PDQ Corporation's Trial Balance at December 31, 20XX is presented below. All 20XX transactions have been...

 

Transcribed Image Text:

PDQ Corporation's Trial Balance at December 31, 20XX is presented below. All 20XX transactions have been recorded except for the items described on the next page. Debit Credit Cash 121,590 Accounts Receivable 28,789 Inventory 25,540 Debt Investments Land 55,674 Buildings Equipment 215,850 75,120 Allowance for Doubtful Accounts 24 1,077 Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment 63,306 16,048 Accounts Payable Interest Payable Unearned Rent Revenue Dividends Payable Income Tax Payable Bonds Payable Discount on Bonds Payable Common Stock ($2 par) Paid in Capital in Excess of Par-Common Stock Preferred Stock ($60 par) Paid in Capital in Excess of Par-Preferred Stock Retained Earnings 35,278 60,600 29,200 44,580 127,904 Treasury Stock Cash Dividends Sales Revenue 776,068 Rent Revenue Gain on sale of Land Loss on sale of Debt Investments Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense 478,592 73,274 79,632 Total 1,154,061 24 1.154,061 Unrecorded transactions: Round all calculations if necessary to -0- decimals (to the nearest dollar, do not show cents). 1. On January 1, 20XX, PDQ Corp. issued 520 shares of $60 par, 6% preferred stock for $75,810. 2. On January 1, 20XX, PDQ Corp. also issued 5,800 shares of common stock for $42,050. 3. On January 1, 20XX, PDQ Corp. issued $325,000, 6.5%, 8 year bonds when the market rate was 7%. Interest is to be paid annually on each January 1, beginning one year from date of issue. 4. PDQ Corp. reacquired 3,500 shares of its common stock on January 12, 20XX for $12.00 per share. 5. On December 31, 20XX, PDQ Corp. declared the annual preferred dividend plus a $2.75 per share dividend on the outstanding common stock, all payable in cash on January 31 of next year. 6. Bought Debt Investments worth $75,000 for cash. 7. On December 31, 20XX, PDQ Corp. estimates that the total amount of accounts receivable that is uncollectible at year end is $2,700. 8. The building is being depreciated using the straight line method over 25 years. The salvage value is $100,000. 9. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $15,000. 10. Sold the Land for $60,000 cash. 11. The unearned rent was collected on December 1, 20XX. It was receipt of 3 months' rent in advance (December 1 of this year through February 28 of next year). 12. The first cash interest payment on the 6.5% bonds is due January 1 of next year. The annual interest on the bonds for 20XX has not yet been recorded. Use the effective interest method. 13. The PDQ Corporation sold half of the Debt Investments for $30,000 cash. 14. The PDQ Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 24%. The taxes will not be paid until March of next year. PDQ Corporation (а) General Journal Date Account Titles Debit Credit 1. cash $ 75,810.00 preferred stock paid in capital in excess of par - preferred stock (to record issuance of prefered stock) 1-Jan $ 31,200.00 $ 44,610.00 2. cash $ 42,050.00 1-Jan common stock $ 11,600.00 paid in capital in excess of par - common stock (to record issuance of common stock) $ 30,450.00 cash 1-Jandiscount on bonds payable bonds payable (to record sale of bonds) 3. $ 315,297.00 $ 9,703.00 $ 325,000.00 4. treasury stock $ 42,000.00 12-Jan cash $ 42,000.00 (to record purchase of 3500 common shares at $12 each) cash dividends dividends payable (to record 6% preferred dividend and $2.75 per common share dividend) 5. $ 48,347.00 31-Dec 48,347.00 6. debt investment 2$ 75,000.00 cash $ 75,000.00 (to record purchase of debt investment) 7. bad debt expense $ 1.623.00 31-Dec allowance for doubtful accounts $ 1,623.00 (to record estimate of uncollectable accounts) depreciation expense accumulated depreciation - building record 1 year of depreciation of building) 8. $ 4,634.00 $ 4,634.00 depreciation expense accumulated depreciation equipment |(to record 1 year of depreciation of equip) 9. $ 12,024.00 $ 12,024.00 CONTINUED DR CR 10. cash 60,000.00 $ gain on sale of land 4,326.00 land $ 55,674.00 (to record sale of land) 11. unearmed rent revenue 20,200.00 rent revenue $ 20,200.00 (to record decembers rent revenue) interest expense Discount on bonds payable Interest payable (to record interest accrued) 12. $ 22,071.00 $ 946.00 $ 21,125.00 cash loss on sale of debt investment $ 2$ 13. 