Please complete part f and prepare a statement of cash flows. Thank you!

A Debit Credit Journal Entries Date Account title & explanation 202X 01-Jan Cash Preferred stock paid in Capital in Excess of par-Preferred stock To record issue of preferred stock) Question Parts Page 1 B 75810 31200 44610 42050 01-Jan Cash Common stock paid in Capital in Excess of par- Common stock (To record issue of preferred stock) 11600 304501 313947 11053 01-Jan Cash Discount on issue of Bond payable Bond Payable (To record issue of bond) 325000 28800 31-Dec Treasury stock Cash (To record reacquired of shares ) 28800 576601 31-Dec Cash Dividend Dividend payable (To record dividend payable) 57660 800 31-Dec Allowance for doubtful Account Bad debt expenses To record uncollectible) 800 4634 31-Dec Depreciation Expenses Accumulated depreciation - Building (To record depreciation on building) 4634| Updated trial Balance Account title Cash Account Receivable inventory debt Investment land Building Equipment Allowance for Doubtful Account Accumulated dereciation - Building Accumulated dereciation - Equipment Account payable Interest Payable unearned rent Revenue Dividend payable Income tax payable Bond Payable Discount on Bond Payable common stock paid in Capital in Excess of par - Common stock Preferred stock paid in Capital in Excess of par - Preferred stock retained earning Treasury stock Cash Dividend Sale revenue Rent revenue Gain on sale of Land bad debt exepnses Interest Expenses cost of goods sold Depreciation expenses Other operating expenses Salaries & Wages expenses Income tax Expenses Total 12024 31-Dec Depreciation Expenses Accumulated depreciation - Equipment (To record depreciation on Equipment) Dr Cr 518657 36362 54254 170000 0 2158501 75120 1740 67940 28072 32578 17875 36200 57660 117674 325000 10091 40800 75030 31200 44610 90051 288001 57660 956255 18100 5000 800 18837 478592 16658 62374 85656 117674 1946585 1946585 12024 65000 31-Dec Cash Gain on sale of Land Land (To record sale of land) 5000 600001 170000 31-Dec Debt Investment Cash (To record purchase of investment) 170000 18100 31-Dec Unearned rent Rent Revenue (to record one month rent revenue) 18100 18837 31-Dec Interest expenses Discount on Bond Payable Interest payable (To record accrued interest on bond) 962 17875 117674) 31-Dec Income tax Expenses Income tax payable To record accrued income tax) 117674 C Jolly Corporation Income Statement For The Year Ended December 31, 20XX $ $ 9,56,255 4,78,592 4,77,663 5,000 18,100 Sales Revenue Cost of goods sold Gross profit Other income Gain on sale of land Rent income Total other income Operating expenses Salaries and wages expense Other operating expenses Depreciation expenses Interest expense Bad debts expense Total operating expense Income before tax Tax expense Income after tax Question Parts Page 2 23,100 85,656 62,374 16,658 18,837 1,740 1,85,265 3,15,498 1,16,734 1,98,764 D Retained earning statement Beginning Balance Add: profit 90051 200364 Less : Dividend Ending Balance 290415 57660 232755 E F Jelly Carpet 23 (1) Statement of Cash Flows: 4 Jolly CORPORATION 5 Comparative Balance Sheets 6 December 31 of the previous year 7 8 Accounts Receivable (net of AFDA) 11,208 9 Inventory 15,790 10 Land 55,674 11 Buildings 215,850 12 Equipment 75,120 13 Accumulated Depreciation-Buildings 63,306 14 Accumulated Depreciation-Equipment 16,048 15 Accounts Payable 47,598 16 Interest Payable 0 17 Unearned Rent Revenue 0 18 Dividends Payable 0 19 Income Tax Payable 0 20 21 Instructions: Use the Balance Sheet for December 31, 20XX and the above ending 22 balances for last year's Balance Sheet accounts to prepare the "Net cash provided by 23 operating activities" section of the Cash Flow Statement below using the indirect method. 24 25 26 Jolly CORPORATION 27 Statement of Cash Flows 28 December 31, 20XX 29 Cash flows from operating activities 30 Net income 31 Adjustments to reconcile net income to 32 net cash provided by operating activities 33 Add: Depreciation expense $ 34 Add: Bad debt expense 35 Less: Gain on sale of land 36 Increase in accounts receivable 37 Increase in inventory 38 Decrease in accounts payable 39 Increase in unearned rent revenue 40 Increase in interest payable 41 Increase in dividends payable 42 Increase in income taxes payable 43 Net cash provided by operating activities $ $ Jolly Corporation's Trial Balance at December 31, 202X is presented below. 50 Unrecorded transactions: 51 Round all calculations if necessary to -o-decimals (to the nearest dollar, do not show cents). 52 1. On January 1, 202X, Jolly Corp. issued 520 shares of $60 par, 5% preferred stock for $75,810 53 54 2. On January 1, 20XX, Jolly Corp. also issued 5,800 shares of common stock for $42,050. 