The worksheet of Best Jobs Employment Service follows but is incomplete.

BEST JOBS EMPLOYMENT SERVICES
Worksheet
April 30, 2018
Account Names	Unadjusted Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$     1,100
Accounts Receivable	4,100
Office Supplies	1,200
Equipment	32,700
Accumulated Depreciation - Equipment		$   13,900
Salaries Payable
Common Stock		25,200
Dividends	5,300
Service Revenue		9,000
Salaries Expense	2,200
Rent Expense	1,500
Depreciation Expense - Equipment
Supplies Expense
Total	$ 48,100	$ 48,100

The following data at April 30, 2018, are given for Best Jobs Employment Service:

• a. Service revenue accrued, $700.
• b. Office supplies used,$300.
• c. Depreciation on equipment, $1,300.
• d. Salaries owed to employees,$1,400.

Requirements

1. Calculate and enter the adjustment amounts directly in the Adjustments columns. Use letters *a *through d to label the four adjustments.
2. Calculate and enter the adjusted account balances in the Adjusted Trial Balance columns.
3. Prepare each adjusting journal entry calculated in Requirement 1. D ate the entries, and include explanations.

During elongation, which site in the ribosome represents the location where the codon is being read?

a. P site

b. E site

c. A site

d. small ribosomal subunit

All cells contain an enzyme called peptidyl-tRNA hydrolase, and cells that are deficient in the enzyme grow very slowly. What is the probable function of the enzyme and why is it necessary?

For the past several years, Abby Brown has operated a part-time consulting business from her home. As of June 1, 2012, Abby decided to move to rented quarters and to operate the business, which was to be known as Square One Consulting, on a full-time basis. Square One Consulting entered into the following transactions during June: June 1. The following assets were received from Abby Brown: cash, $30,000; accounts receivable,$7,500; supplies, $2,000; and offi ce equipment,$15,000. There were no liabilities received.

1. Paid three months’ rent on a lease rental contract, $6,000.
2. Paid the premiums on property and casualty insurance policies,$3,600.
3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $5,000.
4. Purchased additional offi ce equipment on account from Offi ce Depot Co.,$6,000.
5. Received cash from clients on account, $4,000.
6. Paid cash for a newspaper advertisement,$200.
7. Paid Offi ce Depot Co. for part of the debt incurred on June 5, $1,200.
8. Recorded services provided on account for the period June 1–12,$13,000.
9. Paid part-time receptionist for two weeks’ salary, $1,500. Record the following transactions on Page 2 of the journal.
10. Recorded cash from cash clients for fees earned during the period June 1–16,$9,000.
11. Paid cash for supplies, $1,400.
12. Recorded services provided on account for the period June 13–20,$8,500.
13. Recorded cash from cash clients for fees earned for the period June 17–24, $6,300.
14. Received cash from clients on account,$12,100.
15. Paid part-time receptionist for two weeks’ salary, $1,500.
16. Paid telephone bill for June,$150.
17. Paid electricity bill for June, $400.
18. Recorded cash from cash clients for fees earned for the period June 25–30,$3,900.
19. Recorded services provided on account for the remainder of June, $2,500.
20. Abby withdrew$10,000 for personal use. Instructions
21. Journalize each transaction in a two-column journal starting on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.)
22. Cash
23. Accounts Receivable
24. Supplies
25. Prepaid Rent
26. Prepaid Insurance
27. Offi ce Equipment
28. Accumulated Depreciation 21.. Accounts Payable
29. Salaries Payable
30. Abby Brown, Capital
31. Abby Brown, Drawing
32. Fees Earned
33. Salary Expense
34. Supplies Expense
35. Rent Expense
36. Depreciation Expense
37. Insurance Expense
38. Miscellaneous Expense
39. Post the journal to a ledger of four-column accounts.
40. Prepare an unadjusted trial balance.
41. At the end of June, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6). a. Insurance expired during June is $200. b. Supplies on hand on June 30 are$600. c. Depreciation of office equipment for June is $250. d. Accrued receptionist salary on June 30 is$350. e. Rent expired during June is $2,500. f. Unearned fees on June 30 are$3,200.
42. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet (work sheet) and complete the spreadsheet.
43. Journalize and post the adjusting entries. Record the adjusting entries on Page 3 of the journal.
44. Prepare an adjusted trial balance.
45. Prepare an income statement, a statement of owner’s equity, and a balance sheet.
46. Prepare and post the closing entries. Record the closing entries on Page 4 of the journal. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry.
47. Prepare a post-closing trial balance.

