J- on , 2018 (enter your birthday month), accounting creations recorded a patent in the amount of $150,000. the company paid outside legal fees of $80,000 to have the patent registered. the other $70,000 represents internal costs in developing the patent. the patent is good for 20 years, but the company estimates that the patent will have a useful life of 6 years with no residual value. amortization is straight line. the company depreciates using partial years for intangible assets. no amortization has been recorded for 2018.k - as of 12/31/2018 the available for sale securities have a fair value of $290,615 due to the market conditions, the company does not plan on selling the assets in 2019, but their intent is to sell at some point in time. you can ignore the tax effect on unrealized gains and losses. l -the office building was bought in january 1, 2016 and accounting creations plans to use the building for 40 years and believes it will have a salvage value of $250,000 at the end of 40 years. accounting creations depreciates the building on a straight-line basis. due to the location of the building and use potential, accounting creations is concerned about impairment. at 12/31/2018 it is determined that the future cash flows for the building are $3,000,000. the fair value of the building is $3,400,000 at 12/31/2018.accounting creations was authorized to issue 3,000,000 shares of $1 par common stock but has only issued 650,000 shares of common stock as of 12/31/2018. no new shares were issued during 2018.1. on the "adjusting journal entries" worksheet, prepare in journal entry form all adjusting and correcting journal entries based on the following information. all information was provided to you as of 12/31/2018. (round all numbers to the nearest dollar). label journal entries a through t. accounting creations incorporatedend of period worksheetfor the year ended december 31, 2018unadjusted adjustedaccount title trial balance adjustments trial balancedr cr dr cr dr crcash 330,000 - accounts receivable 694,980 - allowance for doubtful accounts - 17,000 interest receivable - - merchandise inventory 425,000 - prepaid insurance - - lifo reserve - 32,000 prepaid advertising - - prepaid rent 17,000 - office supplies 6,000 - note receivable 25,000 available for sale securities 375,000 - office building 3,750,000 - accumulated depreciation - office building - 87,500 storage building 1,275,000 - accumulated depreciation - storage building - - land 750,000 - leasehold improvements 225,000 - accumulated depreciation - leasehold improvements - - office equipment 325,000 - accumulated depreciation - office equipment - 65,000 patent 150,000 - accounts payable - 345,000 sales tax payable - - salaries payable - 142,000 payroll taxes payable - 25,000 interest payable - - income tax payable - - unearned rent revenue - - loan payable - onstar bank - 650,000 loan payable - coldstar bank - 2,000,000 common stock - 650,000 additional paid in capital - 1,998,750 retained earnings - 920,000 accumulated other comprehensive income - 25,000 dividends 84,750 - sales - 4,528,200 sales returns and allowances 42,250 - sales discounts 19,250 - cost of goods sold 1,979,500 - sales salaries expense 436,400 - office salaries expense 274,000 - advertising expense 16,000 - depreciation expense - office building - depreciation expense - leasehold improvements - - depreciation expense - office equipment - - leasing expense - stores 132,000 - miscellaneous selling expense 23,000 - research & development expense 15,000 rent expense - storage facility - - insurance expense 15,000 - office supplies expense 35,000 - miscellaneous administrative expense 9,170 - rent revenue - 75,000 interest revenue on note receivable - - dividend revenue on afs securities - 25,000 interest expense - - bad debt expense 35,000 - amortization expense - - income tax expense - - payroll taxes expense 121,150 - 11,585,450 11,585,450