1. Record the transactions in general journal form -SKIP LINES BETWEEN EACH TRANSACTION 2. Post the transactions to the T-accounts 3. Prepare a trial balance 4. Prepare an a. income statement b. statement of retained earnings c. balance sheet 5. Close the temporary accounts to retained earnings 6. Post the closing entries to the T-accounts and prepare a post-closing trial balance JDT, Inc. authorized 20,000 shares of $5 par value common stock and authorized 2,000 shares of 5% cumulative, $50 par value, preferred stock. The trial balance of JDT, Inc as of January 1, 2017, is as follows Cash Accounts receivable Allowance for doubtful accounts Supplies Inventory (45 $275) Land Equipment Accumulated depreciation Equipment Building Accumulated depreciation Building Accounts payable Salaries payable Mortgage payable - Building Common Stock Retained Earnings 130,000 40,000 4,500 350 12,375 17,500 12,000 7,680 115,000 10,500 30,000 3,700 66,442 48,000 156,403 327,225327,225 Transactions for 2017: 1. Jan 1s*- purchased new equipment for $65,000. T 2. Jan 15th - issued 1,200 additional shares of the $5 par value common stock for $8 p 3. Jan 31st-paid the salaries payable from 2015 he corporation paid cash. The machine has an estimated life of 7 years and a salvage value of $8,000. The total estimated units expected to be produced is 114,000 share and 800 shares of $50 par value, 5% cumulative preferred stock for $54 per share Feb 1st- after several attempts to collect from customers, wrote off $2,250 of 4. uncollectible accounts receivable 5. Feb 15th- purchased 200 units of inventory at a cost of $280, payin g cash for the purchase. sold 225 units for $400 each. All sales were on account. (Use FIFo to compute Cost of Goods Sold.) 7. Mar 1st- JDT Corporation declared a 522,000 cash dividend to be paid March 31 to shareholders of record on March 1 8. Mar 31st-paid dividend declared on March 1. 9. Apr 1*- paid $12,000 for one year's office rent in advance 10. May 1-purchased $425 of supplies on account. (Record to general Accounts Payable account) 11. June 1t-sold $99,000 of services for the year. Received $33,000 cash payments with the remaining $66,000 as sales on account. 12. July 1st- collected $177,000 of accounts receivable during the year 13. Aug 1st-paid salaries of $54,000 14. Sept 1st-borrowed $40,000 from the bank. Note had a 7% annual rate of interest and matured on 8/31/2018. Interest and principal are to be paid in cash on the maturity date 15. Oct 1st-declared a dividend on the preferred stock and $1 per share dividend on the common stock to be paid to shareholders of record on October 1, payable on November 1, 2017 16. Nov 1st-paid the dividends that had been declared October 1. 17. Dec 1t-paid operating expenses of $46,000 for the year 18. Dec 15thpaid the balance of the accounts payable. 19. Dec 31-paid the annual installment of $18,000 on the amortized mortgage payable for the building. The interest rate for the mortgage payable is 6%. ($18,000 is the total PRINCIPAL PAYMENT) 20. Dec 31t-sold the land for $22,000 cash. Adjustments 21. There was $210 of supplies on hand at the end of the year 22. Recognized expired rent for the office for the year. 23. Recognized the bad debt expense for the year using the allowance method. JDT 24. Recognized depreciation expense on the equipment, building, and new machine The company uses double-declining balance for the equipment Corporation estimates that 1% of current year total sales and services on account will a. The equipment purchased on January 1, 2015 for $12,000, has a 5-year useful b. The building was purchased on January 1, 2013 for $115,000, has a 40-year not be collected life and a $2,000 residual value. The total prior years' depreciation is $7,680. useful life and a $10,000 residual value. The total prior years' depreciation is $10,500. The company uses straight-line for the building The units produced for 2017 with the new equipment is 18,000. The company c. uses unit of production method for depreciation on the equipment. 25. Record the accrued interest on the note payable for the bank loan at December 31 2017