For the past two editions of the textbook, this case has followed the financial condition of Detroit, Michigan. As this text goes to print, Detroit has emerged from bankruptcy and in accordance with Michigan Public Act 181 of 2014, it is currently monitored by the Detroit Financial Review Commission for compliance with the Plan of Adjustment. In the 2016 CAFR, Detroit indicates that its debt rating has actually been upgraded from the time the last edition of the textbook was published, when its debt had received a junk bond rating of Caa2 from Moody’s.

Currently the debt is rated as B2, which puts the uninsured debt in the below investment grade category. The audit of the 2015–2016 financial reports, conducted by Plante and Moran, provided Detroit with an unmodified opinion. As discussed in the MD&A, Detroit is making progress toward a sounder financial footing. Bonded debt decreased by $5.8 billion in the fiscal year as a result of eliminated, restructured, and new debt associated with the bankruptcy restructuring.

Use the information from the table of selected 10-year trend data and the Detroit CAFR report for the year ended June 30, 2016 to complete this assignment.

Required

After completing your trend analysis in part a and providing your opinion in part b, refer to the section entitled Analyzing Government-wide Financial Statements. At the end of that section, a number of warning indicators concerning fiscal distress are listed. Using indicators from that list, does your opinion in b change? Why or why not?

Palermo Inc. purchased 80 percent of the outstanding stock of Salina Ranching Company, located in Australia, on January 1, 20X3. The purchase price in Australian dollars (A$) was A$200,000, and A$40,000 of the differential was allocated to plant and equipment, which is amortized over a 10-year period. The remainder of the differential was attributable to a patent. Palermo Inc. amortizes the patent over 10 years. Salina Ranching's trial balance on December 31, 20X3, in Australian dollars is as follows:$

$$\begin{array}{lrr} & \textbf{Debits} & \textbf{Credits}\\ \\ \text{Cash} & \text{A\$\hspace{5pt}44,100}\\ \text{Accounts Receivable (net)} &72,000\\ \text{Inventory} & 86,000\\ \text{Plant \& Equipment} & 240,000\\ \text{Accumulated Depreciation} && \text{A\$\hspace{5pt}60,000}\\ \text{Accounts Payable} && 53,800\\ \text{Payable to Palermo Inc.} && 10,800\\ \text{Interest Payable} &&3,000\\ \text{12\\\% Bonds Payable} &&100,000\\ \text{Premium on Bonds} &&5,700\\ \text{Common Stock} && 90,000\\ \text{Retained Earnings} &&40,000\\ \text{Sales} && 579,000\\ \text{Cost of Goods Sold} &330,000\\ \text{Depreciation Expense} & 24,000\\ \text{Operating Expenses} & 131,500\\ \text{Interest Expense} & 5,700\\ \text{Dividends Paid} &9,000\\ \hline \text{Total} & \underline{\underline{\text{A\$942,300}}} & \underline{\underline{\text{A\$942,300}}}\\ \end{array}$$

$$**Additional Information** 1. Salina Ranching uses average cost for cost of goods sold. Inventory increased by A\$20,000 during the year. Purchases were made uniformly during 20X3. The ending inventory was acquired at the average exchange rate for the year. 2. Plant and equipment were acquired as follows:$$

$$\begin{array}{lr} \textbf{Date} & \textbf{ Cost } \\ \\ \text{January 20X1} & \text{A\$180,000} \\ \text{January 1, 20X3} & 60,000 \\ \end{array}$$

$3. Plant and equipment are depreciated using the straight-line method and a 10-year life with no residual value.

4. The payable to Palermo is in Australian dollars. Palermo's books show a receivable from Salina Ranching of$6,480.

5. The 10-year bonds were issued on July 1, 20X3, for A$106,000. The premium is amortized on a straight-line basis. The interest is paid on April 1 and October 1.

