i need help journaling all the transactions and adjusting entries. The following transactions occurred during December.
Dec. 2: Purchased equipment for $14,700, plus sales taxes of $700 (paid in cash).
Dec. 2: Flounder sold for $3,600 equipment which originally cost $4,700. Accumulated depreciation on this equipment at January 1, 2022, was $1,600; 2022 depreciation prior to the sale of equipment was $775.
Dec. 15: Flounder sold for $4,600 on account inventory that cost $3,700.
Dec. 23: Salaries and wages of $6,200 were paid for December.
Adjustment data:
Flounder estimates that uncollectible accounts receivable at year-end are $4,100.
The note receivable is a 1-year, 8% note dated April 1, 2022. No interest has been recorded.
The balance in prepaid insurance represents payment of a $4,200, 6-month premium on September 1, 2022.
The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,000.
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, 2022, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,600.
The patent was acquired on January 1, 2022, and has a useful life of 9 years from that date.
Unpaid salaries at December 31, 2022, total $2,100.
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.
Income tax expense was $15,000. It was unpaid at December 31.
Flounder Corp.'s unadjusted trial balance at December 1, 2022, is presented below.
Debit
Credit
Cash Accounts Receivable
$22,300 33,100
Notes Receivable
10,300 0
Interest Receivable Inventory Prepaid Insurance Land
37,700 4,200 19,500 150,000 63,000 9,000
Buildings
Equipment
Patent Allowance for Doubtful Accounts
$600 50,000 25,200 26,900 0 11,400
Accumulated DepreciationBuildings
Accumulated Depreciation-Equipment
Accounts Payable
Salaries and Wages Payable
Notes Payable (due April 30, 2023)
Income Taxes Payable
0 0 38,200 48,000 65,200
Interest Payable
Notes Payable (due in 2028)
Common Stock
Retained Earnings Dividends Sales Revenue
10,900
977,000 0 0
Interest Revenue
Gain on Disposal of Plant Assets Bad Debt Expense Cost of Goods Sold
0 706,000 0 0 0 0 65,500 0 111,000 $1,242,500 $1,242,500
Depreciation Expense
Income Tax Expense
Insurance Expense
Interest Expense
Other Operating Expenses
Amortization Expense
Salaries and Wages Expense
