Question
Can someone please please help me solve this problem step-by-step in its entirety? Comprehensive Problem: Quigley Corporations trial balance at December 31, 2017, is presented
Can someone please please help me solve this problem step-by-step in its entirety?
Comprehensive Problem: Quigley Corporations trial balance at December 31, 2017, is presented below. All 2017 transactions have been recorded except for the items described below.
Cash - $25,500 DR
Accounts Receivable - 51,000 DR
Inventory - 22,700 DR
Land - 65,000 DR
Buildings - 95,000 DR
Equipment - 40,000 DR
Allowance for Doubtful Accounts - $ 450 CR
Accumulated Depreciation Buildings - 30,000 CR
Accumulated Depreciation Equipment - 14,400 CR
Accounts Payable - 19,300 CR
Interest Payable - -0- CR
Dividends Payable - -0- CR
Unearned Rent Revenue - 8,000 CR
Bonds Payable (10%) - 50,000 CR
Common Stock ($10 par) - 30,000 CR
Paid-in Capital in Excess of Par Common Stock - 6,000 CR
Preferred Stock ($20 par) - -0- CR
Paid-in Capital in Excess of Par Preferred Stock - -0- CR
Retained Earnings - 75,050 CR
Treasury Stock - -0- DR
Cash Dividends - -0- DR
Sales Revenue - 570,000 CR
Rent Revenue - -0- CR
Bad Debt Expense - -0- DR
Interest Expense - -0- DR
Cost of Goods Sold- 400,000 CR
Depreciation Expense - -0- DR
Other Operating Expenses - 39,000 CR
Salaries and Wages Expense - 65,000 CR
TOTAL $803,200 DR $803,200 CR
Unrecorded transactions and adjustments:
1. On January 1, 2017, Quigley issued 1,000 shares of $20 par, 6% preferred stock for $22,000.
2. On January 1, 207, Quigley also issued 1,000 shares of common stock for $23,000.
3. Quigley reacquired 300 shares of its common stock on July 1, 2017, for $49 per share.
4. On December 31, 2017, Quigley declared the annual cash dividend on the preferred stock and a $1.50 per share dividend on the outstanding common stock, all payable on January 15, 2018.
5. Quigley estimates that uncollectible accounts receivable at year-end is $5,100.
6. The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,000.
7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,000.
8. The unearned rent was collected on October 1, 2017. It was the receipt of 4 months rent in advance (October 1, 2017 through January 31, 2018).
9. The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2017, has not been paid or recorded.
Instructions
(Ignore income taxes.)
(a). Prepare journal entries for the transactions and adjustment listed above.
(b). Prepare an updated December 31, 2017, trial balance, reflecting the journal entries in (a). (b) Total $871,200
(c ). Prepare a multiple-step income statement for the year ending December 31, 2017.
(d). Prepare a retained earnings statement for the year ending December 31, 2017.
(e). Prepare a classified balance sheet as of December 31, 2017. (e). Total assets $273,400.
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