Attached is the pdf with all of my questions. Can you help me with the following questions on the financial statement.

Financial Statement Homework #3 Name___________________ Please circle section time: 8:00, 9:30, 2:00 YOU MUST STAPLE YOUR PAGES TOGETHER! Part 1: At November 30, 2016, Rocky Mountain Company had the following trial balance. There is detailed information on the next page about December 2016 transactions that need to be recorded. Rocky Mountain Company Trial Balance 11/30/16 Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Supplies Inventory Equipment Building Accumulated Depreciation Copyright Accounts Payable Dividends Payable Interest Payable Unearned Revenue ST Note Payable LT Mortgage Payable Bonds Payable Premium on Bonds Payable Common Stock - $1 par Paid In Capital In Excess of Par - CS Preferred Stock - $5 par Paid In Capital In Excess of Par - PS Treasury Stock Retained Earnings Dividends Sales Revenue Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad Debts Expense Depreciation Expense Wages Expense Rent Expense Insurance Expense Supplies Expense Interest Revenue Interest Expense Gain on Sale of Equipment Income Tax Expense Total Dr 266,000 62,000 Cr 5,000 24,000 6,000 65,000 195,000 0 75,000 44,000 45,000 0 0 25,000 15,000 0 200,000 26,840 3,000 86,000 1,000 50,000 0 105,000 5,000 819,000 3,840 9,000 380,000 5,000 50,000 260,000 63,000 16,000 6,000 1,000 8,000 15,000 4,000 1,471,840 1,471,840 Page 1 of 9 Instructions: You must turn in the work performed on the sheets printed with this page. This WILL NOT BE ACCEPTED ON PLAIN PAPER. Write the journal entries (on the following General Journal page) required for each of the events described below. Write the entries in the order described below (#1 - #8). Use ONLY the accounts listed on the trial balance for your journal entries. Post the transactions to individual T-accounts and prepare an adjusted trial balance for Rocky Mountain Company as of December 31, 2016. 1. The company purchased a building December 1, 2016 with a LT Mortgage Payable of $300,000 at 8% interest. (Record the purchase of the building.) 2. The company issued 1,000 shares of Common Stock for $6,000 on December 25, 2016. 3. On December 29, 2016 the company declared a cash dividend of $3.00 per share for common stock on the shares issued and declared (including the additional 1,000 shares declared on December 25th.) 4. The terms of the LT mortgage payable from #1 above require the company to make monthly installment payments over the term of the loan. Each payment consists of interest on the unpaid balance of the loan and a reduction of loan principal. Record the first monthly payment of $3,800 on the LT Mortgage Payable on December 31, 2016. 5. The company last paid interest on the ST note payable on November 1, 2016. Record the accrued interest expense for the last 2 months of 2016. The annual interest rate is 8%. Round to nearest whole dollar. 6. The Bonds Payable and related Premium amounts on the Nov. trial balance relate to the Jan. 1, 2016 issuance of the following bonds: On Jan. 1, 2016, the company issued 10%, 10-year bonds when the market rate for similar investments was 8%. The company pays interest each year on January 1st. On Dec. 31, 2016, use the effective interest method of amortizing the premium on bonds payable to accrue the interest expense for 2016. Round your interest expense calculation to the nearest whole dollar. 7. The Unearned Revenue amount on the Nov. trial balance relates to amounts that the company previously collected in cash for sales that were to be completed in the future. The company completed some of these sales during December and now owes only $16,000 of that unearned revenue. Record the necessary adjustment for December 31, 2016. 