Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE HELP ME WITH A TRIAL BALANCE PLZ Dinah Soars, Biff Wellington and Duane Pipe are the stockholders of Sharpe Incorporated. The charter of the

PLEASE HELP ME
WITH A TRIAL BALANCE PLZ image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Dinah Soars, Biff Wellington and Duane Pipe are the stockholders of Sharpe Incorporated. The charter of the corporation authorized 500,000 shares of $2 par common stock, and 100,000 shares of $30 par, 4%, preferred stock. As of January 1,2020 , there were 24,000 shares of common stock issued and outstanding and 5,000 shares of preferred stock issued and outstanding. (All starting balances, including the related dollar amounts for the transactions above have been recorded in the t-accounts.) Selected transactions completed by Sharpe Incorporated during the fiscal yearending December 31,2020 , are as follows: Jan 1 Issued 12,500 shares of $2 par common stock at $22, receiving cash. Jan 1 Issued 5,800 shares of $30 par, 4%, preferred stock at $70 for cash. Feb 1 Purchased equipment for $195,000, paying $15,000 cash and financing the remainder with a 180 -day, 6% note payable. Mar 15 Purchased land for $352,000 by issuing 20,000 shares of common stock. Mar 31 Purchased a two-year insurance policy for $36,600. May 1 Purchased 1,750 shares of the company's own common stock at $22 per share. May 31 Issued $1,000,000 of 8 -year, 7% bonds with interest payable semiannually. The amount of cash received was $926,896. July 30 Paid the amount due on the note payable signed on February 1. Aug 1 Sold 430 shares of treasury common stock purchased on May 1 for $25 per share. Sept 15 Declared a 2% stock dividend on common stock to be distributed on September 30 to stockholders of record on September 20. The market price per share on September 15 is $25 per share. (HINT: Dividends are always based on the number of OUTSTANDING shares. Round to the nearest share) Sept 30 Distributed the stock dividend declared September 15. Oct 1 Borrowed $40,000 from Second Bank by issuing an 7% note. The note is to be repaid in quarterly payments of principal plus interest totaling $1,860 per quarter. Oct 16 Sold 370 shares of treasury common stock purchased on May 1 for $18 per share. Nov 30 Paid the semiannual interest and amortized the discount on the bonds issued on May 31. Dec 1 Declared a cash dividend at the stated amount to preferred stockholders and .40 per share to common stockholders payable on December 30 to stockholder's of record on December 16. (HINT: don't forget the shares distributed from the stock dividend) Dec 30 Paid the cash dividends declared on December 1. Dec 31 Paid the first quarterly installment of the note issued on October 1. Dec 31 Record revenue for the year of $1,975,000, received $500,000 in cash, the remainder is on account. Dec 31 Record expenses for the year, paid in cash (one compound entry): Click on the Trial Balance tab and prepare the Trial Balance. You can copy over the account names from the chart of accounts to the trial balance tab. (Some accounts will have zero balances at this point. Just leave those blank.) Manually type in the balances that appear in the trial balance. The total of the Trial Balance (prior to adjustments) should be $4,346,028. If your balance does not agree, try to make any necessary corrections before you proceed. (Your tutor and I are available for assistance IF YOU START ON THE PROJECT EARLY and don't wait until the last minute. Last minute requests will NOT be accommodated.) CHART OF C COIINTS

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

Step: 3

blur-text-image

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 For Beginners Learn Easy And Fast Accounting Principles

Authors: Dan Wilson

1st Edition

1700199900, 978-1700199904

More Books

Students also viewed these Accounting questions