Whispering Winds Corp's unadjusted trial balance at December 1, 2025, is presented below. 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, 2026) Income Taxes Payable Interest Payable Notes Payable (due in 2031) Common Stock Retained Earnings Dividends Sales Revenue Interest Revenue Gain on Disposal of Plant Assets Debit $36,960 61,824 16,800 0 60,816 6,048 33,600 252,000 100,800 15,120 20,160 Credit $840 84,000 40,320 45,864 0 18,480 0 0 58,800 84,000 106,848 1,512,000

7. The patent was acquired on January 1, 2025, and has a useful life of 9 years from that date. 8. Unpaid salaries at December 31, 2025, total $3,696. 9. Both the short-term and long-term notes payable are dated January 1, 2025, and carry a 10\% interest rate. All interest is payable in the next 12 months. 10 Income tax expense was $25,200, It was unpaid at December 31. (a) Prepare journal entries for the transactions listed above and adjusting entries, (List all debit entries before credit entries. Credit occount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Record journol entries in the order presented in the problem) Date No. Account Titles and Explanation Debit Cred (To record depreciation expense on equipment.) (To record sale of equipment.) Whispering Winds Corp's unadjusted trial balance at December 1,2025 , is presented below. Allowance for Doubtful Accounts Accumulated Depreciation-Buildings $840 Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Notes Payable (due April 30, 2026) 84,000 Income Taxes Payable Interest Payable Notes Payable (due in 2031) CommonStock 40,320 45,864 Retained Earnings 0 Dividends 20,160 Sales Revenue 18,480 0 0 58,800 84,000 106,848 Interest Revenue 1,512,000 Gain on Disposal of Plant Assets 0 (Torecord sales revenue) (To record cost of goods sold.) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Bad Debt Expense Cost of Goods Sold 1.058,400 Depreciation Expense o Income Tax Expense 0 Insurance Expense 0 Interest Experse 0 Other Operating Expenses 103,824 Amortization Expense 0 Salaries and Wages Expense Total $1,951,152184,800$$1,951,152 The following transactions occurred during December. Dec. 2 Purchased equipment for $26,880, plus sales taxes of $1,344 (paid in cash) 2 Sheffeld sold for $5,880 equipment which originally cost $8,400. Accumulated depreciation on this equipment at January 1.2025, was $3.024 : 2025 depreciatiori prior to the sale of equipment was $1,386. 15 Sheffeld sold for $8,400 on account inventory that cost $5,880. (Shetheld records sales under a perpetual inventory system.) 23 Salaries and wages of $11,088 were paid. Adjustment data: 1. Sheffield estimates that uncollectible accounts receivable at year-end are $6,720. 2. The note receivable is a one year, 8% note dated April 1, 2025. No interest has been recorded. 3. The balance in prepaid insurance represents payment of a \$6,048, 6-month premium on September 1.2025. 4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $50,400. 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, 2025, is being depreciated using the straight-line method over 5 years, with a salvage value of $3,024