Question
Oriole Corporations trial balance at December 31, 2022, is presented below. All 2022 transactions have been recorded except for the items described below. Debit Credit
Oriole Corporations trial balance at December 31, 2022, is presented below. All 2022 transactions have been recorded except for the items described below.
Debit | Credit | |||
---|---|---|---|---|
Cash | $28,050 | |||
Accounts Receivable | 56,100 | |||
Inventory | 24,970 | |||
Land | 71,500 | |||
Buildings | 104,500 | |||
Equipment | 44,000 | |||
Allowance for Doubtful Accounts | $495 | |||
Accumulated DepreciationBuildings | 33,000 | |||
Accumulated DepreciationEquipment | 15,840 | |||
Accounts Payable | 21,230 | |||
Interest Payable | 0 | |||
Dividends Payable | 0 | |||
Unearned Rent Revenue | 8,800 | |||
Bonds Payable (10%) | 55,000 | |||
Preferred Stock ($20 par) | 0 | |||
Paid-in Capital in Excess of ParPreferred Stock | 0 | |||
Common Stock ($10 par) | 33,000 | |||
Paid-in Capital in Excess of ParCommon Stock | 6,600 | |||
Retained Earnings | 82,555 | |||
Treasury Stock | 0 | |||
Cash Dividends | 0 | |||
Sales Revenue | 627,000 | |||
Rent Revenue | 0 | |||
Bad Debt Expense | 0 | |||
Interest Expense | 0 | |||
Cost of Goods Sold | 440,000 | |||
Depreciation Expense | 0 | |||
Other Operating Expenses | 42,900 | |||
Salaries and Wages Expense | 71,500 | |||
Total | $883,520 | $883,520 |
Unrecorded transactions and adjustments:
1. | On January 1, 2022, Oriole issued 1,100 shares of $20 par, 6% preferred stock for $24,200. | |
2. | On January 1, 2022, Oriole also issued 1,100 shares of common stock for $25,300. | |
3. | Oriole reacquired 330 shares of its common stock on July 1, 2022, for $49 per share. | |
4. | On December 31, 2022, Oriole declared the annual cash dividend on the preferred stock and a $1.50 per share dividend on the outstanding common stock, all payable on January 15, 2023. | |
5. | Oriole estimates that uncollectible accounts receivable at year-end are $5,610. | |
6. | The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,500. | |
7. | The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,400. | |
8. | The unearned rent was collected on October 1, 2022. It was receipt of 4 months rent in advance (October 1, 2022 through January 31, 2023). | |
9. | The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2022, has not been paid or recorded. |
(Ignore income taxes.)
(a) 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. 2. 3. 4. 5. 6. 7. 8. 9. e Textbook and Media List of Accounts Save for Later Attempts: 0 of 5 used Submit Answer (b) Prepare an updated December 31, 2022, trial balance, reflecting the journal entries in part(a). ORIOLE CORPORATION Adjusted Trial Balance Debit Credit $ e Textbook and Media List of Accounts Save for later Attempts: 0 of 5 used Submit Answer Prepare a multiple-step income statement for the year ending December 31, 2022. (List other revenues before other expenses.) ORIOLE CORPORATION Income Statement V $ $Step by Step Solution
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