6. The dividends were declared and paid on April 1.

7. Exchange rates were as follows:

$$\begin{array}{lr} & \textbf{A\$ \hspace{10pt} \$} \\ \text{January 20X1} & 1 = 0.93\\ \text{August 20X1} & 1 = 0.88\\ \text{January 1, 20X3} & 1 = 0.70\\ \text{April 1, 20X3} & 1 = 0.67\\ \text{July 1, 20X3} & 1 = 0.64\\ \text{December 31, 20X3} & 1 = 0.60\\ \text{20X3 average} & 1 = 0.65\\ \end{array}$$

Assume that the Australian dollar (AS) is the functional currency and that Palermo uses the fully adjusted equity method for accounting for its investment in Salina Ranching. A December 31, 20X3, trial balance for Palermo Inc. follows. Use this translated trial balance for completing this problem.

$$\begin{array}{lrr} \textbf{Item} & \textbf{Debit} & \textbf{Credit}\\ \\ \text{Cash} & \$\hspace{10pt}38,000\\ \text{Accounts Receivable (net)} & 140,000\\ \text{Receivable from Salina Ranching} & 6,480\\ \text{Inventory} & 128,000\\ \text{Plant \& Equipment} &500,000\\ \text{Investment in Salina Ranching} & 152,064\\ \text{Cost of Goods Sold} & 600,000\\ \text{Depreciation Expense} & 28,000\\ \text{Operating Expenses} & 204,000\\ \text{Interest Expense} & 2,000\\ \text{Dividends Declared} & 50,000\\ \text{Translation Adjustment} & 22,528\\ \text{Accumulated Depreciation} && \$\hspace{10pt}90,000\\ \text{Accounts Payable} && 60,000\\ \text{Interest Payable} && 2,000\\ \text{Common Stock} &&500,000\\ \text{Retained Earnings, January 1, 20X3} &&179,656\\ \text{Sales} && 1,000,000\\ \text{Income from Subsidiary} &&39,416\\ \hline \text{Total} & \underline{\underline{\$1,871,072}} & \underline{\underline{\$1,871,072}}\\ \end{array}$$

Required

Prepare a set of elimination entries, in general journal form, for the entries required to prepare a comprehensive consolidation worksheet (including other comprehensive income) as of December 31, 20X3.

Stoscheck Moving Corporation has been in operation since January 1, 2012.. It is now December 31, 2012, the end of the annual accounting period. The company has not done well financially during the first year, although revenue has been fairly good. The three stockholders manage the company, but they have not given much attention to recordkeeping. In view of a serious cash shortage, they have applied to your bank for a $30,000 loan. You requested a complete set of financial statements. The following 2012 annual financial statements were prepared by a clerk and then were given to the bank.

$$\begin{array}{c} \hline \hspace{60pt}\textbf{STOSCHECK MOVING CORP.}\hspace{60pt}\\ \textbf{Balance Sheet}\\ \textbf{At December 31, 2012}\\ \hline \end{array}$$

$$\begin{array}{llr} \underline{\text{Assets}}\\ \hspace{5pt}\text{Cash}&&\$\text{\hspace{15pt}{2,000}}\\ \hspace{5pt}\text{Receivables }&&\text{3,000}\\ \hspace{5pt}\text{Supplies}&&\text{4,000}\\ \hspace{5pt}\text{Equipment}&&\text{40,000}\\ \hspace{5pt}\text{Prepaid insurance}&&\text{6,000}\\ \hspace{5pt}\text{Remaining assets}&&\text{\underline{\hspace{15pt}{27,000}}}\\ \text{Total assets}&&\underline{\underline{\$\hspace{10pt}\text{82,000}}}\\ \\ \text{Liabilities}\\ \hspace{5pt}\text{Accounts payable }&&\$\hspace{10pt}\text{9,000}\\\\ \text{Stockholders' Equity}\\ \hspace{5pt}\text{Contributed capital (10,000 shares outstanding)}&&\text{35,000}\\ \hspace{5pt}\text{Retained earnings}&&\underline{\text{\hspace{10pt}38,000}}\\ \text{Total liabilities and stockholders’ equity}&& \underline{\underline{\$\hspace{5pt}\text{82,000}}}\\\\ \hline \end{array}$$

$$\begin{array}{c} \hline \hspace{10pt}\textbf{STOSCHECK MOVING CORP.}\hspace{10pt}\\ \textbf{Income Statement}\\ \textbf{For the Period Ended December 31, 2012}\\ \hline \end{array}$$

$$\begin{array}{lrr} \text{Transportation revenue}&&\$\hspace{5pt}\text{85,000}\\ \text{Expenses}\\ \hspace{10pt}\text{ Salaries expense}&&\text{17,000}\\ \hspace{10pt}\text{Supplies expense}&&\text{12,000}\\ \hspace{10pt}\text{Other expenses}&&\underline{\hspace{10pt}\text{18,000}}\\ \hspace{20pt}\text{Total expenses}&&\underline{\hspace{10pt}\text{47,000}}\\ \text{Net income}&\hspace{45pt}&\underline{\underline{\$\hspace{5pt}\text{38,000}}}\\\\ \hline \end{array}$$

