2011 Unrecorded transactions: a. On January 1, 2011, Nordham issued 1,000 shares of $20 par, 6% preferred stock for $22,000. b. On January 1, 2011, Nordham also issued 1,000 shares of $10 par, common stock for $23,000. c. Nordham reacquired 300 shares of its common stock on July 1, 2011, for $49 per share. d. On September 30, 2011, Nordham wrote off as uncollectible the account of Elrich Corporation ($280). e. On December 13, 2011, Nordham purchased merchandises on account from Gong Co. $9,000, terms 2/10, n/30. f. On December 18, 2011, Nordham sold merchandises on account $12,000, terms 3/10, n/30. The cost of the merchandises sold was $8,000. g. On December 23, 2011, Nordham paid Gong Co. In full, less discount. h. On December 27, 2011,Nordham received collections in full, less discount from customers billed on December 18, 2011. i. On December 31, 2011, the payroll for the month of December consists of salaries and wages of $60,000. All salaries and wages are subject to 7.5% FICA taxes. A total of $8,900 federal income taxes are withheld. The salaries and wages are paid on January 1, 2012. j. Employer's December payroll taxes include 7.5% FICA taxes, a 5.4% SUTA and 0.8% FUTA taxes. k. On December 31, 2011, Nordham declared the annual preferred stock dividend and a $1.50 per share dividend on the outstanding common stock, all payable on January 15, 2012. l. Nordham estimates that uncollectible accounts receivable at year-end is $5,100. m. The building is being depreciated using straight-line method over 30 years. The salvage value is $5,000. n. The equipment is being depreciated using straight-line method over 10 years. The salvage value is $4,000. o. The unearned rent ($8,000) was collected on October 1, 2011. It was the receipt of 4 month's rent in advance (October 1, 2011 through January 31, 2012). p. The 10% bonds payable pay interest every January 1 and July 1. The interest for the 6 months ended December 31, 2011, has not been paid or recorded. Instructions 1. Record the above unrecorded transactions into the financial integrated framework shown in the excel file The beginning balances have already been entered. 2. Complete the multiple-step income statement, and the classified balance sheet for the year, ending December 31, 2011. beginning balances cash is 23000 + acct rec 51000 - allow for dbt acc - (-450) + merch inv 32700 + equip 40000 - Acc dpr equip (-14,400) + building 95000 - acc dpr building (-30000) + Land 65000 = Accts pay 19300 +int pay 0+ Div pay 0 + unearned revenue 8,000 + wages pay 0 + FICA tax pay 0 + Empl FIT Pay 0 + Suta Tax pay 0 + Futa Tax Pay 0 + Bonds Pay 50,000 + Common Stock 30,000 + Pref Stock 0 + Paid in C in exc. 6,000 + Reatained earnings 148550 - Treas Stock 0

Income Statement

570,000

Interest Expense

-2,500

Cost of Merch. Sold

-390,000

Other Operating Expense

-39,000

Salaries and Wages Expense

-65,000