CP15 Quigley Corporations trial balance at December 31, 2017, is presented below. All 2017 transactions have been recorded except for the items described below. Dr. Cr. Cash 25,500 Accounts Receivable 51,000 Inventory 22,700 Land 65,000 Building 95,000 Equipment 40,000 Allowance for Doubtful Accounts 450 Accumulated Depreciation Building 30,000 Accumulated Depreciation Equipment 14,400 Accounts Payable 19,300 Interest Payable 0 Dividends Payable 0 Unearned Rent Revenue 8,000 Bonds Payable (10%) 50,000 Common Stock ($10 par) 30,000 Paid-in Capital in Excess of Par Common Stock 6,000 Preferred Stock ($20 par) 0 Paid-in Capital in Excess of Par Preferred Stock 0 Retained Earnings 75,050 Treasury Stock 0 Cash Dividends 0 Sales Revenue 570,000 Rent revenue 0 Bad debt Expense 0 Interest Expense 0 Cost of Goods Sold 400,000 Depreciation Expense 0 Other Operating Expenses 39,000 Salaries and wages Expense 65,000 Total 803,200 803,200 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, 2017 , 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. Date Explanation Dr Cr Jan 1 Cash 22,000 Preferred Stock (1,000*20) 20,000 Paid in Capital in excess of par preferred stock 2,000 Jan 1 Cash 23,000 Common Stock 10,000 Paid in capital in excess of par common stock 13,000 Jul 1 Treasury Stock (300*49) 14,700 Cash 14,700 Dec 31 Cash Dividends (1000*20*6%+1.5(3000+1000-300)) 6,750 Dividends Payable 6,750 Dec 31 Bad debt Expense 5,100 Allowance for doubtful accounts 5,100 Dec 31 Depreciation Expense (95,000-5000/30) 3,000 Accumulated Depreciation - Building 3,000 Dec 31 Depreciation Expense (40,000-4000/10) 3,600 Accumulated Depreciation Equipment 3,600 Oct 1 Unearned rent revenue(8000/4*3) 6,000 Rent Revenue 6,000 (to record prepaid rent expence) (b) Prepare an updated December 31, 2017, trial balance, reflecting the journal entries in (a). (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.