Unrecorded transactions:

Round all calculations if necessary to -0- decimals (to the nearest dollar, do not show cents).

1. On January 1, 202X, Jolly Corp. issued 520 shares of $60 par, 5% preferred stock for $75,810.

2. On January 1, 20XX, Jolly Corp. also issued 5,800 shares of common stock for $42,050.

3. On January 1, 20XX, Jolly Corp. 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. Jolly Corp. reaquired 3,600 shares of its common stock on January 12, 20XX for $8.00 per share.

5. On December 31, 20XX, Jolly Corp. declared the annual preferred dividend plus a $2.75 per

share dividend on the outstanding common stock, all payable in cash on January 31 of next year.

6. On December 31, 20XX, Jolly Corp. estimates that the total amount of accounts receivable that

is uncollectible at year end is $1,740.

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. Sold the Land for $65,000 cash.

10. Bought Debt Investments worth $170,000 for cash.

11. The unearned rent was collected on December 1, 20XX. It was receipt of 3 months'

rent in advance (December 1, 20XX through February 28 of next year).

12. The first cash interest payment on the 5.5% bonds is due January 1 of next year. The annual

interest on the bonds for 20XX has not yet been recorded. Use the effective interest method.

13. The Jolly Corporation must make an adjusting entry to accrue income tax expense on

(a) Prepare journal entries for the transactions listed above.