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Q1) Nordham Corporation's trial balance at December 31, 2008, is given below. All 2008 transactions have been recorded except for items describeed below and on the next page.


  Debit Credit
Cash $ 23,000  
Accounts Receivable 51,000  
Merchandise Inventory 22,700  
Land 65,000  
Building 95,000  
Equipment 40,000  
Allowance for Doubtful Accounts   $    450
Accumulated Depreciation-Building   30,000
Accumulated Depreciation-Equipment   14,400
Accounts Payable   19,300
Bond Interest Payable   -0-
Dividends Payable   -0-
Unearned Rent Revenue   8,000
Bonds Payable (10%)   50,000
Common Stock ($10 par)   30,000
Paid-in Capital in Excess of Par-Common Stock   6,000
Preferred Stock ($20 par)   -0-
Paid-in Capital in Excess of Par-Preferred Stock   -0-
Retained Earnings   75,050
Treasury Stock -0-  
Dividends -0-  
Sales   570,000
Rent Revenue   -0-
Bad Debts Expense -0-  
Bond Interest Expense 2,500  
Cost of Goods Sold 400,000  
Depreciation Expense-Buildings -0-  
Depreciation Expense-Equipment -0-  
Other Operating Expenses 39,000  
Salaries Expense 65,000  
Total $803,200 $803,200


Unrecorded transactions

1. On January 1, 2008, Nordham issued 1,000 shares of $20 par, 6% preferred stock for $22,000.

2. On January 1, 2008, Nordham also issued 1,000 shares of common stock for $23,000.

3. Nordham obtained 300 shares of its common stock on July 1, 2008, for $49 per share.

4. On December 31, 2008, Nordham declared annual preferred stock dividend and a $1.50 per share dividend on outstanding common stock, all payable on January 15, 2009.

5. Nordham estimates that uncollectible account receivable at year-end is $5,100.

6. Building is being depreciated using straight-line method over 30 years. Salvage value is $5,000.

7. Equipment is being depreciated using straight-line method over 10 years. Salvage value is $4,000.

8. Unearned rent was collected on October 1, 2008. It was receipt of 4 months' rent in advance (October 1, 2008 through January 31, 2009).

9. 10% bonds payable pay interest every January 1 and July 1. Interest for 6 months ended December 31, 2008, has not been paid or recorded.




a) Create journal entries for transactions given above.


b) Create an updated Dec 31st trial balance, reflecting the unrecorded transaction


c) Create a multiple-step income statement for year ending Dec 31st 


d) Create a retained earnings statement for year ending dec 31 


e) Create a classified Balance sheet for Dec

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