Whispering Winds Corp.s unadjusted trial balance at December 1, 2017, is presented below.

	Debit		Credit
Cash	$25,600
Accounts Receivable	36,200
Notes Receivable	8,900
Interest Receivable	0
Inventory	36,030
Prepaid Insurance	3,900
Land	21,000
Buildings	136,500
Equipment	61,500
Patent	9,000
Allowance for Doubtful Accounts			$450
Accumulated DepreciationBuildings			45,500
Accumulated DepreciationEquipment			24,600
Accounts Payable			27,300
Salaries and Wages Payable			0
Notes Payable (due April 30, 2018)			12,600
Income Taxes Payable			0
Interest Payable			0
Notes Payable (due in 2023)			35,600
Common Stock			51,400
Retained Earnings			17,180
Dividends	13,000
Sales Revenue			942,000
Interest Revenue			0
Gain on Disposal of Plant Assets			0
Bad Debt Expense	0
Cost of Goods Sold	636,500
Depreciation Expense	0
Income Tax Expense	0
Insurance Expense	0
Interest Expense	0
Other Operating Expenses	61,000
Amortization Expense	0
Salaries and Wages Expense	107,500
Total	$1,156,630		$1,156,630

The following transactions occurred during December.

Dec. 2		Purchased equipment for $18,000, plus sales taxes of $600 (paid in cash).
2		Sheffield sold for $3,550 equipment which originally cost $5,100. Accumulated depreciation on this equipment at January 1, 2017, was $1,900; 2017 depreciation prior to the sale of equipment was $430.
15		Sheffield sold for $5,500 on account inventory that cost $3,450.
23		Salaries and wages of $6,730 were paid.

Adjustment data:

1.		Sheffield estimates that uncollectible accounts receivable at year-end are $4,030.
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 $32,700.
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 $2,280.
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 $2,120.
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 $12,100. It was unpaid at December 31.

Part 2:

Prepare a 2017 income statement.