Sunland corporation had the following transactions.

1. sold land (cost $11,400) for $14,400.
2. issued common stock at par for $20,000.
3. recorded depreciation on buildings for $16,400.
4. paid salaries of $8,400.
5. issued 1,300 shares of $1 par value common stock for equipment worth $10,400.
6. sold equipment (cost $9,400, accumulated depreciation $6,580) for $1,128.
(a) for each transaction above, prepare the journal entry.

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.