55 56 3. On January 1, 20XX, Jolly Corp. issued $325,000,5.5%, 9 year bonds when the market rate te was 6% Interest is to be paid annually on each January 1, beginning 1 year from date of issue. 59 4. Jolly Corp.reaquired 3,600 shares of its common stock on January 12, 20XX for $8.00 per share. All 202X transactions have been recorded except for the items described on the next page 57 Credit $ 61 5. On December 31, 20XX, Jolly Corp. declared the annual preferred dividend plus a $2.75 per 62 share dividend on the outstanding common stock, all payable in cash on January 31 of next year, Cash Accounts Receivable Inventory Debt Investments 63 Debit 220,650 36,362 54,254 0 60,000 215,850 75,120 64 6. On December 31, 20XX, Jolly Corp. estimates that the total amount of accounts receivable that 65 is uncollectible at year end is $1,740. Land 67 7. The building is being depreciated using the straight line method over 25 years. The salvage value is $100,000. 68 70 8. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $15,000. $ 71 73 9. Sold the Land for $65,000 cash. 74 75 10. Bought Debt Investments worth $170,000 for cash. 76 77 11. The unearned rent was collected on December 1, 20XX. It was receipt of 3 months' 78 rent in advance (December 1, 20xx through February 28 of next year) 79 80 12. The first cash interest payment on the 5.5% bonds is due January 1 of next year. The annual 81 interest on the bonds for 20XX has not yet been recorded. Use the effective interest method. 82 83 13. The Jolly Corporation must make an adjusting entry to accrue income tax expense on 84 Income Before Income Tax at a rate of 37%. The taxes will not be paid until March of next year. 85 2,540 63,306 16,048 32,578 0 54,300 0 0 0 0 Buildings Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Interest Payable Unearned Rent Revenue Dividends Payable Income Tax Payable Bonds Payable Discount on Bonds Payable Common Stock ($2 par) Paid in Capital in Excess of Par-Common Stock Preferred Stock ($60 par) Paid in Capital in Excess of Par-Preferred Stock Retained Earnings Treasury Stock Cash Dividends Sales Revenue Rent Revenue Gain on Sale of Land Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense Total 29,200 44,580 0 0 90,051 Transactions/ Beginning Trial Balance 0 0 956,255 0 0 0 0 478,592 0 62,374 85,656 o $ 1,288,858 $ 1,288,858 A Debit Credit Journal Entries Date Account title & explanation 202X 01-Jan Cash Preferred stock paid in Capital in Excess of par-Preferred stock To record issue of preferred stock) Question Parts Page 1 B 75810 31200 44610 42050 01-Jan Cash Common stock paid in Capital in Excess of par- Common stock (To record issue of preferred stock) 11600 304501 313947 11053 01-Jan Cash Discount on issue of Bond payable Bond Payable (To record issue of bond) 325000 28800 31-Dec Treasury stock Cash (To record reacquired of shares ) 28800 576601 31-Dec Cash Dividend Dividend payable (To record dividend payable) 57660 800 31-Dec Allowance for doubtful Account Bad debt expenses To record uncollectible) 800 4634 31-Dec Depreciation Expenses Accumulated depreciation - Building (To record depreciation on building) 4634| Updated trial Balance Account title Cash Account Receivable inventory debt Investment land Building Equipment Allowance for Doubtful Account Accumulated dereciation - Building Accumulated dereciation - Equipment Account payable Interest Payable unearned rent Revenue Dividend payable Income tax payable Bond Payable Discount on Bond Payable common stock paid in Capital in Excess of par - Common stock Preferred stock paid in Capital in Excess of par - Preferred stock retained earning Treasury stock Cash Dividend Sale revenue Rent revenue Gain on sale of Land bad debt exepnses Interest Expenses cost of goods sold Depreciation expenses Other operating expenses Salaries & Wages expenses Income tax Expenses Total 12024 31-Dec Depreciation Expenses Accumulated depreciation - Equipment (To record depreciation on Equipment) Dr Cr 518657 36362 54254 170000 0 2158501 75120 1740 67940 28072 32578 17875 36200 57660 117674 325000 10091 40800 75030 31200 44610 90051 288001 57660 956255 18100 5000 800 18837 478592 16658 62374 85656 117674 1946585 1946585 12024 65000 31-Dec Cash Gain on sale of Land Land (To record sale of land) 5000 600001 170000 31-Dec Debt Investment Cash (To record purchase of investment) 170000 18100 31-Dec Unearned rent Rent Revenue (to record one month rent revenue) 18100 18837 31-Dec Interest expenses Discount on Bond Payable Interest payable (To record accrued interest on bond) 962 17875 117674) 31-Dec Income tax Expenses Income tax payable To record accrued income tax) 