After briefly reviewing the statements and “looking into the situation,” you requested that the statements be redone (with some expert help) to “incorporate depreciation, accruals, inventory counts, income taxes, and so on.” As a result of a review of the records and supporting documents, the following additional information was developed:

a. The Supplies of $4,000 shown on the balance sheet has not been adjusted for supplies used during 2012. A count of the supplies on hand on December 31, 2012, showed$1,800.

b. The insurance premium paid in 2012 was for years 2012 and 2013. The total insurance premium was debited in full to Prepaid Insurance when paid in 2012 and no adjustment has been made.

c. The equipment cost $40,000 when purchased January 1, 2012. It had an estimated annual depreciation of$8,000. No depreciation has been recorded for 2012.

d. Unpaid (and unrecorded) salaries at December 31, 2012, amounted to $3,200.

e. At December 31, 2012, transportation revenue collected in advance amounted to$7,000. This amount was credited in full to Transportation Revenue when the cash was collected earlier during 2012.

f. The income tax rate is 35 percent.

Required:

1. Record the six adjusting entries required on December 31, 2012, based on the preceding additional information.

2. Recast the preceding statements after taking into account the adjusting entries. You do not need to use classifications on the statements. Suggested form for the solution:

Kenseth Corporation’s unadjusted trial balance at December 1, 2014, is presented below.

$$\begin{array}{lccc} &\underline{\textbf{Debit}}&\underline{\textbf{Credit}}\\[5pt] \text{Cash}&\text{\$\hspace{14pt}22,000}\\ \text{Accounts Receivable}&\text{\hspace{19pt}36,800}\\ \text{Notes Receivable}&\text{\hspace{19pt}10,000}\\ \text{Interest Receivable}&\text{\hspace{42pt}0}\\ \text{Inventory}&\text{\hspace{19pt}36,200}\\ \text{Prepaid Insurance}&\text{\hspace{24pt}3,600}\\ \text{Land}&\text{\hspace{19pt}20,000}\\ \text{Buildings}&\text{\hspace{14pt}150,000}\\ \text{Equipment}&\text{\hspace{19pt}60,000}\\ \text{Patent}&\text{\hspace{24pt}9,000}\\ \text{Allowance for Doubtful Accounts}&&\text{\$\hspace{27pt}500}\\ \text{Accumulated Depreciation—Buildings}&&\text{\hspace{19pt}50,000}\\ \text{Accumulated Depreciation—Equipment}&&\text{\hspace{19pt}24,000}\\ \text{Accounts Payable}&&\text{\hspace{19pt}27,300}\\ \text{Salaries and Wages Payable}&&\text{\hspace{42pt}0}\\ \text{Notes Payable (due April 30, 2015)}&&\text{\hspace{19pt}11,000}\\ \text{Income Taxes Payable}&&\text{\hspace{42pt}0}\\ \text{Interest Payable}&&\text{\hspace{42pt}0}\\ \text{Notes Payable (due in 2020)}&&\text{\hspace{19pt}35,000}\\ \text{Common Stock}&&\text{\hspace{19pt}50,000}\\ \text{Retained Earnings}&&\text{\hspace{19pt}63,600}\\ \text{Dividends}&\text{\hspace{19pt}12,000}\\ \text{Sales Revenue}&&\text{\hspace{14pt}900,000}\\ \text{Interest Revenue}&&\text{\hspace{42pt}0}\\ \text{Gain on Disposal of Plant Assets}&&\text{\hspace{42pt}0}\\ \text{Bad Debt Expense}&\text{\hspace{42pt}0}\\ \text{Cost of Goods Sold}&\text{\hspace{14pt}630,000}\\ \text{Depreciation Expense}&\text{\hspace{42pt}0}\\ \text{Income Tax Expense}&\text{\hspace{42pt}0}\\ \text{Insurance Expense}&\text{\hspace{42pt}0}\\ \text{Interest Expense}&\text{\hspace{42pt}0}\\ \text{Other Operating Expenses}&\text{\hspace{19pt}61,800}\\ \text{Amortization Expense}&\text{\hspace{42pt}0}\\ \text{Salaries and Wages Expense}&\underline{\text{\hspace{14pt}110,000}}&\underline{\text{\hspace{45pt}}}\\ \text{Total}&\underline{\underline{\text{\$\hspace{1pt}1,161,400}}}&\underline{\underline{\text{\$\hspace{1pt}1,161,400}}}\\ \end{array}$$

The following transactions occurred during December.

