ACC 122 Summer 2021 Comprehensive Project Jolly Corporation's Trial Balance at December 31, 202X is presented below. All 202X transactions have been recorded except for the items described on the Debit Credit $ 2,540 63,306 16,048 32,578 0 54,300 0 o 0 Cash $ 220,650 Accounts Receivable 36,362 Inventory 54,254 Debt Investments 0 Land 60,000 Buildings 215,850 Equipment 75,120 Allowance for Doubtful Accounts Accumulated Depreciation Buildings Accumulated Depreciation Equipment Accounts Payable Interest Payable Unearned Rent Revenue Dividends Payable Income Tax Payable Bonds Payable Discount on Bonds Payable 0 Common Stock {$2 par) Paid in Capital in Excess of Par-Common Stock Preferred Stock ($60 par) Paid in Capital in Excess of Par-Preferred Stock Retained Earnings Treasury Stock 0 Cash Dividends 0 Sales Revenue Rent Revenue Gain on Sale of Land Bad Debt Expense 0 Interest Expense 0 Cost of Goods Sold 478,592 Depreciation Expense 0 Other Operating Expenses 62,374 Salaries and Wages Expense 85,656 Income Tax Expense 0 Total $ 1,288,858 29,200 44,580 0 0 90,051 956,255 0 0 mi $ 1,288,858 Unrecorded transactions: Round all calculations if necessary to -6- decimals (to the nearest dollar, do not show cents). 1. On January 1, 202x, Jolly Corp. issued 520 shares of $60 par, 5% preferred stock for $75,810. 2. On January 1, 20XX, Jolly Corp. also issued 5,800 shares of common stock for $42,050. 3. On January 1, 20XX, Jolly Corp. issued $325,000,5.5%, 9 year bonds when the market rate was 6%. Interest is to be paid annually on each January 1, beginning 1 year from date of issue. 4. Jolly Corp. reaquired 3,600 shares of its common stock on January 12, 20XX for $8.00 per share. 5. On December 31, 20XX, Jolly Corp. declared the annual preferred dividend plus a $2.75 per share dividend on the outstanding common stock, all payable in cash on January 31 of next year. 6. On December 31, 20XX, Jolly Corp. estimates that the total amount of accounts receivable that is uncollectible at year end is $1,740. 7. The building is being depreciated using the straight line method over 25 years. The salvage value is $100,000. 8. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $15,000. 9. Sold the Land for $65,000 cash. 10. Bought Debt Investments worth $170,000 for cash. 11. The unearned rent was collected on December 1, 20XX. It was receipt of 3 months' rent in advance (December 1, 20XX through February 28 of next year). 12. The first cash interest payment on the 5.5% bonds is due January 1 of next year. The annual interest on the bonds for 20XX has not yet been recorded. Use the effective interest method. 13. The Jolly Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 37%. The taxes will not be paid until March of next year. Instructions: {a) Prepare journal entries for the transactions listed above. {b) Prepare an updated December 31, 20XX trial balance. (c) Prepare a multiple-step income statement for the year ending December 31, 20XX. (d) Prepare a retained earning statement for the year ending December 31, 20XX