prepare the Trial Balance. The total of the Trial Balance should be $4,346,028.

Journal entries Account Date Debit Credit Calculation $ 275,000 1-Jan Cash =12,500 22 $ 25,000 $ 250,000 =12,500*2 Common Stock Paid in Capital in Excess of Par-Common Stock $ 406,000 1-Jan Cash =5,800*70 $ 174,000 $ 232,000 Preferred Stock =5,800*30 Paid in Capital in Excess of Par-Preferred Stock $ 195,000 1-Feb Equipment $ 15,000 $ 180,000 Cash Notes Payable $ 352,000 15-Mar Land Common Stock 40,000 =20,000*2 $ 312,000 Paid in Capital in Excess of Par-Common Stock 36.600 31-Mar Prepaid Insurance Cash 36,600 =1,750*22 1-May Treasury Stock 38,500 Cash 38,500 $ 926,896 31-May Cash Discount on Bonds Payable 73,104 $1,000,000 8 year 7% bonds Bonds Payable $ 180,000 30-Jul Notes Payable =180,000*6%*180/360 Interest expense 5,400 $ 185,400 Cash 1-Aug Cash Treasury Stock Paid in Capital from Sale of Treasury Stock =430*25 10,750 9,460 =430*22 1,290 15-Sep Retained Earnings 24 =1,104*25 27,590 Common Stock Dividends Distributable 2,207 =1,104 2 Paid in Capital in Excess of Par-Common Stock 25,383 30-Sep Common Stock Dividends Distributable 2,207 Common Stock 2,207 1-Oct Cash 7% note 40,000 Notes Payable 40,000 $1,860 payable per quarter =370*18 16-Oct Cash 6,660 Paid in Capital from Sale of Treasury Stock 2$ 1,290 Retained Earnings 190 Treasury Stock 8,140 =370*22 30-Nov Interest expense 39,569 Discount on Bonds Payable 4,569 =73,104/(8 yrs* 2) 35,000 -1,000,000*7%*6/12 Cash 1-Dec Preferred Dividends 24 12,960 =(5,000+5,800) *30*4% Workings below Common Dividends 22,513 Dividends Payable 35,473 30-Dec Dividends Payable 35,473 Cash 2$ 35,473 31-Dec Notes Payable 1,160 =40,000*7%*3/12 700 Interest expense 1,860 Cash $ 500,000 31-Dec Cash Accounts Receivable $1,475,000 Revenue $1,975,000 31-Dec Cash $ 500,000 $1,475,000 Accounts Receivable $1,975,000 Revenue $ 170,000 31-Dec Rent expense Utilities expense 13,200 $ 760,000 $ 140,000 $ 32,000 Salaries expense Advertising expense Medical insurance expense Commissions expense 63,000 Legal & accounting expense 18,000 Miscellaneous expense 8,400 $1,204,600 Cash Workings Opening Shares 24,000 1-Jan Shares Isued 12,500 15-Mar Shares Issued 20,000 Number of Common Shares Issued 56,500 (1,750) 1-May Treasury Stock purchased 1-Aug Treasury Stock reissued 430 Number of Common Shares O/s 55,180 15-Sep 2% Stock Dividend 1,104 Number of Common Shares 0/s Common dividend per share 56,284 |=55,180*2% 0.40 Common dividends =56,284*0.40 22,513 Sharpe Incorporated TAccounts Date Date Date Date Debit Debit Debit Debit Credit Date Credit Date Credit Date Credit Date Cash Accounts Receivable Prepaid Insurance Land 1-Feb $ 15,000 31-Mar $ 36,600 1-May $ 38,500 30-Jul $ 185,400 30-Nov $ 35,000 30-Dec $ 35,473 1-Jan $ 275,000 31-Dec $1,475,000 31-Mar $ 36,600 15-Mar $352,.000 1-Jan $ 406,000 31-May $ 926,896 1-Aug $ 10,750 1-Oct $ 40,000 16-Oct $ 6,660 31-Dec $ 500,000 31-Dec $ 1,860 31-Dec $1,204,600 $ 36,600 $ 612,873 Bal. $1,475,000 Bal. Bal. $352,000 Bal. Dividends Payable Bonds Payable Notes Payable Equipment 1-Feb $ 195,000 30-Dec $ 35,473 1-Dec $ 35,473 1-Feb $180,000 30-Jul $180,000 31-May $1,000,000 31-Dec $ 1,160 1-Oct $ 40,000 $ 195,000 Bal. $ 38,840 Bl. Bal. $1,000,000 Bal. Paid in Capital in Excess of Par-Comm Discount on Bonds Payable 30-Nov $ Common Stock Common Stock Dividends Distributable 31-May $ 73,104 1-Jan $ 25,000 30-Sep $ 2,207 15-Sep $ 2,207 1-Jan $ 250,000 4,569 15-Mar $ 312,000 15-Sep $ 25,383 15-Mar $ 40,000 30-Sep $ 2,207 $ 68,535 Bal. Bal. $ 587,383 $ 67,207 Bal. Bal. Paid in Capital from Sale of Treasury 16-Oct $ 1,290 Retained Earnings Preferred Stock Paid in Capital in Excess of Par-Pref 1-Aug $ 1,290 1-Jan $ 174,000 1-Jan $ 232,000 15-Sep $ 27,590 16-Oct $ 190 $ (27,780) $ 174,000 Bal. $ 232,000 Bal. Bal. Bal. Treasury Stock 1-Aug $ 16-Oct $ Preferred Dividends Common Dividends 1-May $ 38,500 1-Dec $ 12,960 1-Dec $ 22,513 9,460 8,140 $ 12,960 $ 22,513 $ 20,900 Bal. Bal. Bal. Utilities expense Salaries expense Rent expense Revenue 31-Dec $1,975,000 31-Dec $ 170,000 31-Dec $ 13,200 31-Dec $760,000 $ 13,200 Bal. $ 170,000 $1,975,000 Bal. Bal. Bal. $760,000 Advertising expense Medical insurance expense Commissions expense Legal & accounting expense 31-Dec $ 32,000 31-Dec $ 140,000 31-Dec $ 18,000 31-Dec $ 63,000 $ 63,000 $ 32,000 $ 140,000 $ 18,000 Bal. Bal. Bal. Bal. Miscellaneous expense Interest expense 31-Dec $ 8,400 30-Jul $ 5,400 30-Nov $ 39,569 31-Dec $ 700 nol Del Dal