Dec.  2 Purchased equipment for $16,000, plus sales taxes of$800 (paid in cash).
      2 Kenseth sold for $3,500 equipment which originally cost$5,000. Accumulated depreciation on this equipment at January 1, 2014, was $1,800; 2014 depreciation prior to the sale of equipment was$825.
     15 Kenseth sold for $5,000 on account inventory that cost$3,500.
     23 Salaries and wages of $6,600 were paid.

Adjustment data:

1. Kenseth estimates that uncollectible accounts receivable at year-end are$4,000.
2. The note receivable is a one-year, 8% note dated April 1, 2014. No interest has been recorded.
3. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2014.
4. The building is being depreciated using the straight-line method over 30 years. The salvage value is$30,000.
5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost.
6. The equipment purchased on December 2, 2014, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,800.
7. The patent was acquired on January 1, 2014, and has a useful life of 9 years from that date.
8. Unpaid salaries at December 31, 2014, total$2,200.
9. Both the short-term and long-term notes payable are dated January 1, 2014, and carry a 10% interest rate. All interest is payable in the next 12 months.
10. Income tax expense was $15,000. It was unpaid at December 31.

Instructions

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

Describe one experiment that supports the statement that an rRNA and not a protein component of the ribosome catalyzes the peptidyl transferase reaction.

This problem continues the Crystal Clear Cleaning practice set begun in Chapter 2 and continued through Chapters 3 and 4. Crystal Clear Cleaning has decided that, in addition to providing cleaning services, it will sell cleaning products. Crystal Clear uses the perpetual inventory system. During December 2018, Crystal Clear completed the following transactions:

• Dec. 2 - Purchased 1,000 units of inventory for $4,000 on account from Sparkle Company on terms, 5/10, n/20.
•         5 - Purchased 1,200 units of inventory from Borax on account with terms 4/10, n/30. The total invoice was for$6,000, which included a $300 freight charge.
•         7 - Returned 300 units of inventory to Sparkle from the December 2 purchase (cost$1,200).
•         9 - Paid Borax.
•       11 - Sold 500 units of goods to Happy Maids for $5,500 on account with terms n/30. Crystal Clear's cost of the goods was$2,000.
•       12 - Paid Sparkle.
•       15 - Received 100 units with a retail price of $1,100 back from customer Happy Maids. The goods cost Crystal Clear$400.
•       21 - Received payment from Happy Maids, settling the amount due in full.
•       28 - Sold 500 units of goods to Bridget, Inc. on account for $6,500 (cost$2,022). Terms 1/15, n/30.
•       29 - Paid cash for utilities of $550.
•       30 - Paid cash for Sales Commission Expense of$214.
•       31 - Received payment from Bridget, Inc., less discount.
•       31 - Recorded the following adjusting entries:      a. Physical count of inventory on December 31 showed 800 units of goods on hand, with a cost of $3,848.
       b. Depreciation,$150.
       c. Accrued salaries expense of $2,100.
       d. Estimated sales returns of$1,500, with cost of $540.
       e. Prepared all other adjustments necessary for December (Hint: You will need to review the adjustment information in Chapter 3 to determine the remaining adjustments). Assume the cleaning supplies left at December 31 are$50.

