I can’t post each section as a question because I need to verify the answers fir
ID: 2421059 • Letter: I
Question
I can’t post each section as a question because I need to verify the answers first before going on. I have parts of the answers but am very stuck and would appreciate some help. I know it’s very long but I would greatly appreciate it!!
Quigley Corporation’s trial balance at December 31, 2017, is presented below. All 2017 transactions have been recorded except for the items described below.
Debit
Credit
Cash
$27,500
Accounts Receivable
59,000
Inventory
23,400
Land
64,700
Buildings
93,600
Equipment
33,000
Allowance for Doubtful Accounts
$430
Accumulated Depreciation—Buildings
29,500
Accumulated Depreciation—Equipment
13,400
Accounts Payable
19,400
Interest Payable
–0–
Dividends Payable
–0–
Unearned Rent Revenue
8,800
Bonds Payable (10%)
44,000
Common Stock ($10 par)
34,000
Paid-in Capital in Excess of Par—Common Stock
6,800
Preferred Stock ($20 par)
–0–
Paid-in Capital in Excess of Par—Preferred Stock
–0–
Retained Earnings
73,870
Treasury Stock
–0–
Cash Dividends
–0–
Sales Revenue
565,000
Rent Revenue
–0–
Bad Debt Expense
–0–
Interest Expense
–0–
Cost of Goods Sold
391,000
Depreciation Expense
–0–
Other Operating Expenses
38,600
Salaries and Wages Expense
64,400
Total
$795,200
$795,200
Unrecorded transactions and adjustments:
1.
On January 1, 2017, Quigley issued 1,000 shares of $20 par, 6% preferred stock for $21,000.
2.
On January 1, 2017, Quigley also issued 1,100 shares of common stock for $26,400.
3.
Quigley reacquired 250 shares of its common stock on July 1, 2017, for $46 per share.
4.
On December 31, 2017, Quigley declared the annual cash dividend on the preferred stock and a $1.30 per share dividend on the outstanding common stock, all payable on January 15, 2018.
5.
Quigley estimates that uncollectible accounts receivable at year-end is $5,900.
6.
The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,100.
7.
The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $3,300.
8.
The unearned rent was collected on October 1, 2017. It was receipt of 4 months’ rent in advance (October 1, 2017 through January 31, 2018).
9.
The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2017, has not been paid or recorded.
No. Account Titles and Explanation Debit Credit
1.___________________________
_____________________________
_____________________________
2. ___________________________
_____________________________
_____________________________
3. ____________________________
______________________________
4. ____________________________
______________________________
5. ____________________________
______________________________
6. ____________________________
______________________________
7. ____________________________
______________________________
8. ____________________________
______________________________
9. ____________________________
______________________________
Prepare an updated December 31, 2017, trial balance, reflecting the journal entries in part(a).
QUIGLEY CORPORATION
Trail Balance
For the Month Ended December 31, 2017For the Year Ended December 31, 2017December 31, 2017
Debit Credit
1.
2.
3.
4.
5.
6.
7.
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
__________________________________________
Prepare a multiple-step income statement for the year ending December 31, 2017.
Prepare a retained earnings statement for the year ending December 31, 2017.
Prepare a classified balance sheet as of December 31, 2017
Debit
Credit
Cash
$27,500
Accounts Receivable
59,000
Inventory
23,400
Land
64,700
Buildings
93,600
Equipment
33,000
Allowance for Doubtful Accounts
$430
Accumulated Depreciation—Buildings
29,500
Accumulated Depreciation—Equipment
13,400
Accounts Payable
19,400
Interest Payable
–0–
Dividends Payable
–0–
Unearned Rent Revenue
8,800
Bonds Payable (10%)
44,000
Common Stock ($10 par)
34,000
Paid-in Capital in Excess of Par—Common Stock
6,800
Preferred Stock ($20 par)
–0–
Paid-in Capital in Excess of Par—Preferred Stock
–0–
Retained Earnings
73,870
Treasury Stock
–0–
Cash Dividends
–0–
Sales Revenue
565,000
Rent Revenue
–0–
Bad Debt Expense
–0–
Interest Expense
–0–
Cost of Goods Sold
391,000
Depreciation Expense
–0–
Other Operating Expenses
38,600
Salaries and Wages Expense
64,400
Total
$795,200
$795,200
Explanation / Answer
JOURNAL ENTRIES Debit cash 21000 credit preference share capital 20000 Credit paid in extra 1000 debit cash 26400 credit common stock 11000 credit additional capital 15400 Debit treasury stock 11500 credit cash 11500 dividend debit 1200 credit dividend on preffered stock 1200 debit dividend 45630 credit dividend on common stock 45630 debit bad debts 5900 credit bills receivables 5900 depreciation debit 2950 credit depreciation accululation account 2950 debit depreciation on equipment 2970 credit depreciation accumulated 2970 cash debit 8800 credit unearned rent 2200 rent credit rent income 6600 debit interst on bonds 4400 credit intersest payable on bonds 4400 Adjusted Trial Balance Debit Credit Cash $63,400 Accounts Receivable 53,100 Inventory 23,400 Land 64,700 Buildings 93,600 Equipment 33,000 Allowance for Doubtful Accounts $430 Accumulated Depreciation—Buildings 32,450 Accumulated Depreciation—Equipment 16,370 Accounts Payable 19,400 Interest Payable 4400 Dividends Payable 7050 Unearned Rent Revenue 2,200 Bonds Payable (10%) 44,000 Common Stock ($10 par) 45,000 Paid-in Capital in Excess of Par—Common Stock 22,200 Preferred Stock ($20 par) 20000 Paid-in Capital in Excess of Par—Preferred Stock 1000 Retained Earnings 73,870 Treasury Stock 11500 Cash Dividends 7050 Sales Revenue 565,000 Rent Revenue 6600 Bad Debt Expense Interest Expense 4400 Cost of Goods Sold 391,000 Depreciation Expense 5920 Other Operating Expenses 38,600 bad debts 5900 5,900 Salaries and Wages Expense 64,400 Total $859,970 $859,970 Balance sheet Cash $63,400 Allowance for Doubtful Accounts $430 Accounts Receivable 53,100 Accumulated Depreciation—Buildings 32,450 Inventory 23,400 Accumulated Depreciation—Equipment 16,370 Land 64,700 Accounts Payable 19,400 Buildings 93,600 Interest Payable 4400 Equipment 33,000 Dividends Payable Treasury Stock 11500 Unearned Rent Revenue 2,200 Bonds Payable (10%) 44,000 Common Stock ($10 par) 45,000 Paid-in Capital in Excess of Par—Common Stock 22,200 Preferred Stock ($20 par) 20000 Paid-in Capital in Excess of Par—Preferred Stock 1000 Retained Earnings 73,870 Net profit 61,380 Total of Assets $342,700 $342,700 $0 Sales Revenue 565,000 Rent Revenue 6600 Cost of Goods Sold 391,000 Gross profit 180,600 Interest Expense 4400 Depreciation Expense 5920 Other Operating Expenses 38,600 bad debts 5900 Salaries and Wages Expense 64,400 Salaries and Wages Expense Net profit 61,380 Net profit 61380 dividend payable 7050 remaing balance 54330
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