Question 1 Ivanhoe Corporation's trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below. Debit Credit Cash $26,100 Accounts Receivable 59,000 Inventory 23,400 Land 66,800 Buildings 94,000 Equipment 30,000 Allowance for Doubtful Accounts $400 Accumulated Depreciation-Building 29,500 Accumulated Depreciation-Equipment 15,000 Accounts Payable 19,200 Interest Payable -0- Dividends Payable Unearned Rent Revenue 7,200 Bonds Payable (10%) 46,000 Common Stock ($10 par) 32,000 Paid-in Capital in Excess of Par-Common Stock 6,400 Preferred Stock ($20 par) Paid-in Capital in Excess of Par-Preferred Stock Retained Earnings 92,900 Treasury Stock -0- Cash Dividends Sales Revenue 563,000 -0- -0- -0- -0- -0- -0- Rent Revenue Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Total -0- 409,000 -0- 37,000 66,300 $811,600 $811,600 Unrecorded transactions and adjustments: 1. On January 1, 2020, Ivanhoe issued 1,000 shares of $20 par, 6% preferred stock for $21,000. 2. On January 1, 2020, Ivanhoe also issued 1,100 shares of common stock for $25,300. 3. Ivanhoe reacquired 270 shares of its common stock on July 1, 2020, for $49 per share. 4. On December 31, 2020, Ivanhoe declared the annual cash dividend on the preferred stock and a $1.40 per share dividend on the outstanding common stock, all payable on January 15, 2021. 5. Ivanhoe 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 $5,500. 7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $3,000. 8. The unearned rent was collected on October 1, 2020. It was receipt of 4 months' rent in advance (October 1, 2020 through January 31, 2021). 9. The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded. (Ignore income taxes.) Prepare an updated December 31, 2020, trial balance, reflecting the journal entries in part(a) IVANHOE CORPORATION Trial Balance December 31, 2020 Debit Credit Cash 59170 Accounts Receivable 59000 Allowance for Doubtful Accounts 5900 Inventory 23400 Land 66800 Buildings 94000 Equipment 30000 Accumulated Depreciation-Buildings 32450 Accumulated Depreciation Equipment 17700 Accounts Payable 19200 Unearned Rent Revenue 1800 Interest Payable 4600 Dividends Payable 6842 Bonds Payable 46000 Common Stock 43000 Preferred Stock 20000 Paid-in Capital in Excess of Par-Common Stock 20700 Paid-in Capital in Excess of Par-Preferred Stock 1000 Treasury Stock 13230 Retained Earnings 92900 Rent Revenue 5400 Sales Revenue 563000 Cash Dividends 6842 Bad Debt Expense 5500 Depreciation Expense 5650 Interest Expense 4600 Cost of Goods Sold 409000 Other Operating Expenses 37000 Other Operating Expenses 37000 Salaries and Wages Expense 66300 880492 880492 (e) Prepare a classified balance sheet as of December 31, 2020. (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.)
