Accounting Cycle Review 15 a-e

Ivanhoe Corporations trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

		Debit		Credit
Cash		$27,700
Accounts Receivable		54,000
Inventory		23,100
Land		65,800
Buildings		86,900
Equipment		31,000
Allowance for Doubtful Accounts				$440
Accumulated DepreciationBuildings				27,000
Accumulated DepreciationEquipment				15,000
Accounts Payable				19,000
Interest Payable				0
Dividends Payable				0
Unearned Rent Revenue				8,000
Bonds Payable (10%)				50,000
Common Stock ($10 par)				32,000
Paid-in Capital in Excess of ParCommon Stock				6,400
Preferred Stock ($20 par)				0
Paid-in Capital in Excess of ParPreferred Stock				0
Retained Earnings				26,860
Treasury Stock		0
Cash Dividends		0
Sales Revenue				615,000
Rent Revenue				0
Bad Debt Expense		0
Interest Expense		0
Cost of Goods Sold		408,000
Depreciation Expense		0
Other Operating Expenses		39,300
Salaries and Wages Expense		63,900
Total		$799,700		$799,700

Unrecorded transactions and adjustments:

1.		On January 1, 2020, Ivanhoe issued 1,200 shares of $20 par, 6% preferred stock for $26,400.
2.		On January 1, 2020, Ivanhoe also issued 1,100 shares of common stock for $26,400.
3.		Ivanhoe reacquired 320 shares of its common stock on July 1, 2020, for $50 per share.
4.		On December 31, 2020, Ivanhoe declared the annual cash dividend on the preferred stock and a $1.30 per share dividend on the outstanding common stock, all payable on January 15, 2021.
5.		Ivanhoe estimates that uncollectible accounts receivable at year-end is $5,400.
6.		The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,900.
7.		The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $3,100.
8.		The unearned rent was collected on October 1, 2020. It was receipt of 4 months rent in advance (October 1, 2020 through January 31, 2021).
9.		The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded.

(Ignore income taxes.)

1. Prepare journal entries for the transactions and adjustment listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

2. Prepare an updated December 31, 2020, trial balance, reflecting the journal entries in part(a).

3. Prepare a multiple-step income statement for the year ending December 31, 2020. (List other revenues before other expenses.)

4. Prepare a retained earnings statement for the year ending December 31, 2020. (List items that increase retained earning first.)

5. Prepare a classified balance sheet as of December 31, 2020. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment. Enter account name only and do not provide descriptive information.)