On January $1,2024,$ the general ledger of Parts Unlimited includes the following account balances:

Accounts TitleDebitCreditCash$ $175,400$Accounts Receivable$25,400$Inventory$50,800$Land$353,000$Equipment$376,500$Accumulated depreciation$$$ $185,000$Accounts Payable$27,800$Common stock$533,000$Retained Earnings$235,300$Totals$ $981,100$$ $981,100$

From January $1$ to December $31,$ the following summary transactions occurred:

Purchased inventory on account, $$338,800.$

Sold inventory on account, $$617,200.$ The inventory cost $$355,600.$

Received cash from customers on account, $$571,700.$

Paid cash on account, $$341,500.$

Paid cash for salaries, $$107,700,$ and for utilities, $$65,700.$

In addition, Parts Unlimited had the following transactions during the year:

April $1$Purchased equipment for $$108,000$ using a note payable, due in $12$ months plus $6\%$ interest. The company also paid cash of $$4,500$ for freight and $$5,100$ for installation and testing of the equipment. The equipment has an estimated residual value of $$12,000$ and a $10-$year service life.June $30$Purchased a patent for $$53,000$ from a third$-$party marketing company related to the packaging of the company$$s products. The patent has a $20-$year useful life, after which it is expected to have no value.October $1$Sold equipment for $$44,500.$ The equipment cost $$73,700$ and had accumulated depreciation of $$50,400$ at the beginning of the year. Additional depreciation for $2024$ up to the point of the sale is $$9,800.($Hint: Total accumulated depreciation equals the amount at the beginning of the year plus the amount recorded for the current year.$)$November $15$Several older pieces of equipment were improved by replacing major components at a cost of $$67,100.$ These improvements are expected to enhance the equipment$$s operating capabilities. $[$Record this transaction using Alternative $2$capitalization of new cost.$]$

Year$-$end adjusting entries:

Depreciation on the equipment purchased on April $1,2024,$ calculated using the straight$-$line method.

Depreciation on the remaining equipment, $$34,500.$

Amortization of the patent purchased on June $30,2021,$ using the straight$-$line method.

Accrued interest payable on the note payable.

Equipment with an original cost of $$79,700$ had the following related information at the end of the year: accumulated depreciation of $$53,300,$ expected cash flows of $$17,000,$ and a fair value of $$17,300.$

Accrued income taxes at the end of the year are $$25,600.$

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Question $1-$ Unit $8$ AS: Exercise

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No Date General Journal Debit Credit $1$ January $01$ Cash $*338,000*338,000*2$ January $01$ Inventory $*617,200*3$ January $01355,600*4$ January $01$ Accounts payable $*571,700$ Cash $*571,700*5$ January $01$ Cash $*341,500*341,500$ o$.6$ January $01$ Salaries payable $*107,700*$ Utilities expense $*65,700*8$ June $30$ Patent $53,000$ xx $9$ October $01$ Depreciation expense $*9,800$ xx $10$ October $01$ Gain on sale of equipment $*44,500$ xx Equipment $*73,700*$ Accumulated depreciation $*50,400$ xx $11$ November $15$ Cost of goods sold $*67,100$ xx $13$ December $31$ Accumulated depreciation $*34,500$ xx $16$ December $3179,700*53,300$ xx $17,000*17,300$ xx $17$ December $3125,600$ xx Income taxes payable $*18$ December $310**19$ December $310**$ Salaries expense $0$ Utilities expense $0$ Income tax expense O

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