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Marigold Corp's balance sheet at December 31, 2024, is presented as follow. During 2025, the following transactions occurred. 1. On January 1, Marigold issued 1,560
Marigold Corp's balance sheet at December 31, 2024, is presented as follow. During 2025, the following transactions occurred. 1. On January 1, Marigold issued 1,560 shares of $40 par, 7% preferred stock for $63,960. 2. On January 1, Marigold also issued 1,170 shares of the $10 par value common stock for $27,300. 3. Marigold performed services for $416,000 on account. 4. On April 1, 2025, Marigold collected fees of $46,800 in advance for services to be performed from April 1, 2025, to March 31,2026. 5. Marigold collected $358,800 from customers on account. 6. Marigold bought $45,630 of supplies on account. 7. Marigold paid $41,860 on accounts payable. 8. Marigold reacquired 520 shares of its common stock on June 1 for $28 per share. 9. Paid other operating expenses of $244,660. 10. On December 31, 2025, Marigold declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026. 11. An account receivable of $2,210 which originated in 2024 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $7,670 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $4,550 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30 -year life and a salvage value of $13,000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) (a) Prepare joumal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Adjusting entries 1. 2. 3. 4. 5
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