Expense 0 Insurance Expense 0 0 Interest Expense Other Operating Expenses 62,000 Amortization Expense 0 Salaries and Wages Expense 109,000 Total $1,190,490 $1.190.490 The following transactions occurred during December Dec. 2 Purchased equipment for $17,400, plus sales taxes of $1,800 (paid in cash). 2 Swifty sold for $3,500 equipment which originally cost $5,100. Accumulated depreciation on this equipment at January 1, 2017, was $1,800: 2017 depreciation prior to the sale of equipment was $400. 15 Swifty sold for $5,400 on account inventory that cost $3,350. 23 Salaries and wages of $6,430 were paid. Adjustment data: 1 Swifty estimates that uncollectible accounts receivable at year-end are $4,000. 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 $3,900, 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 $30,300. 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. Question 1 of 1 39.41 / 50 E Salaries and Wages Expense 109,000 Total $1,190,490 $ 1.190,490 The following transactions occurred during December. Dec. 2 Purchased equipment for $17,400, plus sales taxes of $1,800 (paid in cash). 2 Swifty sold for $3,500 equipment which originally cost $5,100. Accumulated depreciation on this equipment at January 1, 2017, was $1,800; 2017 depreciation prior to the sale of equipment was $400. 15 Swifty sold for $5,400 on account inventory that cost $3,350 23 Salaries and wages of $6,430 were paid. Adjustment data: 1 Swifty estimates that uncollectible accounts receivable at year-end are $4,000. 2. The note receivable is a one-year, 8% note dated April 1, 2017. No interest has been recorded. The balance in prepaid insurance represents payment of a $3,900, 6-month premium on September 1, 2017 3. 4. 5. The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,300. 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 $1,920, 7. The patent was acquired on January 1, 2017, and has a useful life of 9 years from that date. Unpaid salaries at December 31, 2017, total $2,040. 8. 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 $13,300. It was unpaid at December 31. Part 1 Question 1 of 1 39.41 / 50 Prepare a December 31, 2017, balance sheet. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.) SWIFTY CORPORATION Balance Sheet V Assets Question 1 of 1 39.41 / 50 E Liabilities and Stockholders' Equity $ Question 1 of 1 39.41 / 50 $ e Textbook and Media List of Accounts Save for Later Attempts: 0 of 4 used Submit