Comprehensive Accounting Cycle Review 11-1 Sarasota Corp's balance sheet at December 31, 2016, is presented below. $25,000 75.000 SARASOTA CORP. Balance Sheet December 31, 2016 Cash $26.000 Accounts payable Accounts receivable 46,000 Common stock (510 par) Allowance for doubtful accounts (1.800) Retained carings Supplies Land 42,500 Buildings 154.500 Accumulated depreciation-buildings (23.667) $247613 During 2017, the following transactions occurred 1. On January 1, 2017, Sarasota issued 1,400 shares of 541 pat 75 preferred stock for $60,200. 2. On January 1, 2017, Sarasota also issued 840 shares of the $12 par value common stock for $22,000. 3. Sarasota performed services for $329,000 on account 4. On April 1, 2017, Sarasota collected fees of $35.000 in advance for services to be performed from April 1, 2017, to March 31, 2018 5. Sarasota collected $278,000 from customers on account 6. Sarasota bought $14,500 of supplies on account. 7. Sarasota paid $31,000 on accounts payable 8. Sarasota reacquired 470 shares of its common stock on June 1, 2017 for $28 per share 9. Paid other operating expenses of $187.000 10. On December 31, 2017, Sarasota declared the annual preferred stock dividend and a $1.20 per share divided on the outstanding common stock, 2018 11. An account receivable of $1,500 which originated in 2016 written off as uncollectible a le on January 15, Adjustment data 1. 2. 3. 4. 5. A count of supplies indicates that $5,500 of supplies remain unused at year-end. Recorded revenue from item 4 above The allowance for doubtful accounts should have a balance of 53,500 a year end Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $12,500 The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) SARASOTA CORP. Adjusted Trial Balance December 31, 2017 Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts 3200 Supplies 5500 Land 42500 Buildings 154500 Accumulated Depreciation-Buildings Accounts Payable Income Taxes Payable Unearned Service Revenue 8750 Dividends Payable 12960 Preferred Stock 57400 Pald-in Capital in Excess of Par Value-Preferred Stock 2800 Common Stock 85080 Paid-in Capital in Excess of Par Value-Common Stock 11920 Retained Earnings 147833 Cash Dividends 12960 Treasury Stock 13160 Service Revenue Bad Debt Expense 3200 Depreciation Expense 4733.33 Supplies Expense 33300 Other Operating Expenses 18700 Mace Paid-in Capital in Excess of Par Value-Preferred Stock 2800 Common Stock 85080 Paid-in Capital in Excess of Par Value-Common Stock 11920 NA Retained Earnings 833 Cash Dividends 12960 Treasury Stock 13160 Service Revenue Bad Debt Expense 3200 Depreciation Expense 4733.33 Supplies Expense 33300 Other Operating Expenses 18700 Income Tax Expense 288553.33 288553.33 TTTTTTTTTTTT SARASOTA CORP. Income Statement For the Year Ending December 31, 2017 : Service Revenue Operating Expenses Other Operating Expenses 187000 Supplies Expense 33300 Depreciation Expense 4733.33 Bad Debt Expense 3200 Total Operating Expenses 228233.33 Income Before Income Taxes : Income Tax Expense Net Income / (Loss) SHOW LIST OF ACCOUNTS Prepare a retained earnings statement for the year ending December 31, 2017. (List Items that increase SARASOTA CORP. Statement of Retained Earnings For the Year Ending December 31, 2017 : Retained Earnings, January 1 147833 Add : Net Income / (Loss) Less . Dividends 12960 Retained Earnings, December 31 SHOW LIST OF ACCOUNTS udy Prepare a classified balance sheet as of December 31, 2017. (List Current Assets in order of liquidity. List Propert SARASOTA CORP. Balance Sheet At December 31, 2017 Assets : Current Assets Cash Accounts Receivable Less Allowance for Doubtful Accounts Supplies Total Current Assets Property, Plant and Equipment Land Buildings Less Accumulated Depreciation-Buildings Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Income Taxes Payable Dividends Payable Unearned Service Revenue Total Current Liabilities Stockholders' Equity Paid-in Capital Dividends Payable Unearned Service Revenue Total Current Liabilities Stockholders' Equity Paid-in Capital Capital Stock Preferred Stock Common Stock Total Capital Stock Additional Paid-in Capital Paid-in Capital in Excess of Par Value-Preferred Stock Pald-in Capital in Excess of Par Value-Common Stock Total Additional Paid-in Capital Total Paid-in Capital Retained Earnings Total Pald-in Capital and Retained Earnings Less Treasury Stock Total Stockholders' Equity Total Liabilities and Stockholders' Equity SHOW LIST OF ACCOUNTS By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor