Delphinium Corp. Trial Balance at December $31,20$XX is presented below.

All $20$XX transactions have been recorded except for the items described on the next page.

Debit Credit

$ $126,934$

$225,500$

$95,125$

$0650,000$

$500,650$

$275,000$

$0$

$0$

$0$

$0$

$0$

$0303,912$

$.0335,000$

$251,4490$

$ $2,763,570$

$ $10,31552,275$

$52,550$

$35,278$

$0$

$40,5000$

$0$

$0$

$110,000$

$110,0000$

$01,235,944$

$1,116,7080$

$0$

$ $2,763,570$

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 $($$$1$ par$)$

Paid in Capital in Excess of Par$-$Common Stock

Preferred Stock $($$$5$ par$)$

Paid in Capital in Excess of Par$-$Preferred Stock

Retained Earnings

Treasury Stock

Cash Dividends

Sales Revenue

Rent Revenue

Gain on sale of land

Gain on sale of debt investments

Bad Debt Expense

Interest Expense

Cost of Goods Sold

Depreciation Expense

Other Operating Expenses

Salaries and Wages Expense

Income Tax Expense

Total

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Unrecorded transactions:

Round all calculations if necessary to $-0-$ decimals $($to the nearest dollar, do not show cents$).$

$1.$ On January $1,20$XX$,$ Delphinium Corp. issued $15,500$ shares of $$5$ par, $6\%$ preferred stock for $$185,000.$

$2.$ On January $1,20$XX$,$ Delphinium Corp. also issued $55,000$ shares of common stock for $$158,500.$

$3.$ On January $1,20$XX$,$ Delphinium Corp. issued $$900,000,6\%,12-$year bond when the market rate was $9\%.$

$($Hint: Cash received will be the present value of the bond$)$

Interest is to be paid annually on each January $1,$ beginning one year from date of issue.

$4.$ Delphinium Corp. reacquired $4,000$ shares of its common stock on January $12,20$XX for $$9\mathrm{.}00$ per share.

$5.$ On December $31,20$XX$,$ Delphinium Corp. declared the annual preferred dividend plus a $$1\mathrm{.}00$ per share dividend on the outstanding common stock, all payable in cash on January $31$ of next year.

$6.$ Bought Debt Investments worth $$72,000$ for cash. Debt investments are expected to be held for longer then a year.

$7.$ On December $31,20$XX$,$ Delphinium Corp. estimates that the total amount of accounts receivable that is uncollectible at year$-$end is $$22,550.$

$8.$ The building is being depreciated using the straight line method over $25$ years. The salvage value is $$55,000.$

$9.$ The equipment is being depreciated using the straight line method over $10$ years. The salvage value is $$10,000.$

$10.$ Sold the Land for $$750,000$ cash.

$11.$ The unearned rent for the current month was collected on December $1,20$XX$.$ The original amount received was $6$ months' rent in advance $($December $1$ of this year through May $31$ of next year$).$

$12.$ The first cash interest payment on the $6\%$ bonds is due January $1$ of next year. The annual interest on the bonds for $20$XX has not yet been recorded. Use the effective interest method.

$13.$ The Delphinium Corp. sold half of the Debt Investments for $$30,000$ cash

$14.$ The Delphinium Corp. must make an adjusting entry to accrue income tax expense on

Income Before Income Tax at a rate of $22\%.$ The taxes will not be paid until March of next year.

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Instructions:

$($a$)$ Prepare journal entries for the transactions listed above.

$($b$)$ Prepare an updated December $31,20$XX trial balance.

$($c$)$ Prepare a multiple$-$step income statement for the year ending December $31,20$XX$.$

$($d$)$ Prepare a retained earnings statement for the year ending December $31,20$XX$.$

$($e$)$ Prepare a classified balance sheet as of December $31,20$XX$.$

$($f$)$ Prepare a Statement of Cash Flows as of December $31,20$XX$.$

$($g$)$ and $($h$)$ Calculate and analyze the following ratios, clearly presenting your work and answers:

$1.$ Working Capital

$2.$ Current Ratio $5.$ Debt to Assets Ratio

$3.$ EPS $6.$ Times Interest Earned

$4.$ Payout Ratio $7.$ Free Cash Flow

$3.$ Check figures $($round all numbers to the whole dollar$)$

Updated Trial Balance Total: $4,428,807$

Net Income: $161,410$

Total Assets: $2,809,673$

Net Cash from Operating Activities: $165,239$