Prepare journal entries for 11-16 items

Kelly Ltd that sells toys extracted the following unadjusted trial balance from its books for the financial year ending on 31 December 2020. Account title Accounts payable Accounts receivable Allowance for doubtful accounts (1 January 2020) Equipment Accumulated depreciation - equipment (1 January 2020) Delivery trucks Accumulated depreciation - delivery trucks (1 January 2020) Common stock (620,000 shares at $1 par value each) Additional paid-in capital Cash at bank Inventories (1 January 2020) Bank loan (required to make a $20,000 repayment by the year ended 31 December 2021) Retained earnings (1 January 2020) Rent expense Revenues (all revenues are on credit) Purchases Wages expense Insurance expense Total Debit Credit $ $ 234,000 362,000 4,000 300,000 80,000 500,000 200,000 620,000 400,000 9,457,500 720,000 74,000 8,000,000 36,000 2,310,000 210,000 327,000 1,500 11.918.000 11,918,000 11 12 The impairment test was performed to determine the impairment loss of its non-current assets. The estimated future cash flows of total equipment and total delivery trucks were $200,000 and $100,000, respectively. The fair values of total equipment and total delivery trucks were $250,000 and $130,000, respectively. No record had been made. After a physical count on 31 December 2020, the cost of inventory was determined to be $320,000. On 31 December 2020, the sales price of the inventory was $380,000. The cost to sell the inventory was $80,000. Kelly Ltd issued bonds on 30 June 2020 and received cash. The face value of the bonds was $500,000. The annual coupon rate was $10%. The annual market interest rate was $8%. The bonds will mature in 10 years. Coupon payments were made semi-annually. Kelly Ltd uses effective amortization method to amortize any premium or discount on bonds. No record had been made to record the issuance of the bonds on 30 June 2020 and interest expense on 31 December 2020. Kelly Ltd re-purchased 20,000 shares of common stock in cash at a market price of $4 per share on 1 February 2020. No record had been made. 13 14 15 On 1 September 2020, Kelly Ltd re-issued 10,000 shares of common stock 16 re-purchased on 1 February 2020 in cash. The market price was $2 per share. No record had been made. On 31 December 2020, Kelly Ltd announced and distributed stock dividend of 110,000 shares of common stock. The market price of Kelly Ltd common stock was $5 per share. The par value of common stock was $1 per share. No record had been made