Debit Credit $26,900 56,000 23,400 63,900 92,800 36,000 $440 29,000 15,400 19,300 Cash Accounts Receivable Inventory Land Buildings Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Accounts Payable Interest Payable Dividends Payable Unearned Rent Revenue Bonds Payable (10%) Common Stock ($10 par) Paid-in Capital in Excess of Par-Common Stock Preferred Stock ($20 par) Paid-in Capital in Excess of Par-Preferred Stock Retained Earnings Treasury Stock Cash Dividends Sales Revenue -0- -0- 8,000 52,000 28,000 5,600 -0- -0- 27,260 -0- -0- 624,000 -0- Rent Revenue -0- -0- 407,000 Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense -0- 39,400 63,600 Total $809,000 $809,000 Unrecorded transactions and adjustments: 1. On January 1, 2020, Sunland issued 1,100 shares of $20 par, 6% preferred stock for $23,100. 2. On January 1, 2020, Sunland also issued 1,200 shares of common stock for $27,600. 3. Sunland reacquired 320 shares of its common stock on July 1, 2020, for $46 per share. 4. On December 31, 2020, Sunland declared the annual cash dividend on the preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2021. 5. Sunland estimates that uncollectible accounts receivable at year-end is $5,600. 6. The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,800. 7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $3,600. 8. The unearned rent was collected on October 1, 2020. It was 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 December 31, 2020, has not been paid or recorded. Prepare journal entries for the transactions and adjustment listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. Cash Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock 2. Cash Common Stock Paid-in Capital in Excess of Par-Common Stock 3. Treasury Stock Cash 4. Cash Dividends Dividends Payable 5. Bad Debt Expense Allowance for Doubtful Accounts 6. Depreciation Expense Accumulated Depreciation-Buildings 7. Depreciation Expense Accumulated Depreciation Equipment 8. Unearned Rent Revenue Rent Revenue 9. Interest Expense Interest Payable Cash $ Accounts Receivable x Inventory Land Buildings Equipment Allowance for Doubtful Accounts x Accumulated Depreciation-Buildings x Accumulated Depreciation Equipment x Accounts Payable Interest Payable Dividends Payable Unearned Rent Revenue x Bonds Payable X Common Stock x Paid-in Capital in Excess of Par-Common Stock X Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock X Retained Earnings X Treasury Stock x Cash Dividends x Sales Revenue Rent Revenue X Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Prepare a multiple-step income statement for the year ending December 31, 2020. (List other revenues before other expenses.) SUNLAND CORPORATION Income Statement For the Year Ended December 31, 2020 Sales Revenue Cost of Goods Sold Gross Profit/ (Loss) Operating Expenses Salaries and Wages Expense Tother Operating Expenses Depreciation Expense Bad Debt Expense Total Operating Expenses Income From Operations DO JUDO ID DI Other Revenues and Gains Rent Revenue Other Expenses and Losses Interest Expense Net Income / (Loss) Prepare a retained earnings statement for the year ending December 31, 2020. (List items that increase retained earning first.) SUNLAND CORPORATION Retained Earnings Statement For the Year Ended December 31, 2020 Retained Earnings, January 1 Add Net Income / (Loss) Less Cash Dividends Retained Earnings, December 31 Prepare a classified balance sheet as of December 31, 2020. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment. Enter account name only and do not provide descriptive information.) SUNLAND CORPORATION Balance Sheet December 31, 2020 Assets Current Assets Cash Accounts Receivable x Less Allowance for Doubtful Accounts Inventory Total Current Assets Property, plant and Equipment Land Buildings Less Accumulated Depreciation-Buildings Equipment Less TAccumulated Depreciation Equipment Total Property, plant and Equipment Total Assets Liabilities and Stockholders' Equity Current Liabilities X Accounts Payable $: x Interest Payable Dividends Payable Unearned Rent Revenue Total Current Liabilities Long-term Liabilities Bonds Payable Total Liabilities Stockholders' Equity Paid-in Capital Capital Stock Preferred Stock DO DOLITIO