Please help and show work if possible :) Quigley Corporation’s trial balance at
ID: 2416570 • Letter: P
Question
Please help and show work if possible :)
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:
(Ignore income taxes.)
Prepare journal entries for the transactions and adjustment listed above.
Prepare an updated December 31, 2017, trial balance, reflecting the journal entries in part(a).
Prepare a multiple-step income statement for the year ending December 31, 2017. (List other revenues before other expenses.)
Prepare a retained earnings statement for the year ending December 31, 2017. (List items that increase retained earning first.)
Prepare a classified balance sheet as of December 31, 2017. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment. Enter account name only and do not provide descriptive information.)
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
1)
Cash Dr $ 21,000
6% preferred Stock Cr $ 20,000
Paid in Capital excess of par value- preferred stock Cr $ 1,000
2)
Cash Dr $ 26,400
Common stock Cr $ 11,000 ( 1,100 X 10)
Paid in excess Value Cr $ 15,400
3)
Treasury stock Dr $ 11,500
Cash Cr $ 11,500
4)
retained earnings Dr $ 7,050
Dividend payable Cr $ 7,050 ( 1,200 + 5850 ( 4500 X 1.30)
5)
Bad debt expense Dr $ 5,900
Account receivable Cr $ 5,900
6)
Depreciation Dr $ 2,950 ( 93,600 - 5,100 / 30)
Accumulated Depreciation- Building Cr $ 2,950
7)
Depreciation Dr $ 2,970 ( 33,000 - 3,300 / 10)
Accumulated Depreciation - Equipment Cr $ 2,970
8)
Unearned Rent income Dr $ 8,800
rental Income Cr $ 8,800
9)
Interest Expense dr $ 4,400 ( 44,000 X 10%)
Interest Payable Cr $ 4,400
2) Changes in Trail balance rest account will remain same
Note : only these accounts change rest remain same
Please ask other question separately by providing above two solution as part of you question
Particulars Debit Credit 6% preferred stock 20,000 Paid in excess par value- Preferred stock 1,000 Common stock ( 34,000 + 11,000) 45,000 Paid in excess par value - Common Stock ( 6,800+ 15,400) 22,200 Treasury stock 11,500 Dividend payable 7,050 Retained earning ( 73,870 - 7050) 66,820 Bad Debt Expense $ 5,900 Account receivable ( 59,000- 5,900) $ 53,100 Depreciation ( 2,950 + 2,970) $ 5,920 Accumulated Depreciation - Buillding ( 29,500 + 2,950) $ 32,450 Accumulated Depreciation - Equipment ( 13,400 + 2,970) $ 16,370 Rent Income $ 8,800 Unearned rent income ( 8,800 - 8,800) 0 Interest expense $ 4,400 Interest payable $ 4,400 Cash ( 27,500 + 21,000 + 26,400 - 11,500) $ 63,400