River’s Edge Canoe & Kayak is a merchandising business in Wyoming. The partial chart of accounts follows:

$$\begin{array}{ll} \text{General Ledger} & \text{ }\\ \text{101 Cash in Bank} & \text{401 Sales}\\ \text{115 Accounts Receivable} & \text{405 Sales Discounts}\\ \text{135 Supplies} & \text{410 Sales Returns and Allowances}\\ \text{215 Sales Tax Payable} & \text{ }\\ \end{array}$$

$$\begin{array}{ll} \text{Accounts Receivable Subsidiary Ledger} & \text{ }\\ \text{ADV Adventure River Tours} & \text{WILD Wildwood Resorts}\\ \text{DRA Drake, Paul} & \text{WU Wu, Kim}\\ \end{array}$$

Record January transactions on page 10 of the general journal.

$$\begin{array}{ll} \text{Date} & \text{Transactions}\\ \text{Jan. 1} & \text{Sold \$2,000 in merchandise on account to Wildwood Resorts,}\\ \text{ } & \text{a tax-exempt agency, credit terms 3/15, n/30, Sales Slip 103.}\\ \text{5} & \text{Granted Wildwood Resorts a \$150 credit allowance for}\\ \text{ } & \text{defective merchandise, Credit Memorandum 33.}\\ \text{8} & \text{Received \$485 from Adventure River Tours for \$500 in}\\ \text{ } & \text{merchandise sold to it on Dec. 27 less a $3\\\%$ cash discount of }\\ \text{ } & \text{\$15, Receipt 96.}\\ \text{10} & \text{Sold \$500 in merchandise plus a 5\\\% sales tax of \$25 to Paul}\\ \text{ } & \text{Drake on account, credit terms 3/15, n/30, Sales Slip 104.}\\ \text{12} & \text{Received a check for \$1,794.50 from Wildwood Resorts on}\\ \text{ } & \text{account (\$1,850 less a 3\\\% cash discount of \$55.50), Receipt 97.}\\ \text{15} & \text{Cash sales were \$3,500 plus sales tax of \$175, Tape 22.}\\ \text{15} & \text{Bankcard sales amounted to \$4,000 plus sales tax of \$200,}\\ \text{ } & \text{Tape 22.}\\ \text{20} & \text{Sold to Adventure River Tours \$75 in supplies. Cash received}\\ \text{ } & \text{recorded on Receipt 98.}\\ \text{22} & \text{Granted Kim Wu \$63 credit for \$60 in damaged merchandise }\\ \text{ } & \text{sold to her last month and 5\\\% sales tax of \$3 on the}\\ \text{ } & \text{merchandise, Credit Memorandum 34.}\\ \text{25} & \text{Paul Drake sent a check for \$510 in payment of his account.}\\ \text{ } & \text{The account balance was \$525 (\$500 in merchandise and}\\ \text{ } & \text{\$25 sales tax). He took a 3\\\% cash discount of \$15 on the }\\ \text{ } & \text{merchandise, Receipt 99.}\\ \end{array}$$

Compute the amount of cash that would have been collected in January if customers had not taken any cash discounts.

Use the tables for federal income tax (FIT), use the Social Security tax rate of 6.2%, and the Medicare tax rate of 1.45%. For the FIT information, (S,1) means "single, one allowance" and (M,3) means "married, 3 allowances." The Goldstone Swimming Complex employs students in the summer. Goldstone pays a standard hourly rate of $12.50. The deductions are federal income tax, Social Security, Medicare, and city income tax (CIT) of 1.5$

