Financial Statement Homework #3 Name YOU MUST SUBMIT ALL HANDWRITTEN PAGES OF THIS DOCUMENT Part 1: Insert the Trial Balance HERE Instructions: You must turn in the work performed on the sheets printed with this page. ACCEPTED ON PAIN PAPER This WILL NOT BE Write the journal entries (on the following General Journal page) required for each of the events described below. Write the entries in the order described below (#1-#8). Use ONLY the accounts listed on the trial balance for your journal entries. Post the transactions to individual T-accounts and prepare an adjusted tnial balance for your assigned company from page one as of December 31, 2017 . . Denver Mountain Company Trial Balance 1, The company purchased a building December 1, 2017 with a LT Mortqaqe Payable of $300,000 at 896 interest. (Record thepurchase of the building.) 272,00O Allowance t Short Term Note Receivable 2. The company issued 1,000 shares of Common Stock for $6,000 on December 25, 2017 50,000 5,000 62,000 75,00 vento 3. On December 29, 2017 the company dedared a cash dividend of $3.00 per share for common stock on the shares issued and declared (induding the additional 1,000 shares Issued on December 25th.] 4. The terms of the LT mortgaqe payable from #1 above require the company to make monthly installment ht 100,000 payments over the term of the loan. Each payment consists of interest on the unpaid balance of the loan and a reduction of loan principal, Record the first monthly payment of $3,800 on the LT Mortgage Payable on December 31, 2017 ble 0 Reve Note able 250 0 350,000 26,840 90,00O 86,00O 5. The company last paid interest on the ST note payable on November 1, 2017. Record the accrued LT Mortgage Payable interest expense for the last 2 months of 2017, The annual interest rate is 8%. Roundtonearest um on Common Stock $1.50 par d In Capital In Excess 6. The Bonds Payable and related Premium amounts on the Nov. trial balance relate to the Jan. 1, 2017 issuance of the following bonds: On Jan. 1, 2017, the company issued 10%, 10-year bonds when the market rate for similar investments was 8%, The company pays interest each year on January 1. On Dec. 31, 2017, use the effective interest method of amortizing the premium on bonds payable to accrue the interest expense for 2017. Round your interest expense calculation to the nearest whole dollar Paid In Capital In Excess of Par- PS Treasury Stock 50,000 etained Dividends 500 les Returns Sales Discounts ,000 of Goods 46,000 7. The Unearned Revenue amount on the Nov, trial balance relates to amounts that the company previously Depreciation Expense Wa Rent Ex 16,000 157,50O 98,000 25,000 collected in cash for sales that were to be completed in the future. The company completed some of these sales durinq December and now owes only $10,000 of that unearned revenue. Record the necessary adjustment for December 31, 2017 Interest Revenue 8. On December 31, 2017, the company purchased 50 shares of its own Preferred Stock for Treasury Stock Expense S00 for $11 per share. Income Tax Expense 46,000 156,500 ota 56,500
