Carla Vista Company’s unadjusted trial balance at December 31, 2022, is presented below.

		Debit		Credit
Cash		$25,000
Accounts Receivable		36,500
Notes Receivable		8,900
Interest Receivable		0
Inventory		36,100
Prepaid Insurance		4,500
Land		20,100
Buildings		137,400
Equipment		61,600
Patents		9,200
Allowance for Doubtful Accounts				$500
Accumulated Depreciation—Buildings				45,800
Accumulated Depreciation—Equipment				24,640
Accounts Payable				27,500
Salaries and Wages Payable				0
Unearned Rent Revenue				2,100
Notes Payable (due April 30, 2023)				12,000
Interest Payable				0
Notes Payable (due in 2028)				36,000
Owner’s Capital				101,160
Owner’s Drawings		15,000
Sales Revenue				905,000
Interest Revenue				0
Rent Revenue				0
Gain on Disposal of Plant Assets				0
Bad Debts Expense		0
Cost of Goods Sold		631,000
Depreciation Expense		0
Insurance Expense		0
Interest Expense		0
Other Operating Expenses		61,400
Amortization Expense		0
Salaries and Wages Expense		108,000
Total		$1,154,700		$1,154,700

Unrecorded transactions:

1.		On May 1, 2022, Carla Vista purchased equipment for $17,700 plus sales taxes of $800 (all paid in cash).
2.		On July 1, 2022, Carla Vista sold for $3,600 equipment which originally cost $5,200. Accumulated depreciation on this equipment at January 1, 2022, was $2,000; 2022 depreciation prior to the sale of the equipment was $400.
3.		On December 31, 2022, Carla Vista sold on account $5,100 of inventory that cost $3,400.
4.		Carla Vista estimates that uncollectible accounts receivable at year-end are $4,000.
5.		The note receivable is a 1-year, 8% note dated April 1, 2022. No interest has been recorded.
6.		The balance in prepaid insurance represents payment of a $4,500 6-month premium on September 1, 2022.
7.		The building is being depreciated using the straight-line method over 30 years. The salvage value is $30,000.
8.		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.
9.		The equipment purchased on May 1, 2022, is being depreciated using the straight-line method over 5 years, with a salvage value of $2,000.
10.		The patent was acquired on January 1, 2022, and has a useful life of 10 years from that date.
11.		Unpaid salaries and wages at December 31, 2022, total $2,200.
12.		The unearned rent revenue of $2,100 was received on December 1, 2022, for 3 months’ rent.
13.		Both the short-term and long-term notes payable are dated January 1, 2022, and carry a 9% interest rate. All interest is payable in the next 12 months.

(a)

Prepare journal entries for the transactions listed above and adjusting entries.