$$\scriptscriptstyle\begin{array}{|l|l|l|l|l|l|l|l|l|l|} \hline \text{Employee } & \text{Fit } & \text{Hours } & \text{Gross } & \text{ FIT} & \text{ Social} & \text{ Medicare} & \text{CIT } & \text{Total } & \text{Net} \\ \text{ } & \text{ Info.} & \text{Worked } & \text{ Pay} & \text{ } & \text{Seciruty } & \text{ } & \text{ } & \text{ Deduction} & \text{Pay} \\ \hline \text { Banks } & \text{S, 1} & 24 & \text { a. } & \text { b. } & \text { c. } & \text { d. } & \text { e. } & \text { f. } & \text { g. } \\ \hline \text { Drake } & \text{S, 0} & 34 & \text { a. } & \text { b. } & \text { c. } & \text { d. } & \text { e. } & \text { f. } & \text { g. } \\ \hline \text { Faust } & \text{S, 1} & 36 & \text { a. } & \text { b. } & \text { c. } & \text { d. } & \text { e. } & \text { f. } & \text { g. } \\ \hline \text { Harakis } & \text{S, 0} & 38 & \text { a. } & \text { b. } & \text { c. } & \text { d. } & \text { e. } & \text { f. } & \text { g. } \\ \hline \text { Kendrick } & \text{S, 0} & 36 & \text { a. } & \text { b. } & \text { c. } & \text { d. } & \text { e. } & \text { f. } & \text { g. } \\ \hline \text { Reese } & \text{S, 1} & 38 & \text { a. } & \text { b. } & \text { c. } & \text { d. } & \text { e. } & \text { f. } & \text { g. } \\ \hline \text { Segura } & \text{S, 0} & 30 & \text { a. } & \text { b. } & \text { c. } & \text { d. } & \text { e. } & \text { f. } & \text { g. } \\ \hline \text { Total } & \text{} & & \text { a. } & \text { b. } & \text { c. } & \text { d. } & \text { e. } & \text { f. } & \text { g. } \\ \hline \end{array}$$

$

River’s Edge Canoe & Kayak is a retail merchandising business located in Jackson Hole, Wyoming. The beginning balances of the accounts needed to complete this problem are opened in your working papers. In your working papers: 1. Record the transactions on page 19 of the cash payments journal. 2. Post the individual amounts in the Accounts Payable Credit column on a daily basis to the creditors’ accounts. 3. Post the individual amounts in the General Debit and Credit columns on the date the transaction occurred. 4. Foot, prove, total, and rule the cash payments journal. 5. Post the column totals at the end of the month. 6. Prepare a schedule of accounts payable. 7. Prove cash at the end of the month. The beginning Cash in Bank balance was $8,000; cash receipts were$7,000; and the ending check stub balance is $8,402.$

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{July 1} & \text{Issued Check 1405 for $\$ 1,372$ to North American Waterways Suppliers in payment on account of $\$ 1,400$ invoice less a 2$\\\%$ discount.}\\ \text{3} & \text{Received insurance premium statement from Rocky Mountain Insurance Company. Issued Check 1406 for $\$ 1,800$.}\\ \text{5} & \text{Issued Check 1407 to Pacific Wholesalers for $\$ 500$ to apply on account.}\\ \text{8} & \text{Received an invoice for $\$ 300$ from Jackson News for advertising. Issued Check 1408.}\\ \text{12} & \text{Issued Check 1409 for $\$ 686$ to Trailhead Canoes in payment on account of $\$ 700$ invoice less a 2$\\\%$ discount.}\\ \text{15} & \text{Issued Check 1410 for $\$ 200$ to Rollins Plumbing Service in full payment of the amount owed on account. }\\ \text{18} & \text{Issued Check 1411 for $\$ 75$ to Ben Jacobs for completing odd jobs in the store (Miscellaneous Expense).}\\ \text{20} & \text{Purchased $\$ 90$ in supplies from StoreMart Supply by issuing Check $1412 .$}\\ \text{22} & \text{Paid StoreMart Supply $\$ 400$ to apply on account, Check 1413.}\\ \text{24} & \text{Issued Check $1414, \$ 700$ to Office Max, store equipment.}\\ \text{25} & \text{Paid Mohican Falls Kayak Wholesalers $\$ 200$ to apply on account, Check $1415 .$}\\ \text{26} & \text{Issued Check 1416 to Office Max, $\$ 150$ to apply on account.}\\ \text{28} & \text{Paid transportation charges of $\$ 125$ to Stein's Trucking, Check 1417.}\\ \end{array}$$

$ Identify the amount that River’s Edge owes its creditors at month end.

