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Sunland Corporations trial balance at December 31, 2021, is presented below. SUNLAND CORPORATION Trial Balance December 31, 2021 Debit Credit Cash $ 48,000 Accounts receivable

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Sunland Corporations trial balance at December 31, 2021, is presented below.

SUNLAND CORPORATION Trial Balance December 31, 2021
Debit Credit
Cash $ 48,000
Accounts receivable 51,000
Allowance for doubtful accounts $ 2,500
Merchandise inventory 22,700
Investment in associate 85,000
Investment at FVTOCIequity 30,000
Land 90,000
Building 200,000
Accumulated depreciationbuilding 40,000
Equipment 40,000
Accumulated depreciationequipment 15,000
Accounts payable 18,775
Income tax payable 4,500
Bonds payable (6%, due January 1, 2026) 126,025
Common shares, unlimited number of no par value shares authorized, 100,000 issued 100,000
Retained earnings 110,775
Accumulated other comprehensive income 5,000
Sales 750,000
Cost of goods sold 370,000
Operating expenses 180,000
Interest revenue 375
Interest expense 6,250
Income tax expense 50,000
Total $1,172,950 $1,172,950

All transactions and adjustments for 2021 have been recorded and reported in the trial balance except for the items described below.

Jan. 7 Issued 1,200 preferred shares for $25,000. In total, 100,000, $2, noncumulative, convertible, preferred shares are authorized. Each preferred share is convertible into five common shares.
Mar. 16 Purchased 800 common shares of Osborne Inc., to be held for trading purposes, for $25 per share.
July 1 Purchased $100,000 Solar Inc. 10-year, 5% bonds at 108.2, when the market interest rate was 4%. Interest is received semi-annually on July 1 and January 1. Sunland purchased the bonds to earn interest.
Aug. 2 Sold the Osborne common shares for $26 per share.
5 Invested $20,000 in a money-market fund.
Sept. 25 600 of the preferred shares issued on January 7 were converted into common shares.
Oct. 24 Cashed in the money-market fund, receiving $20,000 plus $200 interest.
Nov. 30 Obtained a $50,000 bank loan by issuing a three-year, 6% note payable. Sunland is required to make equal blended payments of $1,521 at the end of each month. The first payment was made on December 31. Note that at December 31, $15,757 of the note payable is due within the next year.
Dec. 1 Declared the annual dividend on the preferred shares on December 1 to shareholders of record on December 23, payable on January 15.
31 Sunland owns 40% of RES. RES earned $22,400 and paid dividends of $1,400 in 2021. The fair value of the RES investment was $98,000.
31 Semi-annual interest is receivable on the Solar Inc. bonds on January 1, 2022. The bonds were trading at 106 on December 31, 2021.
31 The annual interest is due on the bonds payable on January 1, 2022. The par value of the bonds is $130,000 and the bonds were issued when the market interest rate was 7%.
31 The fair value of the long-term investment at FVTOCIequity was $28,200. Ignore income tax calculation.

Question Part Score

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Prepare the statement of comprehensive income for Sunland. For the purposes of this question, ignore the income tax on other comprehensive income and accumulated other comprehensive income. (Round answers to 0 decimal places, e.g. 5,275.)

Prepare the statement of changes in shareholders equity for Sunland. For the purposes of this question, ignore the income tax on other comprehensive income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to 0 decimal places, e.g. 5,275.)

