Pina Colada Corp.'s balance sheet at December 31, 2024, is presented as follow. PINA COLADA CORP....

    

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Pina Colada Corp.'s balance sheet at December 31, 2024, is presented as follow. PINA COLADA CORP. Balance Sheet December 31, 2024 Cash $41,820 Accounts payable $43,520 Common stock ($10 Accounts receivable 77,350 136,000 par) Allowance for doubtful accounts (2,550) Retained earnings 216,580 Supplies 7,480 Land 68,000 Buildings 241,400 Accumulated depreciation-buildings (37,400) $396,100 $396,100 During 2025, the following transactions occurred. 1. On January 1, Pina issued 2,040 shares of $40 par, 7% preferred stock for $83,640. 2. On January 1, Pina also issued 1,530 shares of the $10 par value common stock for $35,700. 3. Pina performed services for $544,000 on account. 4. On April 1, 2025, Pina collected fees of $61,200 in advance for services to be performed from April 1, 2025, to March 31, 2026. 5. Pina collected $469,200 from customers on account. 6. Pina bought $59,670 of supplies on account. 7. Pina paid $54,740 on accounts payable. 8. Pina reacquired 680 shares of its common stock on June 1 for $28 per share. 9. Paid other operating expenses of $319,940. 10. 11. On December 31, 2025, Pina declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026. An account receivable of $2,890 which originated in 2024 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $10,030 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $5,950 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $17,000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) (a) Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4. Pina Colada Corp.'s balance sheet at December 31, 2024, is presented as follow. PINA COLADA CORP. Balance Sheet December 31, 2024 Cash $41,820 Accounts payable $43,520 Common stock ($10 Accounts receivable 77,350 136,000 par) Allowance for doubtful accounts (2,550) Retained earnings 216,580 Supplies 7,480 Land 68,000 Buildings 241,400 Accumulated depreciation-buildings (37,400) $396,100 $396,100 During 2025, the following transactions occurred. 1. On January 1, Pina issued 2,040 shares of $40 par, 7% preferred stock for $83,640. 2. On January 1, Pina also issued 1,530 shares of the $10 par value common stock for $35,700. 3. Pina performed services for $544,000 on account. 4. On April 1, 2025, Pina collected fees of $61,200 in advance for services to be performed from April 1, 2025, to March 31, 2026. 5. Pina collected $469,200 from customers on account. 6. Pina bought $59,670 of supplies on account. 7. Pina paid $54,740 on accounts payable. 8. Pina reacquired 680 shares of its common stock on June 1 for $28 per share. 9. Paid other operating expenses of $319,940. 10. 11. On December 31, 2025, Pina declared the annual cash dividend on preferred stock and a $1.20 per share dividend on the outstanding common stock, all payable on January 15, 2026. An account receivable of $2,890 which originated in 2024 is written off as uncollectible. Adjustment data: 1. A count of supplies indicates that $10,030 of supplies remain unused at year-end. 2. Recorded revenue from item 4 above. 3. The allowance for doubtful accounts should have a balance of $5,950 at year end. 4. Depreciation is recorded on the building on a straight-line basis based on a 30-year life and a salvage value of $17,000. 5. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.) (a) Prepare journal entries for the transactions listed above and adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. 2. 3. 4.