Quigley Corporation’s trial balance at December 31, 2014, is presented below. All 2014 transactions have been recorded except for the items described below.
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Debit
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Credit
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Cash
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$ 23,000
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Accounts Receivable
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51,000
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Inventory
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22,700
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Land
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65,000
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Buildings
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95,000
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Equipment
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40,000
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Allowance for Doubtful Accounts
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$ 450
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Accumulated Depreciation—Buildings
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30,000
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Accumulated Depreciation—Equipment
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14,400
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Accounts Payable
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19,300
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Interest Payable
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-0-
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Dividends Payable
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-0-
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Unearned Rent Revenue
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8,000
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Bonds Payable (10%)
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50,000
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Common Stock ($10 par)
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30,000
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Paid-in Capital in Excess of Par—Common Stock
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6,000
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Preferred Stock ($20 par)
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-0-
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Paid-in Capital in Excess of Par—Preferred Stock
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-0-
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Retained Earnings
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75,050
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Treasury Stock
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-0-
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Cash Dividends
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-0-
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Sales Revenue
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570,000
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Rent Revenue
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-0-
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Bad Debt Expense
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-0-
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Interest Expense
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2,500
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Cost of Goods Sold
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400,000
|
|
Depreciation Expense
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-0-
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|
Other Operating Expenses
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39,000
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|
Salaries and Wages Expense
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65,000
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Total
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$803,200
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$803,200
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Unrecorded transactions
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1.
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On January 1, 2014, Quigley issued 1,000 shares of $20 par, 6% preferred stock for $22,000.
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2.
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On January 1, 2014, Quigley also issued 1,000 shares of common stock for $23,000.
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3.
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Quigley reacquired 300 shares of its common stock on July 1, 2014, for $49 per share.
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4.
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On December 31, 2014, Quigley declared the annual preferred stock dividend and a $1.50 per share dividend on the outstanding common stock, all payable on January 15, 2015.
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5.
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Quigley estimates that uncollectible accounts receivable at year-end is $5,100.
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6.
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The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,000.
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7.
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The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,000.
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8.
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The unearned rent was collected on October 1, 2014. It was receipt of 4 months’ rent in advance (October 1, 2014 through January 31, 2015).
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9.
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The 10% bonds payable pay interest every January 1 and July 1. The interest for the 6 months ended December 31, 2014, has not been paid or recorded.
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Instructions
(Ignore income taxes.)
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(a)
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Prepare journal entries for the transactions listed above.
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(b)
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Prepare an updated December 31, 2014, trial balance, reflecting the unrecorded transactions.
(b) Total $868,700
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(c)
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Prepare a multiple-step income statement for the year ending December 31, 2014.
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(d)
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Prepare a retained earnings statement for the year ending December 31, 2014.
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(e)
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Prepare a classified balance sheet as of December 31, 2014.
(e) Total assets $270,900
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comprehensive problem was first posted on August 31, 2020 at 3:58 pm.
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