Record the transactions for working trial balance

Stump Hill Inc. is a merchandising company 1. The company collected 90% of the December 20x1 Accounts Receivable balance 2. The company sold $900,000 of products on account (The product cost was $600,000). It subsequently collected 90% of the amount owed by customers. 3. The company paid the account payable balance in January 20x2 and 50% of the accrued expenses 4. The company incurred and paid the following expenses during the year - Rent $10,000; Salaries and payroll related taxes $40,000; Administrative $20,000 5. The company depreciates assets using the straight line method. It assumes a 10-year useful life with no salvage value 6. The investments are classified as trading securities and the value shown on the balance sheet is at cost. However, the market value declined to $180,000 in 20x2 7. The company conducts an inventory count at year end and the count showed $50,000 worth of inventory in the warehouse. 8. The company accrued the following items at December 31, 20x2: - an invoice from the attorney for $5,000; unpaid payroll and related cost for $6,000. The notes were issued on 12/31/xl with a 5% coupon rate and a five-year maturity date. The first interest payment is due on 1/1/x3 9. The company uses the allowance method for uncollected accounts and expects that 2% of the accounts receivable balance is uncollectible 10. The company accrues income taxes at year end using a 10% effective tax rate Debit Credit Assets: Cash Accounts Receivable Inventory Property, Plant and Equipment Less: Accumulated Depreciation Investments 100,000 125,000 660,000 500,000 50,000 200,000 Liabilities Accounts Payable Accrued Expenses Unearned Revenue Bonds Payable 40,000 60,000 100,000 300,000 Stcokholders' Equity Common Stock Paid in Capital Retained Earnings 50,000 200,000 785,000 Revenues Expenses 1,585,000 1,585,000