Buzz Newsstand had the following sales and cash receipt transactions for May. In your working papers, the accounts receivable subsidiary ledger and general ledger accounts have been opened with current balances. 1. Record the sales and cash receipts for May on page 11 of the sales journal and page 11 of the cash receipts journal. 2. Post to the customer accounts in the accounts receivable subsidiary ledger on a daily basis. 3. Post from the General Credit column of the cash receipts journal on a daily basis. 4. Foot, prove, total, and rule both journals. 5. Post the column totals of the sales journal to the general ledger accounts named in the column headings. 6. Post the column totals from the cash receipts journal to the general ledger accounts named in the column headings. 7. Prepare a schedule of accounts receivable.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{May 1} & \text{Sold $\$ 300$ in merchandise plus 6$\\\%$ sales tax of $\$ 18$ on account to Ilya Bodonski, Sales Slip 170.}\\ \text{3} & \text{Received $\$ 490$ from Katz Properties in payment of its $\$ 500$ account balance less a 2$\\\%$ discount of $\$ 10,$ Receipt $145 .$ }\\ \text{5} & \text{As a favor, sold $\$ 60$ in supplies to Straka Stores, received cash, Receipt $146.$}\\ \text{7} & \text{Rothwell Management Inc. sent us a check for $\$ 294$ in payment of its $\$ 300$ account balance less a $\$ 6$ cash discount, Receipt $147.$}\\ \text{9} & \text{Sold $\$ 100$ in merchandise plus $\$ 6$ sales tax on account to Saba Nadal, Sales Slip $171 .$}\\ \text{10} & \text{Sold $\$ 600$ in merchandise plus $\$ 36$ sales tax on account to Java Shops Inc., terms $2 / 10, \mathrm{n} / 30,$ Sales Slip $172 .$}\\ \text{12} & \text{Sold $\$ 50$ in merchandise plus $\$ 3$ sales tax on account to Lee Adkins, Sales Slip $173 .$}\\ \text{15} & \text{Received a check for $\$ 196$ from Rolling Hills Pharmacies in payment of its $\$ 200$ account less a 2$\\\%$ cash discount of $\$ 4$, Receipt 148.}\\ \text{15} & \text{Cash sales were $\$ 2,400$ plus $\$ 144$ sales tax, Tape $33 .$}\\ \text{15} & \text{Bankcard sales totaled $\$ 2,000$ plus sales tax of $\$ 120,$ Tape 33.}\\ \text{18} & \text{Sold $\$ 1,000$ in merchandise plus sales tax of $\$ 60$ on account to Katz Properties, terms $2 / 10, \mathrm{n} / 30,$ Sales Slip $174 .$}\\ \text{20} & \text{Received $\$ 100$ from Ilya Bodonski to apply on her account, Receipt $149 .$}\\ \text{22} & \text{Sold $\$ 800$ in merchandise plus $\$ 48$ sales tax on account to Rothwell Management Inc., terms $2 / 10, \mathrm{n} / 30,$ Sales Slip $175 .$}\\ \text{23} & \text{Lee Adkins sent us a check for $\$ 53$ in payment of his account, Receipt $150 .$}\\ \text{24} & \text{Received a $\$ 106$ check from Saba Nadal to apply on account, Receipt $151 .$}\\ \text{26} & \text{Java Shops Inc. sent us a check for $\$ 200$ to apply on account, Receipt $152 .$}\\ \text{27} & \text{Sold $\$ 200$ in merchandise plus sales tax of $\$ 12$ on account to Lee Adkins, Sales Slip $176 .$ }\\ \text{28} & \text{Received $\$ 75$ from the sale of excess store equipment, Receipt $153 .$}\\ \text{30} & \text{Cash sales totaled $\$ 2,600$ plus $\$ 156$ sales tax, Tape $34 .$}\\ \text{30} & \text{Bankcard sales were $\$ 2,200$ plus sales tax of $\$ 132,$ Tape 34.}\\ \end{array}$$

Calculate the percent of sales discounts given in May to total May sales.

Quigley Corporation’s trial balance at December 31, 2017, is presented below. All 2017 transactions have been recorded except for the items described below.

Unrecorded transactions and adjustments:

1. On January 1, 2017, Quigley issued 1,000 shares of$20 par, 6% preferred stock for $22,000.
2. On January 1, 2017, Quigley also issued 1,000 shares of common stock for$23,000.
3. Quigley reacquired 300 shares of its common stock on July 1, 2017, for $49 per share.
4. On December 31, 2017, Quigley declared the annual cash dividend on the preferred stock and a$1.50 per share dividend on the outstanding common stock, all payable on January 15, 2018.
5. Quigley 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, 2017. It was the receipt of 4 months’ rent in advance (October 1, 2017 through January 31, 2018).
9. The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2017, has not been paid or recorded.

