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Plankton Corporationâ????s trail balance at

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Plankton Corporationâ????s trail balance at December 31, 2004 is presented;below. All 2004 transactions have been recorded except for the items;number 1 â???? 9 as described below.;Debit Credit;Cash $18,000;Accounts Receivable 51,000;Merchandise Inventory 22,700;Land 65,000;Building 95,000;Equiptment 40,000;Allowance for Doubtful Accts $ 450;Accumlated Depr- Buliding 30,000;Accumlated Depr â???? Equiptment 14,400;Accounts Payable 19,300;Bond Interest Payable -0-;Dividend Payable -0-;Unearned Rent 8,000;Bonds Payable (10%) 50,000;Common Stock ($10 par) 30,000;Paid in capital in excess of Par â???? Common Stock;6,000;Preferred Stock ($20 par) -0-;Paid in Capital in Excess of Par â???? Preferred Stock;-0-;Retained Earnings;75,050;Treasury Stock -0-;Cash Dividend Declared -0-;Sales 550,000;Rent Revenue;-0-;Bad Debts Expense -0-;Bond Interest 2,500;Costs of Goods Sold 385,000;Depriciation Expenese â???? Building -0-;Depriciation Expense â???? Equiptment -0-;Other Operating Expenese 39,000;Salaries Expense 65,00;$783,200 $783,200;Unrecorded transactions;On January 1, 2004 Plankton issued 1,000 shares of $20 par, 6% preferred;stock for $22,000.;On January 1, 2004 Plankton also issued 500 shares of common stock for;$23,000.;Plankton reacquired 300 shares of its common stock on July 1, 2004 fir;$49 per share.;On December 31, 2004 Plankton declared the annual preferred stock;dividend and a $1.50 per share dividend on the outstanding common stock;all payable on January 1, 2005;Plankton estimates that uncollectible accounts receivable at year end is;$5,100.;The building is being depreciated using the straight line method over 30;years. The salvage value is $4,000.;The equipment is being depreciated using the straight line method over;10 years. The salvage value is $4,000;The unearned rent was collected on October 1,2004. It was receipt of 4;months rent in advance (October 1, 2004 through January 31, 2005);The 10% bonds payable pay interest every January 1 and July 1. The;interest for the 6 months ended December 31, 2004 has not been paid or;recorded;Instructions;(Ignore income taxes);Prepare journal enteries for the transactions listed above.;Prepare an updated December 31, 2004 trail balance, reflecting the;unrecorded transactions.;Prepare income statement for the year ending December 31, 2004.;Prepare a statement of retained earnings for the year ending December;31, 2004.;Prepare a classified balance sheet as of December 31, 2004.

 

Paper#26506 | Written in 18-Jul-2015

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