Blue Spruce Corp's balance sheet at December 31, 2024, is presented as follow. Cash Accounts receivable Allowance for doubtful accounts Supplies Land BLUE SPRUCE CORP. Balance Sheet December 31, 2024 Buildings Accumulated depreciation-buildings $14,760 27,300 (900) 2,640 24,000 85,200 (13,200) $139,800 Accounts payable Common stock ($10 par) Retained earnings $15,360 48,000 76,440 $139,800

Blue Spruce Corp.'s balance sheet at December 31, 2024, is presented as follow. During 2025, the following transactions occurred. 1. On January 1, Blue issued 720 shares of $40 par, 7% preferred stock for $29,520. 2. On January 1, Blue also issued 540 shares of the $10 par value common stock for $12,600. 3. Blue performed services for $192,000 on account. 4. On April 1, 2025, Blue collected fees of \$21,600 in advance for services to be performed from April 1,2025, to March 31, 2026. 5. Blue collected $165,600 from customers on account. 6. Blue bought $21,060 of supplies on account 7. Blue paid $19,320 on accounts payable. 8. Blue reacquired 240 shares of its common stock on June 1 for $28 per share. 9. Paid other operating expenses of $112,920, 10. On December 31.2025 , Blue declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026. 11. An account recelvable of $1,020 which originated in 2024 is written off as uncollectiole: Adjustment data: 1. A count of supplies indicates that $3,540 of supplies remain unused at year-end. 2. - Recorded revenue from item 4 above. 3. The allowatice for doubtful accounts should have a balance of $2,100 at year end, 4. Depreciation is recorded on the building on a straight-line basis based on a 30 -year life and a salvage value of $6,000, 5. The income tax rate is 30\%. (Hint. Prepare the income statement up to income before taxes and multiply by 30% to compute the amount) Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account tities and enter 0 for the amounts. Record joumal entries in the onder presented in the problem)