SUNLAND CORPORATION Statement of Changes in Shareholders Equity Year Ended December 31, 2021December 31, 2021Month Ended December 31, 2021
Preferred Shares Common Shares Retained Earnings Accumulated Other Comprehensive Income Total
Balance, January 1, 2021 $ $ $ $ $
Issued shares for cash
Preferred shares converted
Cash dividendspreferred
Comprehensive income
Balance, December 31, 2021 $ $ $ $ $
1:11 Sunland Corporation til balance at December 31, 2021, is presented below SUNLAND CORPORATION Trial Balance tember 31, 2021 See Arch Allowance for al $250 Immo IVIOCI Land Acculated depreciatice-building Acable Bademy 2011 Come shores, unlimited number of no por valestined, 1000 Retained ning Acculadoder comprchensive income Sale Toul All transactions and adjustments for 2021 have been recorded and reported in the beaches described below and .200 prefered shees fe25.000 a 10.000.52cie, commentbile, performed 7 Tack pemed we creativecommons Purchased scommes shoes of home bac... he held fordes, for 525 persone My Puchated 5.00 Str How di 1082.ee www.veoh.com Arabe Obecome the per te poche problemlery converted intoccer Costed in the market and receiving 3.0 plus 50 Obtained a second by your bestanddele No. 51.521 at the end of each med. The fine payment was unde cu December 31. Niet de December 3,515587 praleidwide electured the sul dividend on the preferred states tener under oudon December Suniel CRES. RESU 522,400 and paid dividel, 1. The file [RES 31 Sonial interest is recentes Inc. sonry L.222. The bande si el interne den the bond payable ce domy 1, 2002. The parallel te brenda de ined when the market interest rate 1 The DevelopmVTOCI $ 30 min Question Part Score Prepare the statement of comprehensive income for Sunland. For the purposes of this question or the income sax on other comprehensive income and accumulated other comprehensive income Rounderstood places, eg. 5,275.) Prepare the statement of changes in shareholders' equity for Sunland. For the purposes of this question or the income tax on other comprehensive income Enter negative amounts using either a negative preceding the numberg-45 orrentheses (45) Round answers to decimal places, 275) SUNLAND CORPORATION StateChanges in Sharkers' Equity Searded December 31,22131.2 de December Preferred Skin Care Hoding Combo Total Halence, 1,1 5 ladha Proses ved Che dividende Compie come Balance, Deber 31, 201 1:11 Sunland Corporation til balance at December 31, 2021, is presented below SUNLAND CORPORATION Trial Balance tember 31, 2021 See Arch Allowance for al $250 Immo IVIOCI Land Acculated depreciatice-building Acable Bademy 2011 Come shores, unlimited number of no por valestined, 1000 Retained ning Acculadoder comprchensive income Sale Toul All transactions and adjustments for 2021 have been recorded and reported in the beaches described below and .200 prefered shees fe25.000 a 10.000.52cie, commentbile, performed 7 Tack pemed we creativecommons Purchased scommes shoes of home bac... he held fordes, for 525 persone My Puchated 5.00 Str How di 1082.ee www.veoh.com Arabe Obecome the per te poche problemlery converted intoccer Costed in the market and receiving 3.0 plus 50 Obtained a second by your bestanddele No. 51.521 at the end of each med. The fine payment was unde cu December 31. Niet de December 3,515587 praleidwide electured the sul dividend on the preferred states tener under oudon December Suniel CRES. RESU 522,400 and paid dividel, 1. The file [RES 31 Sonial interest is recentes Inc. sonry L.222. The bande si el interne den the bond payable ce domy 1, 2002. The parallel te brenda de ined when the market interest rate 1 The DevelopmVTOCI $ 30 min Question Part Score Prepare the statement of comprehensive income for Sunland. For the purposes of this question or the income sax on other comprehensive income and accumulated other comprehensive income Rounderstood places, eg. 5,275.) Prepare the statement of changes in shareholders' equity for Sunland. For the purposes of this question or the income tax on other comprehensive income Enter negative amounts using either a negative preceding the numberg-45 orrentheses (45) Round answers to decimal places, 275) SUNLAND CORPORATION StateChanges in Sharkers' Equity Searded December 31,22131.2 de December Preferred Skin Care Hoding Combo Total Halence, 1,1 5 ladha Proses ved Che dividende Compie come Balance, Deber 31, 201

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