Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help and show work if possible :) Quigley Corporations trial balance at December 31, 2017, is presented below. All 2017 transactions have been recorded

Please help and show work if possible :)

Quigley Corporations trial balance at December 31, 2017, is presented below. All 2017 transactions have been recorded except for the items described below

Debit

Credit

Cash

$27,500

Accounts Receivable

59,000

Inventory

23,400

Land

64,700

Buildings

93,600

Equipment

33,000

Allowance for Doubtful Accounts

$430

Accumulated DepreciationBuildings

29,500

Accumulated DepreciationEquipment

13,400

Accounts Payable

19,400

Interest Payable

0

Dividends Payable

0

Unearned Rent Revenue

8,800

Bonds Payable (10%)

44,000

Common Stock ($10 par)

34,000

Paid-in Capital in Excess of ParCommon Stock

6,800

Preferred Stock ($20 par)

0

Paid-in Capital in Excess of ParPreferred Stock

0

Retained Earnings

73,870

Treasury Stock

0

Cash Dividends

0

Sales Revenue

565,000

Rent Revenue

0

Bad Debt Expense

0

Interest Expense

0

Cost of Goods Sold

391,000

Depreciation Expense

0

Other Operating Expenses

38,600

Salaries and Wages Expense

64,400

Total

$795,200

$795,200

Unrecorded transactions and adjustments:

1. On January 1, 2017, Quigley issued 1,000 shares of $20 par, 6% preferred stock for $21,000.
2. On January 1, 2017, Quigley also issued 1,100 shares of common stock for $26,400.
3. Quigley reacquired 250 shares of its common stock on July 1, 2017, for $46 per share.
4. On December 31, 2017, Quigley declared the annual cash dividend on the preferred stock and a $1.30 per share dividend on the outstanding common stock, all payable on January 15, 2018.
5. Quigley estimates that uncollectible accounts receivable at year-end is $5,900.
6. The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,100.
7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $3,300.
8. The unearned rent was collected on October 1, 2017. It was receipt of 4 months rent in advance (October 1, 2017 through January 31, 2018).
9. The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2017, has not been paid or recorded.

(Ignore income taxes.)

Prepare journal entries for the transactions and adjustment listed above.

Prepare an updated December 31, 2017, trial balance, reflecting the journal entries in part(a).

Prepare a multiple-step income statement for the year ending December 31, 2017. (List other revenues before other expenses.)

Prepare a retained earnings statement for the year ending December 31, 2017. (List items that increase retained earning first.)

Prepare a classified balance sheet as of December 31, 2017. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment. Enter account name only and do not provide descriptive information.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

5th edition

9780470418239, 470239808, 9780470239803, 470418230, 978-1118128169

More Books

Students also viewed these Accounting questions

Question

Discuss values as they relate to cause-related marketing?

Answered: 1 week ago

Question

Identify the types of informal reports.

Answered: 1 week ago

Question

Write messages that are used for the various stages of collection.

Answered: 1 week ago