117674 C Jolly Corporation Income Statement For The Year Ended December 31, 20XX $ $ 9,56,255 4,78,592 4,77,663 5,000 18,100 Sales Revenue Cost of goods sold Gross profit Other income Gain on sale of land Rent income Total other income Operating expenses Salaries and wages expense Other operating expenses Depreciation expenses Interest expense Bad debts expense Total operating expense Income before tax Tax expense Income after tax Question Parts Page 2 23,100 85,656 62,374 16,658 18,837 1,740 1,85,265 3,15,498 1,16,734 1,98,764 D Retained earning statement Beginning Balance Add: profit 90051 200364 Less : Dividend Ending Balance 290415 57660 232755 E F Jelly Carpet 23 (1) Statement of Cash Flows: 4 Jolly CORPORATION 5 Comparative Balance Sheets 6 December 31 of the previous year 7 8 Accounts Receivable (net of AFDA) 11,208 9 Inventory 15,790 10 Land 55,674 11 Buildings 215,850 12 Equipment 75,120 13 Accumulated Depreciation-Buildings 63,306 14 Accumulated Depreciation-Equipment 16,048 15 Accounts Payable 47,598 16 Interest Payable 0 17 Unearned Rent Revenue 0 18 Dividends Payable 0 19 Income Tax Payable 0 20 21 Instructions: Use the Balance Sheet for December 31, 20XX and the above ending 22 balances for last year's Balance Sheet accounts to prepare the "Net cash provided by 23 operating activities" section of the Cash Flow Statement below using the indirect method. 24 25 26 Jolly CORPORATION 27 Statement of Cash Flows 28 December 31, 20XX 29 Cash flows from operating activities 30 Net income 31 Adjustments to reconcile net income to 32 net cash provided by operating activities 33 Add: Depreciation expense $ 34 Add: Bad debt expense 35 Less: Gain on sale of land 36 Increase in accounts receivable 37 Increase in inventory 38 Decrease in accounts payable 39 Increase in unearned rent revenue 40 Increase in interest payable 41 Increase in dividends payable 42 Increase in income taxes payable 43 Net cash provided by operating activities $ $ Jolly Corporation's Trial Balance at December 31, 202X is presented below. 50 Unrecorded transactions: 51 Round all calculations if necessary to -o-decimals (to the nearest dollar, do not show cents). 52 1. On January 1, 202X, Jolly Corp. issued 520 shares of $60 par, 5% preferred stock for $75,810 53 54 2. On January 1, 20XX, Jolly Corp. also issued 5,800 shares of common stock for $42,050. 55 56 3. On January 1, 20XX, Jolly Corp. issued $325,000,5.5%, 9 year bonds when the market rate te was 6% Interest is to be paid annually on each January 1, beginning 1 year from date of issue. 59 4. Jolly Corp.reaquired 3,600 shares of its common stock on January 12, 20XX for $8.00 per share. All 202X transactions have been recorded except for the items described on the next page 57 Credit $ 61 5. On December 31, 20XX, Jolly Corp. declared the annual preferred dividend plus a $2.75 per 62 share dividend on the outstanding common stock, all payable in cash on January 31 of next year, Cash Accounts Receivable Inventory Debt Investments 63 Debit 220,650 36,362 54,254 0 60,000 215,850 75,120 64 6. On December 31, 20XX, Jolly Corp. estimates that the total amount of accounts receivable that 65 is uncollectible at year end is $1,740. Land 67 7. The building is being depreciated using the straight line method over 25 years. The salvage value is $100,000. 68 70 8. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $15,000. $ 71 73 9. Sold the Land for $65,000 cash. 74 75 10. Bought Debt Investments worth $170,000 for cash. 76 77 11. The unearned rent was collected on December 1, 20XX. It was receipt of 3 months' 78 rent in advance (December 1, 20xx through February 28 of next year) 79 80 12. The first cash interest payment on the 5.5% bonds is due January 1 of next year. The annual 81 interest on the bonds for 20XX has not yet been recorded. Use the effective interest method. 82 83 13. The Jolly Corporation must make an adjusting entry to accrue income tax expense on 84 Income Before Income Tax at a rate of 37%. The taxes will not be paid until March of next year. 85 2,540 63,306 16,048 32,578 0 54,300 0 0 0 0 Buildings Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Interest Payable Unearned Rent Revenue Dividends Payable Income Tax Payable Bonds Payable Discount on Bonds Payable Common Stock ($2 par) Paid in Capital in Excess of Par-Common Stock Preferred Stock ($60 par) Paid in Capital in Excess of Par-Preferred Stock Retained Earnings Treasury Stock Cash Dividends Sales Revenue Rent Revenue Gain on Sale of Land Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense Total 29,200 44,580 0 0 90,051 Transactions/ Beginning Trial Balance 0 0 956,255 0 0 0 0 478,592 0 62,374 85,656 o $ 1,288,858 $ 1,288,858