Sunland 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 $26,900 Accounts Receivable 56,000 Inventory 23,400 Land 63,900 Buildings 92,800 Equipment 36,000 Allowance for Doubtful Accounts $440 Accumulated Depreciation-Buildings 29,000 Accumulated Depreciation-Equipment 15,400 Accounts Payable 19.300 Interest Payable -0- Dividends Payable -0- Unearned Rent Revenue 8,000 Bonds Payable (10%) 52.000 Common Stock ($10 par) 28,000 Paid-in Capital in Excess of Par-Common Stock 5,600 Preferred Stock ($20 par) -0- Paid-in Capital in Excess of Par-Preferred Stock -0- Retained Earnings 27,260 Treasury Stock -0- Cash Dividends -0- Sales Revenue 624,000 Rent Revenue -0- Bad Debt Expense -0- Interest Expense -0- Cost of Goods Sold 407,000 Depreciation Expense -0- Other Operating Expenses 39,400 Salaries and Wages Expense 63,600 Total $809,000 $809,000 Unrecorded transactions and adjustments: 1. 2. 3. On January 1, 2020, Sunland issued 1,100 shares of $20 par, 6% preferred stock for $23,100. On January 1, 2020, Sunland also issued 1,200 shares of common stock for $27,600. Sunland reacquired 320 shares of its common stock on July 1, 2020, for $46 per share. On December 31, 2020, Sunland declared the annual cash dividend on the preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2021. Sunland estimates that uncollectible accounts receivable at year-end is $5,600. 4. 5. 6. The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,800. 7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $3,600. 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). 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. 9. (Ignore income taxes.) (c) Prepare a multiple-step income statement for the year ending December 31, 2020. (List other revenues before other expenses.) SUNLAND CORPORATION Income Statement $ $ . $ e Textbook and Media List of Accounts Save for Later Attempts: 0 of 3 used Submit
