ABC Corporation
Unadjusted Trial Balance
December 31, 2014
	Debit	Credit
Cash	$ 575,232
Short term investments	167,000
Fair value adjustment (Trading)	-
Accounts receivable	190,300
Allowance for doubtful accounts		$ -
Inventory	-
Purchases	350,000
Prepaid insurance	24,600
LT (Debt) investments (HTM)	177,824
Land	75,000
Building	150,000
Accumulated depreciation: building		4,000
Equipment	60,000
Accumulated depreciation: equipment		20,000
Patent	37,500
Accounts payable		75,240
Notes payable		235,000
Income taxes payable		63,800
Unearned rent revenue		36,000
Bonds Payable		800,000
Premium on Bonds Payable		61,771
Common stock		86,000
PIC In Excess of Par-Common Stock		13,000
Retained earnings		-
Treasury stock	49,000
Dividends	41,000
Sales Revenue		792,945
Advertising expense	8,400
Wages expense	67,600
Office expense	21,700
Depreciation expense	24,000
Utilities expense	31,000
Insurance expense	73,800
Income taxes expense	63,800
	$ 2,187,756	$ 2,187,756

ADJUSTMENTS NEEDED:

7	It would be unusual for a company to have an asset impairment in Year 1, but for the sake of this example, ABC realized
	that their intangible asset might be impaired on December 31, 2014. Record the impairment if any.
	The expected future net cash flows for this intangible asset totals $30,000, and the fair value of the asset is $27,500.
8	On 7/1/14, ABC purchased 7,000 shares of its own stock from existing stockholders as treasury stock. The cost of the treasury
	stock was $7 per share, or $49,000 in total. The effects of this transaction are already shown in the unadjusted trial balance. On 12/31/14,
	ABC reissued these 7,000 shares of treasury stock at $10 per share. Record the journal entry required for the reissuance of the treasury stock.
9	On 12/31/14, ABC issued 5,000 shares of $3 par value common stock at the closing market price of $7 per share. Prepare ABC's journal entry
	to reflect the issuance of the stock on 12/31/14.
										B