Instructions (Ignore income taxes.) (c) Prepare a multiple-step income statement for the year ending December 31, 2017.

Buzz Newsstand had the following transactions for the month of January.

$$\begin{matrix} \text{General Ledger} & \text{ }\\ \hline \text{101 Cash in Bank} & \text{401 Sales}\\ \text{115 Accounts Receivable} & \text{405 Sales Discounts}\\ \text{135 Supplies} & \text{410 Sales Returns and Allowances}\\ \text{215 Sales Tax Payable} & \text{ }\\ \end{matrix}$$

Accounts Receivable Subsidiary Ledger

$$\begin{matrix} \text{ADK Adkins, Lee} & \text{NAD Nadal, Saba}\\ \text{JAV Java Shops Inc.} & \text{ROL Rolling Hills Pharmacies}\\ \end{matrix}$$

1. Record the transactions on page 9 of the general journal. 2. Post each transaction to the appropriate general ledger and accounts receivable subsidiary ledger accounts. A partial general ledger and accounts receivable subsidiary ledger are included in the working papers. The current account balances are recorded in the accounts.

$$\begin{array}{rl} \text{Date} & \text{Transactions}\\ \hline \text{Jan. 1} & \text{Lee Adkins returned $\$ 200$ in damaged merchandise purchased on account last month, issued Credit Memorandum 10 for $\$ 212(\$ 200$ in merchandise plus $6 \\\%$ sales tax of $\$ 12).$}\\ \text{3} & \text{Received a check from Rolling Hills Pharmacies for $\$ 2,256.62$ in payment of its account of $\$ 2,300$ less a 2$\\\%$ cash discount of $\$ 43.38$ , Receipt $75 .$}\\ \text{7} & \text{Gave credit to Saba Nadal for the return of $\$ 300$ in merchandise sold to him on account, plus sales tax of $\$ 18 .$ Issued Credit Memorandum 11 for $\$ 318$.}\\ \text{10} & \text{Java Shops Inc. sent a check for $\$ 1471.70$ in payment of its account of $\$ 1,500$ less a 2$\\\%$ cash discount of $\$ 28.30$, Receipt 76.}\\ \text{15} & \text{Cash sales were $\$ 2,500$ plus $\$ 150$ in sales tax, Tape 25.}\\ \text{15} & \text{Bankcard sales were $\$ 2,000$ plus $\$ 120$ in sales tax, Tape 25.}\\ \text{20} & \text{Janson Lee, a neighboring store, needed supplies urgently. Sold it $\$ 40$ in supplies and received cash from the sale, Receipt 77.}\\ \text{25} & \text{Received a check for $\$ 636$ from Lee Adkins on account, Receipt 78.}\\ \text{31} & \text{Sold $\$ 3,000$ in merchandise plus sales tax of $\$ 180$ on account to Rolling Hills Pharmacies, Sales Slip 114.}\\ \end{array}$$

Calculate the net sales for January, which is Sales less Sales Discounts and Sales Returns and Allowances.

Presented below is the trial balance of Scott Butler Corporation at December 31, 2020.

