Chapter 9 HW Assignment Question 4 of 7 < > View Policies Current Attempt in Progress...

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Chapter 9 HW Assignment Question 4 of 7 < > View Policies Current Attempt in Progress Novak Corp.'s unadjusted trial balance at December 1, 2025, is presented below. Debit Credit Cash $31,680 Accounts Receivable 52,992 Notes Receivable 14,400 Interest Receivable 0 Inventory 52,128 Prepaid Insurance 5,184 Land 28,800 Buildings 216,000 Equipment 86,400 Patent 12,960 Allowance for Doubtful Accounts $720 Accumulated Depreciation-Buildings 72,000 Accumulated Depreciation-Equipment Accounts Payable 34,560 39,312 Salaries and Wages Payable 0 Notes Payable (due April 30, 2026) 15,840 Income Taxes Payable 0 Interest Payable 0 Notes Payable (due in 2031) 50,400 Common Stock Retained Earnings 72,000 91,584 Dividends 17,280 Sales Revenue 1,296,000 Interest Revenue Gain on Disposal of Plant Assets 0 0 Bad Debt Expense Cost of Goods Sold 0 907,200 Depreciation Expense Income Tax Expense 0 0 Insurance Expense 0 Interest Expense 0 Other Operating Expenses 88,992 Amortization Expense 0 Salaries and Wages Expense 158,400 Total $1,672,416 $1,672,416 The following transactions occurred during December. Dec. 2 Purchased equipment for $23,040, plus sales taxes of $1,152 (paid in cash). 2 15 23 -/4 == Novak sold for $5,040 equipment which originally cost $7,200. Accumulated depreciation on this equipment at January 1, 2025, was $2,592; 2025 depreciation prior to the sale of equipment was $1,188. Novak sold for $7,200 on account inventory that cost $5,040. (Novak records sales under a perpetual inventory system.) Salaries and wages of $9,504 were paid. Adjustment data: 1. Novak estimates that uncollectible accounts receivable at year-end are $5,760. 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 $5,184, 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 $43,200. 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 $2,592. 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 $3,168. 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 $21,600. 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 account 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 O for the amounts. Record journal entries in the order presented in the problem.) Date No. Account Titles and Explanation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. (To record depreciation expense on equipment.) (To record sale of equipment.) (To record sales revenue.) (To record cost of goods sold.) eTextbook and Media List of Accounts Save for Later Using multiple attempts will impact your score. 5% score reduction after attempt 1 Debit Credi Attempts: 0 of 2 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c1) The parts of this question must be completed in order. This part will be available when you complete the part above. (c2) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above. = SUPPORT Chapter 9 HW Assignment Question 4 of 7 < > View Policies Current Attempt in Progress Novak Corp.'s unadjusted trial balance at December 1, 2025, is presented below. Debit Credit Cash $31,680 Accounts Receivable 52,992 Notes Receivable 14,400 Interest Receivable 0 Inventory 52,128 Prepaid Insurance 5,184 Land 28,800 Buildings 216,000 Equipment 86,400 Patent 12,960 Allowance for Doubtful Accounts $720 Accumulated Depreciation-Buildings 72,000 Accumulated Depreciation-Equipment Accounts Payable 34,560 39,312 Salaries and Wages Payable 0 Notes Payable (due April 30, 2026) 15,840 Income Taxes Payable 0 Interest Payable 0 Notes Payable (due in 2031) 50,400 Common Stock Retained Earnings 72,000 91,584 Dividends 17,280 Sales Revenue 1,296,000 Interest Revenue Gain on Disposal of Plant Assets 0 0 Bad Debt Expense Cost of Goods Sold 0 907,200 Depreciation Expense Income Tax Expense 0 0 Insurance Expense 0 Interest Expense 0 Other Operating Expenses 88,992 Amortization Expense 0 Salaries and Wages Expense 158,400 Total $1,672,416 $1,672,416 The following transactions occurred during December. Dec. 2 Purchased equipment for $23,040, plus sales taxes of $1,152 (paid in cash). 2 15 23 -/4 == Novak sold for $5,040 equipment which originally cost $7,200. Accumulated depreciation on this equipment at January 1, 2025, was $2,592; 2025 depreciation prior to the sale of equipment was $1,188. Novak sold for $7,200 on account inventory that cost $5,040. (Novak records sales under a perpetual inventory system.) Salaries and wages of $9,504 were paid. Adjustment data: 1. Novak estimates that uncollectible accounts receivable at year-end are $5,760. 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 $5,184, 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 $43,200. 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 $2,592. 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 $3,168. 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 $21,600. 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 account 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 O for the amounts. Record journal entries in the order presented in the problem.) Date No. Account Titles and Explanation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. (To record depreciation expense on equipment.) (To record sale of equipment.) (To record sales revenue.) (To record cost of goods sold.) eTextbook and Media List of Accounts Save for Later Using multiple attempts will impact your score. 5% score reduction after attempt 1 Debit Credi Attempts: 0 of 2 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c1) The parts of this question must be completed in order. This part will be available when you complete the part above. (c2) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above. = SUPPORT