Comprehensive Project XYZ Corporation's Trial Balance at December 31, 20XX is presented below. All 20xx transactions have been recorded except for the items described on the next page. Credit Debit 115,290 28,789 25,540 0 55,674 215,850 75,120 $ 1,077 63,306 16,048 35,278 0 54,300 0 0 0 Cash Accounts Receivable Inventory Debt Investments Land Buildings Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Interest Payable Unearned Rent Revenue Dividends Payable Income Tax Payable Bonds Payable Discount on Bonds Payable Common Stock ($2 par) Paid in Capital in Excess of Par-Common Stock Preferred Stock ($60 par) Paid in Capital in Excess of Par-Preferred Stock Retained Earnings Treasury Stock Cash Dividends Sales Revenue Rent Revenue Loss on Sale of Land Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense Total 29,200 44,580 0 0 107,904 0 0 776,068 0 0 0 0 478,592 0 53,274 79,632 0 $ 1,127,761 $ 1,127,761 CONTINUED ON NEXT PAGE Unrecorded transactions: Round all calculations if necessary to -- decimals (to the nearest dollar, do not show cents). 1. On January 1, 20XX, XYZ Corp. issued 520 shares of $60 par, 5% preferred stock for $75,810. On January 1, 20XX, XYZ Corp. also issued 5,800 shares of common stock for $42,050. on January 1, 20XX, XYZ Corp. issued $325,000, 5.5%, 9 year bonds when the market rate was 6%. Interest is to be paid annually on each January 1, beginning one year from date of issue. 4.XYZ Corp. reacquired 3,600 shares of its common stock on January 12, 20xx for $12.00 per share. S on December 31, 20XX, XYZ Corp. declared the annual preferred dividend plus a $2.75 per share dividend on the outstanding common stock, all payable in cash on January 31 of next year. 6. On December 31, 20XX, XYZ Corp. estimates that the total amount of accounts receivable that is uncollectible at year end is $3,750. X. The building is being depreciated using the straight line method over 25 years. The salvage value is $100,000. 8. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $15,000. . Sold the Land for $50,000 cash. 10. Bought Debt Investments worth $70,000 for cash 11. The unearned rent was collected on December 1, 20XX. It was receipt of 3 months' rent in advance (December 1, 20xx through February 28 of next year). 12. The first cash interest payment on the 5.5% bonds is due January 1 of next year. The annual interest on the bonds for 20XX has not yet been recorded. Use the effective interest method. 13. The XYZ Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 29%. The taxes will not be paid until March of next year. Instructions: (a) Prepare journal entries for the transactions listed above. (b) Prepare an updated December 31, 20XX trial balance. (c) Prepare a multiple-step income statement for the year ending December 31, 20xx. (d) Prepare a retained earnings statement for the year ending December 31, 20XX. (e) Prepare a classified balance sheet as of December 31, 20xx. (f) Prepare a statement of Cash Flows as of December 31, 20XX. (g) and (h) Calculate and analyze the following ratios, clearly presenting your work and answers: 1. Working Capital 2. Current Ratio 3. Return on Stockholders' Equity (use ending Common Stockholders' Equity) 4. EPS (all shares are already weighted) 5. Payout Ratio 6. Debt to Assets Ratio 7. Times Interest Earned 8. Free Cash Flow a General Journal Account Titles Debit Credit Date 1. 2. 3. 4. 5. 6. 7. 7. . 8. 9. CONTINUED DR CR 10. 11. 12. 13