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Harmony Corporation's Trial balance as of December 31, 2017 is presented below. All 2017 transactions have been recorded except for the items described below. Unrecorded

Harmony Corporation's Trial balance as of December 31, 2017 is presented below. All 2017 transactions have been recorded except for the items described below.

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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, 2017, Harmony issued 1,500 shares of $22 par, 8% preferred stock for $43,700.

2. On January 1, 2017, Harmony also issued 2,000 shares of common stock for $54,000.

3. On January 1, 2017, Harmony issued $80,000, 6%, 5 year bonds when the market rate was 7%. Interest is to be paid annually on each January 1, beginning 1 year from date of issue.

4. Harmony reaquired 500 shares of its common stock on September 19, 2017 for $39 per share.

5. On December 31, 2017, Harmony declared the annual preferred dividend and a $1.75 per share dividend on the outstanding common stock, all payable in cash on January 20, 2018.

6. Harmony estimates that the total amount of accounts receivable that is uncollectible at year end is $1,904.

7. The building is being depreciated using the straight line method over 20 years. The salvage value is $22,500.

8. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $13,500.

9. The unearned rent was collected on September 1, 2017. It was receipt of 5 months' rent in advance (September 1, 2017 through January 31, 2018).

10. The annual interest on the bonds for 2017 has not been recorded. Harmony uses the effective interest method.

11. The Harmony Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 29%. The income taxes will not be paid until March 2018.

Prepare a multiple-step income statement for the year ending December 31, 2017.

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 Income Tax Payable Bonds Payable Discount on Bonds Payable Common Stock ($3 par) Paid in Capital in Excess of Par-Common Preferred Stock ($22 par) Paid in Capital in Excess of Par-Preferred Retained Earnings Treasury Stock Cash Dividends Sales Revenue Rent Revenue Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense ncome Tax Expense Total Debit Credit 49,850 47,600 20,423 65,400 125,000 74,300 30,750 24,320 15,060 13,000 30,000 11,834 63,127 628,083 327.564 41,256 65,421 316,814 816814 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 Income Tax Payable Bonds Payable Discount on Bonds Payable Common Stock ($3 par) Paid in Capital in Excess of Par-Common Preferred Stock ($22 par) Paid in Capital in Excess of Par-Preferred Retained Earnings Treasury Stock Cash Dividends Sales Revenue Rent Revenue Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense ncome Tax Expense Total Debit Credit 49,850 47,600 20,423 65,400 125,000 74,300 30,750 24,320 15,060 13,000 30,000 11,834 63,127 628,083 327.564 41,256 65,421 316,814 816814

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