Whispering Winds Corp's unadjusted trial balance at December 1, 2017, is presented below. Credit Debit $25,600 36,200 8,900 0 36,030 3.900 21,000 136,500 61,500 9,000 Cash Accounts Receivable Notes Receivable Interest Receivable Inventory Prepaid Insurance Land Buildings Equipment Patent Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Accounts Payable Salaries and Wages Payable Notes Payable (due April 30, 2018) Income Taxes Payable Interest Payable Notes Payable (due in 2023) Common Stock Retained Earnings Dividends $450 45,500 24,600 27,300 0 12,600 0 0 35,600 51,400 17,180 13,000 942,000 0 0 0 636,500 0 Sales Revenue Interest Revenue Gain on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Other Operating Expenses Amortization Expense Salaries and Wages Expense Total 0 0 0 61,000 0 107,500 $1.156,630 $1.156.630 The following transactions occurred during December Purchased equipment for $18,000, plus sales taxes of $600 (paid in cash). Dec. 2 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. Sheffield sold for $5.500 on account inventory that cost $3,450. Salaries and wages of $6730 were paid 15 23 Adjustment data: Adjustment data: 1 2. 3. 4. 5. 6 Sheffield estimates that uncollectible accounts receivable at year-end are $4.030, 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 The building is being depreciated using the straight-line method over 30 years. The salvage value is $32,700. 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. The equipment purchased on December 2, 2017, is being deprecated 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. 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 interestis payable in the next 12 months 10 Income tax experve was $12.100. It was unpaid at December 31 8. Prepare a 2017 income statement. WHISPERING WINDS CORP. Income Statement For the Year Ended December 31, 2017 $ Sales Revenues 947500 Cost of Goods Sold 639950 Gross Profit 307550 Operating Expenses Salaries and Wages Expense $ 107500 Other Operating Expenses 61000 Depreciation Expense Bad Debt Expense Insurance Expense Amortization Expense Total Operating Expenses Income From Operations Other Reveries and Gains Total Operating Expenses Income From Operations Other Revenues and Gains Gain on Disposal of Plant Assets Interest Revenue Other Expenses and Losses Interest Expense Income Before Income Taxes Income Tax Experise 12100 Net Income/(Loss) $ e Textbook and Media List of Accounts Q Search Default 2 3 4 5 6 7 8 9 0 W E R I Y U