8. On December 31, 2016, the company purchased 50 shares of its own Preferred Stock for Treasury Stock for $11 per share. Page 2 of 9 GENERAL JOURNAL DATE ACCOUNT NAME DEBIT CREDIT Page 3 of 9 Use the space below for T-accounts (REQUIRED). (Specific instructions: Prepare T-accounts for each account affected by a journal entry. Write in the unadjusted balance for each of these accounts (from page 1)...the unadjusted balance might be a debit, a credit, or zero balance. Now you are ready to post your journal entries from page 3 onto the corresponding T-accounts and then calculate adjusted balances.) Page 4 of 9 Rocky Mountain Company ADJUSTED TRIAL BALANCE 12/31/16 Dr Cr Cash Accounts Receivable Allowance for Doubtful Accounts Short Term Note Receivable Supplies Inventory Equipment Building Accumulated Depreciation Copyright Accounts Payable Dividends Payable Interest Payable Unearned Revenue ST Note Payable LT Mortgage Payable Bonds Payable Premium on Bonds Payable Common Stock - $1 par Paid In Capital In Excess of Par - CS Preferred Stock - $5 par Paid In Capital In Excess of Par - PS Treasury Stock Retained Earnings Dividends Sales Revenue Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad Debts Expense Depreciation Expense Wages Expense Rent Expense Insurance Expense Supplies Expense Interest Revenue Interest Expense Gain on Sale of Equipment Income Tax Expense Total Page 5 of 9 1. What is the effect on the accounting equation when Treasury Stock is purchased? Assets = Liabilities + Stockholders' Equity _____ = _______ + _________________ (fill in blanks with arrows to indicate what changes and in which direction) 2. How many Common Stock shares are outstanding at 12/31/2016? (HINT: Remember that the treasury shares purchased on 12/31/2016 were Preferred Shares, not Common Shares) 3. If this company had a common stock 3-1 stock split on Dec. 31, 2016: a. How many shares would there be after the split? b. What is the par value per share in dollars after the split? 4. Does the Carrying Value of the Bonds Payable and Premium increase or decrease over the life of the bonds? 5. What will be the balance in the Mortgage Payable Account at Jan. 31, 2017 after the second monthly payment is made? 6. The Company is about to issue $2,000,000 of 5-year, 12% bonds. Interest will be paid semiannually. The market interest rate for such securities is 10%. How much can The Company expect to receive from the sale (issuance) of these bonds? Page 6 of 9 Part 2: NOTE: This is a DIFFERENT COMPANY. Using the trial balance below, complete the Multi-Step Income Statement and prepare the Statement of Retained Earnings and Classified Balance Sheet on the pages which follow. To get full credit you must include all critical subtotals. Cash Accounts Receivable Allowance for Doubtful Accounts Short term Note Receivable Interest Receivable Supplies Inventory Prepaid Expenses Equipment Accumulated Depreciation Copyrights Accounts Payable Interest Payable Unearned Revenue Long Term Note Payable Common Stock Paid-in-Capital In Excess of Par - CS Retained Earnings (1/1/15) Dividends Sales Sales Returns & Allowances Sales Discounts Cost of Goods Sold Bad debt expense Depreciation Expense Amortization Expense Wages Expense Rent Expense Office Expense Supplies Expense Selling Expense Interest Expense Interest Revenue Income Tax Expense Totals Cajias Company Adjusted Trial Balance December 31, 2015 DEBIT 1,900 2,460 CREDIT 670 200 20 30 3,000 150 10,720 1,970 600 670 20 50 1,400 6,600 800 3,160 600 36,800 40 60 21,200 30 770 70 8,000 500 80 100 800 200 150 760 52,290 52,290 Page 7 of 9 Cajias Company Multi Step Income Statement For the year ended December 31, 2015 (Be sure to include all the necessary headings, totals and subtotals as outlined in Chapter 5. You may not need to use all the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Income Statement, use the right column for subtotals and totals.) Cajias Company Statement of Retained Earnings For the year ended December 31, 2015 Page 8 of 9 Cajias Company Classified Balance Sheet December 31, 2015 (Be sure to include all the necessary subtotals and totals as outlined in Chapter 2. You may not need to use all of the lines provided. Note: The two columns below do not represent debit and credit balances like they do on a trial balance. On the Balance Sheet, use the right column for subtotals and totals.) Page 9 of 9