$$\begin{array} {lrr}\hline \textbf{}&\textbf{Debit}&\textbf{Credit}\\ \hline \text{Cash}\hspace{40pt}& \text{\$\hspace{10pt}197,000}&\\ \text{Sales Revenue}\hspace{52pt}&& \text{\$\hspace{5pt}8,100,000} &\\ \text{Debt Investments (trading) (at cost, \$145,000)}\hspace{40pt}& \text{153,000}&\\ \text{Cost of Goods Sold}\hspace{40pt}& \text{4,800,000}&\\ \text{Debt Investments (long-term) }\hspace{52pt}& \text{299,000} &\\ \text{Equity Investments (long-term)}\hspace{65pt} & \text{277,000}&\\ \text{Notes Payable (short-term)}\hspace{65pt} && \text{90,000}&\\ \text{Accounts Payable}\hspace{65pt} && \text{455,000}&\\ \text{Selling Expenses}\hspace{60pt}& \text{2,000,000}&\\ \text{Investment Revenue}\hspace{60pt}&& \text{63,000}&\\ \text{Land}\hspace{71pt}&\ \text{260,000}&\\ \text{Buildings}\hspace{50pt}&\ \text{1,040,000}&\\ \text{Dividends Payable}\hspace{50pt}&&\ \text{136,000}&\\ \text{Accrued Liabilities}\hspace{50pt}&&\ \text{96,000}&\\ \text{Accounts Receivable}\hspace{50pt}&\ \text{435,000}&\\ \text{Accumulated Depreciation-Buildings}\hspace{50pt}&&\ \text{152,000}&\\ \text{Allowance for Doubtful Accounts}\hspace{50pt}&&\ \text{25,000}&\\ \text{Administrative Expenses }\hspace{40pt}& \text{900,000}&\\ \text{Interest Expense}\hspace{52pt}& \text{211,000} &\\ \text{Inventory}\hspace{65pt} & \text{597,000}&\\ \text{Gain}\hspace{65pt} && \text{80,000}&\\ \text{Notes Payable (long-term)}\hspace{65pt} && \text{900,000}&\\ \text{Equipment}\hspace{60pt}& \text{600,000}&\\ \text{Bonds Payable}\hspace{60pt}&& \text{1,000,000}&\\ \text{Accumulated Depreciation-Equipment}\hspace{71pt}&&\ \text{60,000}&\\ \text{Franchises}\hspace{50pt}&\ \text{160,000}&\\ \text{Common Stock (\$5 par)}\hspace{50pt}&&\ \text{1,000,000}&\\ \text{Treasury Stock}\hspace{50pt}&\ \text{191,000}&\\ \text{Patents}\hspace{50pt}&\ \text{195,000}&\\ \text{Retained Earnings}\hspace{50pt}&&\ \text{78,000}&\\ \text{Paid-in Capital in Excess of Par}\hspace{50pt}&&\ \text{80,000}&\\ \hline \text{}\hspace{50pt}&\textbf{\$\hspace{5pt}12,315,000}&\ \textbf{\$\hspace{5pt}12,315,000} \\\hline \hline \end{array}$$

Prepare a balance sheet at December 31, 2020, for Scott Butler Corporation. (Ignore income taxes.)

The adjusted trial balance of East- wood Company and other related information for the year 2020 are presented as follows.

$$\begin{array}{c} \hline \hspace{130pt}\textbf{Eastwood Company}\hspace{130pt}\\ \textbf{Adjusted Trial Balance}\\ \textbf{December 31, 2020}\\ \hline \end{array}$$

$$\begin{array} {lrr} \textbf{}&\textbf{Debit}&\textbf{Credit}\\ \hline \text{Cash}\hspace{40pt}& \text{\$\hspace{15pt}41,000}&\\ \text{Accounts Receivable}\hspace{52pt} & \text{163,500} &\\ \text{Allowance for Doubtful Accounts}\hspace{52pt}&& \text{\$\hspace{20pt}8,700} &\\ \text{Prepaid Insurance}\hspace{40pt}& \text{5,900}&\\ \text{Inventory}\hspace{40pt}& \text{208,500}&\\ \text{Equity Investments (long-term)}\hspace{52pt}& \text{339,000} &\\ \text{Land}\hspace{65pt} & \text{85,000}&\\ \text{Construction in Process (building)}\hspace{65pt} & \text{124,000}&\\ \text{Patents}\hspace{65pt} & \text{36,000}&\\ \text{Equipment}\hspace{40pt}& \text{400,000}&\\ \text{Accumulated Depreciation-Equipment}\hspace{52pt}&& \text{240,000} &\\ \text{Discount on Bonds Payable}\hspace{60pt}& \text{20,000}&\\ \text{Accounts Payable}\hspace{60pt}&& \text{148,000}&\\ \text{Accrued Liabilities}\hspace{71pt}&&\ \text{49,200}&\\ \text{Notes Payable}\hspace{50pt}&&\ \text{94,000}&\\ \text{Bonds Payable}\hspace{50pt}&&\ \text{200,000}&\\ \text{Common Stock}\hspace{50pt}&&\ \text{500,000}&\\ \text{Paid-in Capital in Excess of Par-Common Stock}\hspace{50pt}&&\ \text{45,000}&\\ \text{Retained Earnings}\hspace{50pt}&&\ \text{138,000}&\\ \hline \text{}\hspace{50pt}&\textbf{\$\hspace{5pt}1,422,900} &\ \textbf{\$\hspace{5pt}1,422,900} \\\hline \hline \end{array}$$

Additional information:

1. The LIFO method of inventory value is used.

2. The cost and fair value of the long-term investments that consist of stocks (with ownership less than 20% of total shares) are the same.

