Please prepare an updated adjusted trial balance, the income statement, a retained earnings statement, and a classified balance sheet.
Crane Corporation's trial balance at December 31, 2022, is presented below. All 2022 transactions have been recorded except for the items described below.
Debit $32,130 64,260 28,602
Credit
Cash Accounts Receivable
Inventory
Land
81,900
Buildings Equipment Allowance for Doubtful Accounts
119,700 50,400
$567
Accumulated Depreciation Buildings
37,800 18,144 24,318 -0- -0- 10,080 63,000 -0- -0- 37,800
Accumulated Depreciation Equipment
Accounts Payable
Interest Payable
Dividends Payable
Unearned Rent Revenue
Bonds Payable (10%)
Preferred Stock ($20 par)
Paid-in Capital in Excess of Par Preferred Stock
Common Stock ($10 par) Paid-in Capital in Excess of Par Common Stock
7,560 94,563
Retained Earnings
Treasury Stock
-0-
Cash Dividends Sales Revenue
-0-
718,200
Rent Revenue
-0-
Bad Debt Expense
-0-
Interest Expense
-0- 500,000 -0- 49,140 81,900 $1,012,032 $1,012,032
Cost of Goods Sold
Depreciation Expense
Other Operating Expenses
Salaries and Wages Expense
Unrecorded transactions and adjustments:
1
On January 1, 2022, Crane issued 1,260 shares of $20 par, 6% preferred stock for $27,720
2
On January 1, 2022, Crane also issued 1,260 shares of common stock for $28,980.
3.
Crane reacquired 378 shares of its common stock on July 1, 2022, for $49 per share.
On December 31, 2022, Crane 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, 2023.
Crane estimates that uncollectible accounts receivable at year-end are $6,426.
6
The building is being depreciated using the straight-line method over 30 years. The salvage value is $6,300.
The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $5,040.
8.
The unearned rent was collected on October 1, 2022. It was receipt of 4 months' rent in advance (October 1, 2022 through January 31, 2023).
9
The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2022, has not been paid or recorded.
(Ignore income taxes.)