30,000.00 7,500.00 debt investment $ 37,500.00 (to record sale of half of debt investment) 14. PDQ Corporation's Trial Balance at December 31, 20XX is presented below. All 20XX transactions have been recorded except for the items described on the next page. Debit Credit Cash 121,590 Accounts Receivable 28,789 Inventory 25,540 Debt Investments Land 55,674 Buildings Equipment 215,850 75,120 Allowance for Doubtful Accounts 24 1,077 Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment 63,306 16,048 Accounts Payable Interest Payable Unearned Rent Revenue Dividends Payable Income Tax Payable Bonds Payable Discount on Bonds Payable Common Stock ($2 par) Paid in Capital in Excess of Par-Common Stock Preferred Stock ($60 par) Paid in Capital in Excess of Par-Preferred Stock Retained Earnings 35,278 60,600 29,200 44,580 127,904 Treasury Stock Cash Dividends Sales Revenue 776,068 Rent Revenue Gain on sale of Land Loss on sale of Debt Investments Bad Debt Expense Interest Expense Cost of Goods Sold Depreciation Expense Other Operating Expenses Salaries and Wages Expense Income Tax Expense 478,592 73,274 79,632 Total 1,154,061 24 1.154,061 Unrecorded transactions: Round all calculations if necessary to -0- decimals (to the nearest dollar, do not show cents). 1. On January 1, 20XX, PDQ Corp. issued 520 shares of $60 par, 6% preferred stock for $75,810. 2. On January 1, 20XX, PDQ Corp. also issued 5,800 shares of common stock for $42,050. 3. On January 1, 20XX, PDQ Corp. issued $325,000, 6.5%, 8 year bonds when the market rate was 7%. Interest is to be paid annually on each January 1, beginning one year from date of issue. 4. PDQ Corp. reacquired 3,500 shares of its common stock on January 12, 20XX for $12.00 per share. 5. On December 31, 20XX, PDQ Corp. declared the annual preferred dividend plus a $2.75 per share dividend on the outstanding common stock, all payable in cash on January 31 of next year. 6. Bought Debt Investments worth $75,000 for cash. 7. On December 31, 20XX, PDQ Corp. estimates that the total amount of accounts receivable that is uncollectible at year end is $2,700. 8. The building is being depreciated using the straight line method over 25 years. The salvage value is $100,000. 9. The equipment is being depreciated using the straight line method over 5 years. The salvage value is $15,000. 10. Sold the Land for $60,000 cash. 11. The unearned rent was collected on December 1, 20XX. It was receipt of 3 months' rent in advance (December 1 of this year through February 28 of next year). 12. The first cash interest payment on the 6.5% bonds is due January 1 of next year. The annual interest on the bonds for 20XX has not yet been recorded. Use the effective interest method. 13. The PDQ Corporation sold half of the Debt Investments for $30,000 cash. 14. The PDQ Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 24%. The taxes will not be paid until March of next year. PDQ Corporation (а) General Journal Date Account Titles Debit Credit 1. cash $ 75,810.00 preferred stock paid in capital in excess of par - preferred stock (to record issuance of prefered stock) 1-Jan $ 31,200.00 $ 44,610.00 2. cash $ 42,050.00 1-Jan common stock $ 11,600.00 paid in capital in excess of par - common stock (to record issuance of common stock) $ 30,450.00 cash 1-Jandiscount on bonds payable bonds payable (to record sale of bonds) 3. $ 315,297.00 $ 9,703.00 $ 325,000.00 4. treasury stock $ 42,000.00 12-Jan cash $ 42,000.00 (to record purchase of 3500 common shares at $12 each) cash dividends dividends payable (to record 6% preferred dividend and $2.75 per common share dividend) 5. $ 48,347.00 31-Dec 48,347.00 6. debt investment 2$ 75,000.00 cash $ 75,000.00 (to record purchase of debt investment) 7. bad debt expense $ 1.623.00 31-Dec allowance for doubtful accounts $ 1,623.00 (to record estimate of uncollectable accounts) depreciation expense accumulated depreciation - building record 1 year of depreciation of building) 8. $ 4,634.00 $ 4,634.00 depreciation expense accumulated depreciation equipment |(to record 1 year of depreciation of equip) 9. $ 12,024.00 $ 12,024.00 CONTINUED DR CR 10. cash 60,000.00 $ gain on sale of land 4,326.00 land $ 55,674.00 (to record sale of land) 11. unearmed rent revenue 20,200.00 rent revenue $ 20,200.00 (to record decembers rent revenue) interest expense Discount on bonds payable Interest payable (to record interest accrued) 12. $ 22,071.00 $ 946.00 $ 21,125.00 cash loss on sale of debt investment $ 2$ 13. 30,000.00 7,500.00 debt investment $ 37,500.00 (to record sale of half of debt investment) 14.

Answer rating: 100% (QA)

Microsoft Excel New Microsoft Office Excel Worksheetxlsx A B G K P Q 2 Solution Date Account Titles ... View the full answer