prepare the updated trial balance

Unrecorded transactions Round all calculations if necessary to -0. decimals to the nearest dollar, do not show cents). 1. On January 1, 2020, Best Value issued 520 shares of $60 par, 5% preferred stock for $75,810 2. On January 1, 2020, Best Value also issued 5,800 shares of common stock for $42,050. 3. On January 1, 2020, Best Value issued $325,000, 5.5%, 9 year bonds when the market rate was 6 Interest is to be paid annually on each January 1, beginning 1 year from date of issue. 4. Best Value reaquired 3,600 shares of its common stock on January 12, 2020 for $8.50 per share. S. On December 31, 2020, Best Value declared the annual preferred dividend plus a $2.75 per share dividend on the outstanding common stock, all payable in cash on January 31, 2021. 6. On December 31, 2020, Best Value estimates that the total amount of accounts receivable that is uncollectible at year end is $1,850. 7. The building is being depreciated using the straight line method over 25 years. The salvage value is $100,000. 8. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $15,000. 9. The unearned rent was collected on December 1, 2020. It was receipt of 3 months rent in advance (December 1, 2020 through February 28, 2021). 10. The first cash interest payment on the 5.5% bonds is due January 1, 2021. The annual interest on the bonds for 2020 has not yet been recorded. BestValue uses the effective interest method. re 11. The Best Value Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 26% The income taxes will not be paid until March 20zi. Instructions: (a) Prepare journal entries for the transactions listed above. (b) Prepare an updated December 31, 2020 trial balance. (c) Prepare a multiple step income statement for the year ending December 31, 2020 (d) Prepare a retained earnings statement for the year ending December 31, 2020. (e) Prepare a classified balance sheet as of December 31, 2020. Calculate the following ratios, clearly presenting your work and answers 1. Working capital 2. Current ratio 3. Return on Stockholders' Equity (use ending Common Stockholders' Equity) 4. EPS (all shares are already weighted) 5. Debt to assets ratio 6. Times interest earned ratio ACC 122 Spring 2020 Chapters 13-15 Project Best Value Corporation's Trial balance as of December 31, 2020 is presented below. All 2020 transactions have been recorded except for the items described below. Credit Debit 34,890 28,789 25,540 55,674 275,850 55,120 $ 1,027 63,306 16,048 35,278 48,900 Cash Accounts Receivable Inventory Land Buildings / Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Accounts Payable Interest Payable Dividends Payable Unearned Rent Revenue 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 Bad Debt Expense cper. Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense Total 29,200 44,580 107,904 676,068 413,542 53,274 79,632 1,022,311 $ 1,022,311 CONTINUED Whic 1850 70940 252718 18831 47160 326.00 3540 32 SOOG 2 BestValue Corporation Updated Trial Balance December 31, 2020 DR Cash 236,01% Accounts Receivable 28789 Inventory 25 SLO Land 55674 Buildings 2168.816 Equipment 47096 Allowance for Doubtful Accounts Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Accounts Payable Interest Payable Davable Dividends Payable Unearned Rent Revenue 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 30600 Cash Dividends 477600 Sales Revenue Rent Revenue Bad Debts Expense 823 Interest Expense 18837 Cost of Goods Sold 41 542 Depreciation Expense S058 Other Operating Expenses 53274 Salaries and Wages Expense 79632 Income Tax Expense 8540 Totals +568sos 1540864 33GOO 75030 31200 44610 84452 676068 16300 1541830 1536992 page 6 of 9 Unrecorded transactions Round all calculations if necessary to -0. decimals to the nearest dollar, do not show cents). 1. On January 1, 2020, Best Value issued 520 shares of $60 par, 5% preferred stock for $75,810 2. On January 1, 2020, Best Value also issued 5,800 shares of common stock for $42,050. 3. On January 1, 2020, Best Value issued $325,000, 5.5%, 9 year bonds when the market rate was 6 Interest is to be paid annually on each January 1, beginning 1 year from date of issue. 4. Best Value reaquired 3,600 shares of its common stock on January 12, 2020 for $8.50 per share. S. On December 31, 2020, Best Value declared the annual preferred dividend plus a $2.75 per share dividend on the outstanding common stock, all payable in cash on January 31, 2021. 6. On December 31, 2020, Best Value estimates that the total amount of accounts receivable that is uncollectible at year end is $1,850. 7. The building is being depreciated using the straight line method over 25 years. The salvage value is $100,000. 8. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $15,000. 9. The unearned rent was collected on December 1, 2020. It was receipt of 3 months rent in advance (December 1, 2020 through February 28, 2021). 10. The first cash interest payment on the 5.5% bonds is due January 1, 2021. The annual interest on the bonds for 2020 has not yet been recorded. BestValue uses the effective interest method. re 11. The Best Value Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 26% The income taxes will not be paid until March 20zi. Instructions: (a) Prepare journal entries for the transactions listed above. (b) Prepare an updated December 31, 2020 trial balance. (c) Prepare a multiple step income statement for the year ending December 31, 2020 (d) Prepare a retained earnings statement for the year ending December 31, 2020. (e) Prepare a classified balance sheet as of December 31, 2020. Calculate the following ratios, clearly presenting your work and answers 1. Working capital 2. Current ratio 3. Return on Stockholders' Equity (use ending Common Stockholders' Equity) 4. EPS (all shares are already weighted) 5. Debt to assets ratio 6. Times interest earned ratio ACC 122 Spring 2020 Chapters 13-15 Project Best Value Corporation's Trial balance as of December 31, 2020 is presented below. All 2020 transactions have been recorded except for the items described below. Credit Debit 34,890 28,789 25,540 55,674 275,850 55,120 $ 1,027 63,306 16,048 35,278 48,900 Cash Accounts Receivable Inventory Land Buildings / Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Accounts Payable Interest Payable Dividends Payable Unearned Rent Revenue 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 Bad Debt Expense cper. Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense Total 29,200 44,580 107,904 676,068 413,542 53,274 79,632 1,022,311 $ 1,022,311 CONTINUED Whic 1850 70940 252718 18831 47160 326.00 3540 32 SOOG 2 BestValue Corporation Updated Trial Balance December 31, 2020 DR Cash 236,01% Accounts Receivable 28789 Inventory 25 SLO Land 55674 Buildings 2168.816 Equipment 47096 Allowance for Doubtful Accounts Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Accounts Payable Interest Payable Davable Dividends Payable Unearned Rent Revenue 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 30600 Cash Dividends 477600 Sales Revenue Rent Revenue Bad Debts Expense 823 Interest Expense 18837 Cost of Goods Sold 41 542 Depreciation Expense S058 Other Operating Expenses 53274 Salaries and Wages Expense 79632 Income Tax Expense 8540 Totals +568sos 1540864 33GOO 75030 31200 44610 84452 676068 16300 1541830 1536992 page 6 of 9