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Plankton CorporationâÂÂs trail balance at December 31, 2004 is presented below.

Plankton Corporation�s trail balance at December 31, 2004 is presented
below. All 2004 transactions have been recorded except for the items
number 1 � 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 � 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 � 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-
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 � Building -0-
Depriciation Expense � 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.

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