3. The amount of the Construction in Progress account represents the costs expended to date on a building in the process of construction. (The company rents factory space at the present time.) The land on which the building is being constructed cost $85,000, as shown in the trial balance.

4. The patents were purchased by the company at a cost of$40,000 and are being amortized on a straight-line basis.

5. Of the discount on bonds payable, $2,000 will be amortized in 2021.

6. The notes payable represent bank loans that are secured by long-term investments carried at$120,000. These bank loans are due in 2021.

7. The bonds payable bear interest at 8% payable every December 31, and are due January 1, 2031.

8. 600,000 shares of common stock of a par value of $1 were authorized, of which 500,000 shares were issued and outstanding.

Prepare a balance sheet as of December 31, 2020, so that all important information is fully disclosed.

The following are the trial balance and the other information related to Perez Consulting Engineers.

$$\begin{array}{ c } \hspace{15pt}\textbf{Perez Consulting Engineers}&\\ \hspace{15pt}\textbf{Trial Balance}&\\ \hspace{15pt}\textbf{December 31, 2020} \end{array}\\$$

$$\begin{array} {lrr}\hline \textbf{}&\textbf{Debit}&\textbf{Credit}\\ \hline \text{Cash}\hspace{40pt}& \text{\$29,500}&\\ \text{Accounts Receivable}\hspace{52pt} & \text{49,600} &\\ \text{Allowance for Doubtful Accounts}\hspace{40pt}&& \text{\$750}&\\ \text{Supplies}\hspace{40pt}& \text{1,960}&\\ \text{Prepaid Insurance}\hspace{40pt}& \text{1,100}&\\ \text{Equipment}\hspace{52pt}& \text{25,000} &\\ \text{Accumulated Depreciation-Equipment}\hspace{65pt} && \text{6,250}&\\ \text{Notes Payable}\hspace{65pt} && \text{7,200}&\\ \text{Common Stock}\hspace{60pt}&& \text{10,000}&\\ \text{Retained Earnings}\hspace{60pt}&& \text{25,010}&\\ \text{Service Revenue}\hspace{71pt}&&\ \text{100,000}&\\ \text{Rent Expense}\hspace{50pt}&\ \text{9,750}&\\ \text{Salaries and Wages Expense}\hspace{50pt}&\ \text{30,500}&\\ \text{Utilities Expenses}\hspace{50pt}&\ \text{1,080}&\\ \text{Office Expense}\hspace{50pt}&\ \text{720}&\\\hline \text{}\hspace{50pt}&\textbf{\$149,210} &\ \textbf{\$149,210} \\\hline \hline \end{array}$$

1. Fees received in advance from clients $6,000, which were recorded as revenue.

2. Services performed for clients that were not recorded by December 31,$4,900.

3. Bad debt expense for the year is $1,430.

4. Insurance expired during the year$480.

5. Equipment is being depreciated at 10% per year.

6. Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2020.

7. Rent of the building is$750 per month. The rent for 2020 has been paid, as has that for January 2021. and recorded as Rent Expense.

8. Office salaries and wages earned but unpaid December 31, 2020, $2,510.

Instructions

a. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2020. (Omit explanations.)

b. Prepare an income statement for 2020, a retained earnings statement, and a classified balance sheet. Perez paid a$17,000 cash dividend during the year (recorded in Retained Earnings).

Quigley Corporation’s trial balance at December 31, 2017, is presented below. All 2017 transactions have been recorded except for the items described below.

