Comprehensive Accounting Cycle Review ACRI5 Quigley Corporation's trial balance at December 31.2020 is petented below. All 2030 - actions have been recorded except for the es described below Dehit Credit Cash 5 25.500 Accounts Receivable 51.000 Inventory 22,700 Land 65.000 Buildings 95.000 Equipment 40.000 Allowance for Doabdul Accounts 450 Acculad Depreciation Buildings 30,000 Accumulated Depreciation Equipment 14.400 Accounts Payable 19.300 Interest Payable Dividends Payable Unearned Rent Revenue S2000 Bonds Payable (10%) 50.000 Common Stock (510 par 30.000 Paid-in Capital in Excess of Par-Common Stock 6000 Preferred Stock (520 par) 0 -0- Pald-in Capital in Excess of Par-Preferred Stock Retained Earnings 75.00 Treasury Stock Cash Dividends Sales Revenge 570,000 Rent Revenue Bad Debt Expense -0- -0- Interest Expense Cost of Goods Sold 400,000 -0- Depreciation Expense 39,000 Other Operating Expenses 65.000 Salaries and Wapes Expense Total $903,200 SO).200 Unrecorded transactions and adjustments 1. On January 1, 2020. Quigley issued 1.000 shares of $20 par, preferred stocks for $22.000 2. On January 1, 2020. Quigley also issod 1.000 shares of common stock for $23,000 3. Quigley reacquired 300 shares of its common stock on July 1, 2020. for $49 pet share 4. On December 31, 2020, Quigley declared the annual cash dividend on the preferred stock anda $1.50 per share dividend on the outstanding common stock, all payable on January 15, 2001, 5. Quigley estimates that collectible 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 SS.000 7. The equipment is being depreciated using the straight-line method over 10 year. The sbage value is $4.000 %. The uncarned rent was collected on October 1, 2020. It was the 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 Decem- ber 31, 2020, 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, 2020, trial balance, reflecting the journal entries in C. Prepare a multiple-step income statement for the year ending December 31, 2020. d. Prepare a retained earnings statement for the year ending December 31, 2020. e. Prepare a classified balance sheet as of December 31, 2020. ON NO 000 2 12 000 N 3 4 NUD on N 5 6 7 8 - No 9 10 11 12 13 14 15 16 17 18 19 20 & 9 898 SUNSON %5%Bwwwwmsg9 Quigley Corporation Income Statement For the Year Ended December 31, 2020 1 10 2 11 3 Gross Profit 4 Operating Expense: 13 14 6 15 16 8 17 9 Total Operating Expenses 18 10 Operating Income 19 11 Other Revenue and Gains: 20 12 21 13 Other Expenses and Losses 22 14 23 15 Net Income 24 16 25 17 26 18 27 19 28 20 29 30 (d) 31 Quigley Corporation 32 Retained Earnings Statement 33 For the Year Ended December 31, 2020 34 1 Balance, 1/1 35 2 36 3 Total 37 4 38 5 Balance, 12/31 39 6 40 7 41 8 42 9 43 10 44 11 45 12 46 13 14 48 15 49 1 2 3 4 5 6 7 8 9 10 11 12 13 14 O 5 e) 6 7 8 Quigley Corporation Balance Sheet December 31, 2020 Assets 1 9 10 2 11 12 13 14 2 Current Assets 3 Cash 4 Account receivables 5 3 14 5 6 16 7 15 16 17 18 19 7 Total Current Assets 8 Property Plant and Equipment: 9 10 11 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 = = = 2012 21 13 22 14 Total Assets 23 15 24 16 Liabilities and Stockholders' Equity 25 17 Current Liabilities 26 18 27 19 28 20 29 21 30 22 Total Current Liabilities 31 23 Long Term Liabilities 32 24 33 25 Total Liabilities 34 26 35 27 Stockholders Equity 38 28 Capital Stock 3729 38 30 39 31 40 32 41 33 Total Paid in Capital 42 34 43 35 Total Pald in Capital & Retained Earnings 44 36 45 37 Total Stockholder's Equity 481 38 47 39 Total Liabilities & Stockholders Equity 48 40 40 50 51 52 28 27 28 29 30 31 32 33 34 35 36 37 38 19 140