Requirements

1. Open the following T-accounts in the ledger: Cash, $51,650; Accounts Receivable,$4,000; Merchandise Inventory, $0; Estimated Returns Inventory,$0; Cleaning Supplies, $50; Prepaid Rent,$3,000; Prepaid Insurance, $4,400; Equipment,$5,400; Truck, $3,000; Accumulated Depreciation,$150; Accounts Payable, $1,245; Salaries Payable,$0; Interest Payable, $59; Refunds Payable,$0; Unearned Revenue, $14,375; Notes Payable,$36,000; Common Stock, $18,000; Retained Earnings,$1,671; Income Summary, $0; Dividends,$0; Service Revenue, $0; Sales Revenue,$0; Cost of Goods Sold, $0; Salaries Expense,$0; Sales Commission Expense, $0; Utilities Expense,$0; Depreciation Expense, $0; Rent Expense,$0; Insurance Expense, $0; Interest Expense,$0.
2. Journalize and post the December transactions. Omit explanations. Compute each account balance, and denote the balance as Balance. Identify each accounts payable and accounts receivable with the vendor or customer name.
3. Journalize and post the adjusting entries. Omit explanations. Denote each adjusting amount as Adj. Compute each account balance, and denote the balance as Balance. After posting all adjusting entries, prove the equality of debits and credits in the ledger by preparing an adjusted trial balance.
4. Prepare the single step income statement and statement of retained earnings for the month ended December 31, 2018. Also prepare a classified balance sheet at December 31, 2018. Assume the note payable is long-term.
5. Compute the gross profit percentage for December for the company.

Visit an Internet auction site. How does the site work? What are the advantages and disadvantages of using this site?

Galaxy Theater Production Company's partially completed worksheet as of December 31, 2018, follows.

Adjustment data at December 31 follow:

• a. As of December 31, Galaxy had performed $900 of service revenue but has not yet billed customers.
• b. At the end of the month, Galaxy had$500 of office supplies remaining.
• c. Prepaid Insurance of $600 remained.
• d. Depreciation expense,$4,200.
• e. Accrued salaries expense of $150 that hasn't been paid yet.

Requirements

1. Complete the worksheet. Use letters a through e to label the five adjustments.
2. Journalize the adjusting entries.

In this exercise, use the statement below as the map provided.

Site A: -2.7m

Site B: $-\dfrac{21}{9}$m

Site C: -2.27m

Site D: $-\dfrac{20}{7}$m

Archaeologists are excavating a new Site E. On a number line, the depth of Site E is in between the depths of Site A and Site B. What is a possible depth of Site E?

Klinger Corporation’s balance sheet at December 31, 2013, is presented below.

$$\begin{array}{c} \textbf{KLINGER CORPORATION}\\ \textbf{Balance Sheet}\\ \textbf{December 31, 2013}\\ \end{array}$$

$$\begin{array}{lrlr} \text{Cash}&\text{\$\hspace{5pt}24,600}&\text{Accounts payable}&\text{\$\hspace{5pt}25,600}\\ \text{Accounts receivable}&\text{45,500}&\text{Common stock (\$10 par)}&\text{80,000}\\ \text{Allowance for doubtful accounts}&\text{(1,500)}&\text{Retained earnings}&\underline{\text{\hspace{5pt}127,400}}\\ \text{Supplies}&\text{4,400}&&\underline{\underline{\text{\$\hspace{1pt}233,000}}}\\ \text{Land}&\text{40,000}\\ \text{Buildings}&\text{142,000}\\ \text{Accumulated depreciation—buildings}&\underline{\text{\hspace{4pt}(22,000)}}\\ &\underline{\underline{\text{\$\hspace{1pt}233,000}}}\\ \end{array}$$

During 2014, the following transactions occurred.

1. On January 1, 2014, Klinger issued 1,200 shares of $40 par, 7% preferred stock for$49,200.

2. On January 1, 2014, Klinger also issued 900 shares of the $10 par value common stock for$21,000.

3. Klinger performed services for $320,000 on account.

4. On April 1, 2014, Klinger collected fees of$36,000 in advance for services to be performed from April 1, 2014, to March 31, 2015.

5. Klinger collected $276,000 from customers on account.

6. Klinger bought$35,100 of supplies on account.

7. Klinger paid $32,200 on accounts payable.

8. Klinger reacquired 400 shares of its common stock on June 1, 2014, for$28 per share.

9. Paid other operating expenses of $188,200.

10. On December 31, 2014, Klinger declared the annual preferred stock dividend and a$1.20 per share dividend on the outstanding common stock, all payable on January 15, 2015.

11. An account receivable of $1,700 which originated in 2013 is written off as uncollectible.

Adjustment data:

1. A count of supplies indicates that$5,900 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 $3,500 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$10,000.
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.)

Instructions

(You may want to set up T-accounts to determine ending balances.)

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

(b) Prepare an adjusted trial balance at December 31, 2014.