Unrecorded transactions and adjustments:

1. On January 1, 2017, Quigley issued 1,000 shares of$20 par, 6% preferred stock for $22,000.
2. On January 1, 2017, Quigley also issued 1,000 shares of common stock for$23,000.
3. Quigley reacquired 300 shares of its common stock on July 1, 2017, for $49 per share.
4. On December 31, 2017, Quigley declared the annual cash dividend on the preferred stock and a$1.50 per share dividend on the outstanding common stock, all payable on January 15, 2018.
5. Quigley 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, 2017. It was the receipt of 4 months’ rent in advance (October 1, 2017 through January 31, 2018).
9. The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2017, has not been paid or recorded.

Instructions (Ignore income taxes.) (b) Prepare an updated December 31, 2017, trial balance, refl ecting the journal entries in (a).

Imagine you are a woman in the Tai Ping army during the Tai Ping Rebellion. Write a page in your journal about your experiences and why you want the rebellion to succeed.

Which of the following problems CANNOT be solved using the number sentence below?

$$15-8=\fbox{\phantom{1}}$$

A. Siu Ping had $15$ trading cards. She gave $8$ to Jim. How many does she have now?
B. Siu Ping needs $15$ more trading cards than Jim has. Jim has $8$. How many does Siu Ping need?
C. Siu Ping has $15$ trading cards. Jim has $8$. How many more does Siu Ping have than Jim?
D. Siu Ping needs $15$ trading cards. She has $8$. How many more does she need?

Suppose you created a software package, sold the business, and now are ready to invest in a resort property. Several locations look promising: Monterrey, California; Durango, Colorado; and Mackinac Island, Michigan. Each place has its appeal, but Durango wins out. Two small resorts are available in Durango. The property owners provide the following data:

$$\begin{array}{lcc} \textbf{GOLD RUSH RESORTS \& MOUNTAIN HIDEAWAY}\\ \textbf{Balance Sheets}\\ \text{December 31, 2013}\\ \hline & \textbf{Gold Rush Resorts} & \text{Mountain Hideaway} \\ \hline \text{ Cash} & \$ 31,000 & \$ 63,000 \\ \text{Accounts receivable} & 20,000 & 18,000 \\ \text{Inventory} & 64,000 & 70,000 \\ \text{Land} & 270,000 & 669,000 \\ \text{Buildings} & \$1,200,000 & \$1,500,000 \\ \text{Accumulated depreciation–buildings} & (20,000) & (100,000) \\ \text{Furniture} & 750,000 & 900,000 \\ \text{Accumulated depreciation-furniture} & (75,000)& (180,000) \\ \hline \text{Total assets} & \$ 2,240,000 & \$ 2,940,000 \\ \hline \hline \text{Total liabilities} & \$ 1,300,000 & \$ 1,000,000 \\ & & \\ \text{Owner's equity} & 940,000 & 1,940,000 \\ \hline \text{Total liabilities and owner's equity} & \$ 2,240,000 & \$ 2,940,000 \\ \hline \hline \end{array}$$

Income: Income statements for the last year report net income of $500,000 for Gold Rush Resorts and$400,000 for Mountain Hideaway. Inventories: Gold Rush Resorts uses the FIFO inventory method, and Mountain Hideaway uses LIFO. If Gold Rush had used LIFO, its ending inventory would have been $7,000 lower. Plant Assets: Gold Rush Resorts uses the straight-line depreciation method and an estimated useful life of 40 years for buildings and 10 years for furniture. Estimated residual values are$400,000 for buildings and $0 for furniture. Gold Rush’s buildings are one-year old. Annual depreciation expense for the buildings is$20,000 and $75,000 per year on the furniture. Mountain Hideaway uses the double-declining-balance method and depreciates buildings over 30 years. The furniture, also one-year old, is being depreciated over 10 years. First year depreciation expense for the buildings is$100,000 and $180,000 for the furniture. Accounts Receivable: Gold Rush Resorts uses the direct write-off method for uncollectible receivables. Mountain Hideaway uses the allowance method. The Gold Rush owner estimates that$2,000 of the company’s receivables are doubtful. Mountain Hideaway receivables are already reported at net realizable value. Requirements

1. To compare the two resorts, convert Gold Rush Resorts’ net income to the accounting methods and the estimated useful lives used by Mountain Hideaway.
2. Compare the two resorts’ net incomes after you have revised Gold Rush’s figures. Which resort looked better at the outset? Which looks better when they are placed on equal footing?