1. Prepare journal entrues for the transactions listed above and adjusting entries.
2. Prepare an income statement.
3. Prepare a retained earnings statement for the year ending December 31,2022.
4. Prepare a classified balance sheet as of December 31,2022.
Riverbed Corp's balance sheet at December 31, 2021, is presented below. RIVERBED CORP Balance Sheet December 31, 2021 Cash $48,640 Accounts receivable $46,740 Accounts payable 86,450 Common stock ($10 par) (2,850) Retained earnings 152,000 Allowance for doubtful accounts 242,060 Supplies 8,360 Land 76,000 Buildings 269,800 Accumulated depreciation-buildings (41.800) $442.700 $442,700 During 2022, the following transactions occurred. 1. On January 1, Riverbed issued 2.280 shares of $40 par, 7% preferred stock for $93,480. 2. On January 1, Riverbed also issued 1.710 shares of the $10 par value common stock for $39.900. 3. Riverbed performed services for $608,000 on account. 4. On April 1, 2022, Riverbed collected fees of $68,400 in advance for services to be performed from April 1, 2022, to March 31, 2023. 5. Riverbed collected $524,400 from customers on account. 3:07 PM During 2022, the following transactions occurred. 1. On January 1, Riverbed issued 2,280 shares of $40 par, 7% preferred stock for $93,480. 2. On January 1, Riverbed also issued 1,710 shares of the $10 par value common stock for $39.900. 3. Riverbed performed services for $608,000 on account. 4. On April 1, 2022, Riverbed collected fees of $68,400 in advance for services to be performed from April 1, 2022, to March 31, 2023. 5. Riverbed collected $524,400 from customers on account. 6. Riverbed bought $66,690 of supplies on account. 7. Riverbed paid $61,180 on accounts payable. 8. Riverbed reacquired 760 shares of its common stock on June 1 for $28 per share. 9. Paid other operating expenses of $357,580. 10. On December 31, 2022, Riverbed declared the annual preferred stock dividend and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2023. 11. An account receivable of $3,230 which originated in 2022 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $11,210 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $6,650 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $19.000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) Prepare journal entries for the transactions listed above and adjusting 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 tities and enter for the amounts. Rect Journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit Cash Preferred Stock Paid-in Capital in Excess of Par Value-Preferred Stock Cash Common Stock Pald-in Capital in Excess of Par Value-Common Stock Accounts Receivable Service Revenue Cash Unearned Service Revenue Cash Unearned Service Revenue Cash Accounts Receivable Supplies Accounts Payable Accounts Payable Cash Treasury Stock Cash Other Operating Expenses Cash Other Operating Expenses Cash 10. Cash Dividends Dividends Payable 11. Allowance for Doubtful Accounts Accounts Receivable Adjusting entries e Textbook and Media List of Accounts RIVERBED CORP Income Statement December 31, 2022 Service Revenue 659,300 Net Income /(Loss) Other Operating Expenses Bad Debt Expense Depreciation Expense Supplies Expense Total Operating Expenses Prepare a retained earnings statement for the year ending December 31, 2022. (List Items that increase retained earnings first.) RIVERBED CORP Statement of Retained Earnings For the Year Ending December 31, 2022 " Retained Earnings, 1/1/22 Add Y Retained Earnings, 12/31/22 RIVERBED CORP Balance Sheet Assets Liabilities and Stockholders' Equity 06
