Peak Corporation's Trial balance as of December 31, 2019 is presented below. All 2019 transactions have been recorded except for the items described below. Credit Debit 53,471 46,365 19,587 76,265 204,400 93,400 329 60,984 28,800 23,689 18,500 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 ($4 par) Paid in Capital in Excess of Par-Common Stock Preferred Stock ($18 par) Paid in Capital in Excess of Par-Preferred Stock 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 Income Tax Expense Total 65,000 12,254 83,356 659,426 347,892 35,489 75,469 952,338 $ 952,338 CONTINUED Unrecorded transactions. Round all calculations if necessary to -o-decimals (to the nearest dollar, do not show cents). 1. On January 1, 2019, Peak issued 1,200 shares of $18 par, 6% preferred stock for $72,350. 2. On January 1, 2019, Peak also issued 8,000 shares of common stock for $94,275. 3. On January 1, 2019. Peak issued $125,000, 5%, 7 year bonds when the market rate was 6%. Interest is to be paid annually on each January 1, beginning 1 year from date of issue. 4. Peak reaquired 1,300 shares of its common stock on January 14, 2019 for $14 per share. 5. On December 31, 2019, Peak declared the annual preferred dividend plus a $0.75 per share dividend on the outstanding common stock, all payable in cash on January 25, 2020. 6. Peak estimates that the total amount of accounts receivable that is uncollectible at year end is $1,584. 7. The building is being depreciated using the straight line method over 25 years. The salvage value is $35,000. 8. The equipment is being depreciated using the straight line method over 6 years. The salvage value is $7,000. 9. The unearned rent was collected on October 1, 2019 and has already been recorded. It was receipt of 4 months' rent in advance (October 1, 2019 through January 31, 2020). 10. The annual interest on the bonds for 2019 has not been recorded. Peak uses the effective interest method. 11. ine Peak Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 28%. The income taxes will not be paid until March 2020. Instructions: (a) Prepare Journal entries for the unrecorded transactions listed above. (b)Prepare an updated December 31, 2019 trial balance, reflecting the unrecorded transactions. (c) Prepare a multiple-step income statement for the year ending December 31, 2019 (d) Prepare a retained earnings statement for the year ending December 31, 2019 (e) Prepare a classified balance sheet as of December 31, 2019. (f) Calculate the following ratios, clearly presenting your work and answers: 1. Working capital 2. Current ratio 3. Return on Stockholders' Equity 4. EPS 5. Debt to assets ratio 6. Times interest earned ratio Peak Corporation General Journal ACCU Tiles Peak Corporation Updated Trial Balance December 31, 2019 DR 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 ($4 par) Paid-in Capital in Excess of Par - Common Stock Preferred Stock ($18 par) Paid-in Capital in Excess of Par - Preferred Stock Retained Earnings Treasury Stock Cash Dividends Sales Revenue Rent Revenue Bad Debts Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense Totals Peak Corporation Income Statement For the Year Ended December 31, 2019 Peak Corporation Retained Earnings Statement For the Year Ended December 31, 2019 6 of 8 Peak Corporation Balance Sheet December 31, 2019 Assets Liabilities and Stockholders' Equity 7 of 8 (f) Ratios: Using the ratios as found in our textbook, calculate the following for the Peak Corporation using the numbers you've arrived at in the project. Round answers as needed to 2 decimal places. Be sure to clearly present all of your work, including all ratio formulas. You may use the reverse side if necessary. 1. Working Capital: 2. Current Ratio: 3. Return on Stockholders' Equity: (Use ending Common Stockholders' Equity, not average. Common Stockholders' Equity does not include the par value of preferred stock.) 4. EPS: (all shares are evenly weighted) 5. Debt to Assets ratio: 6. Times Interest Earned Ratio