Nordham Corporation?s trial balance at December 31, 2012, is presented below. All 2012 transactions have been recorded except for the items described below.

Unrecorded transactions

1. On January 1, 2012, Nordham issued 1,000 shares of $20 par, 6% preferred stock for $22,000.

2. On January 1, 2012, Nordham also issued 1,000 shares of common stock for $23,000.

3. Nordham reacquired 300 shares of its common stock on July 1, 2012, for $49 per share.

4. On December 31, 2012, Nordham declared the annual preferred stock dividend and a $1.50 per share dividend on the outstanding common stock, all payable on January 15, 2013.

5. Nordham estimates that uncollectible accounts receivable at year-end is $5,100.

6. The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,000.

7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,000.

8. The unearned rent was collected on October 1, 2012. It was receipt of 4 months? rent in advance

(October 1, 2012 through January 31, 2013).

9. The 10% bonds payable pay interest every January 1 and July 1. The interest for the 6 months ended December 31, 2012, has not been paid or recorded.

Instructions

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

(b) Prepare an updated December 31, 2012, trial balance, reflecting the unrecorded transactions.

(c) Prepare a multiple-step income statement for the year ending December 31, 2012.

(d) Prepare a retained earnings statement for the year ending December 31, 2012.

(e) Prepare a classified balance sheet as of December 31, 2012.

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Debit Credit $ 23,000 Cash Accounts Receivable 51,000 Inventory 22,700 Land 65,000 Buildings Equipment 95,000 40,000 Allowance for Doubtful Accounts 450 Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Accounts Payable Interest Payable Dividends Payable 30,000 14.400 19,300 -0- -0- Unearned Rent Revenue 8,000 Bonds Payable (10%) Common Stock ($10 par) Paid-in Capital in Excess of Par-Common Stock Preferred Stock ($20 par) Paid-in Capital in Excess of Par-Preferred Stock Retained Earnings Treasury Stock 50,000 30,000 6,000 -0- -0- 75,050 -0- Cash Dividends -0- Sales Revenue 570,000 Rent Revenue -0- Bad Debts Expense Interest Expense -0- 2,500 Cost of Goods Sold 400,000 Depreciation Expense Other Operating Expenses Salaries and Wages Expense -0- 39,000 65.000 Total $803,200 $803.200