Crane Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below. Debit CreditCash $25,500 Accounts Receivable 50,000 Inventory 23,000 Land 65,800 Buildings 109,200 Equipment 43,000 Allowance for Doubtful Accounts $460Accumulated Depreciation—Buildings 35,000Accumulated Depreciation—Equipment 12,000Accounts Payable 19,200Interest Payable –0–Dividends Payable –0–Unearned Rent Revenue 6,400Bonds Payable (10%) 40,000Common Stock ($10 par) 30,000Paid-in Capital in Excess of Par—Common Stock 6,000Preferred Stock ($20 par) –0–Paid-in Capital in Excess of Par—Preferred Stock –0–Retained Earnings 98,040Treasury Stock –0– Cash Dividends –0– Sales Revenue 576,000Rent Revenue –0–Bad Debt Expense –0– Interest Expense –0– Cost of Goods Sold 403,000 Depreciation Expense –0– Other Operating Expenses 38,600 Salaries and Wages Expense 65,000 Total $823,100 $823,100Unrecorded transactions and adjustments:1. On January 1, 2020, Crane issued 1,000 shares of $20 par, 6% preferred stock for $22,000.2. On January 1, 2020, Crane also issued 1,200 shares of common stock for $26,400.3. Crane reacquired 320 shares of its common stock on July 1, 2020, for $47 per share.4. On December 31, 2020, Crane declared the annual cash dividend on the preferred stock and a $1.30 per share dividend on the outstanding common stock, all payable on January 15, 2021.5. Crane estimates that uncollectible accounts receivable at year-end is $5,000.6. The building is being depreciated using the straight-line method over 30 years. The salvage value is $4,200.7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,300.8. The unearned rent was collected on October 1, 2020. It was receipt of 4 months’ rent in advance (October 1, 2020 through January 31, 2021).9. The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded.(Ignore income taxes.) Crane Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below. Debit CreditCash $25,500 Accounts Receivable 50,000 Inventory 23,000 Land 65,800 Buildings 109,200 Equipment 43,000 Allowance for Doubtful Accounts $460Accumulated Depreciation—Buildings 35,000Accumulated Depreciation—Equipment 12,000Accounts Payable 19,200Interest Payable –0–Dividends Payable –0–Unearned Rent Revenue 6,400Bonds Payable (10%) 40,000Common Stock ($10 par) 30,000Paid-in Capital in Excess of Par—Common Stock 6,000Preferred Stock ($20 par) –0–Paid-in Capital in Excess of Par—Preferred Stock –0–Retained Earnings 98,040Treasury Stock –0– Cash Dividends –0– Sales Revenue 576,000Rent Revenue –0–Bad Debt Expense –0– Interest Expense –0– Cost of Goods Sold 403,000 Depreciation Expense –0– Other Operating Expenses 38,600 Salaries and Wages Expense 65,000 Total $823,100 $823,100Unrecorded transactions and adjustments:1. On January 1, 2020, Crane issued 1,000 shares of $20 par, 6% preferred stock for $22,000.2. On January 1, 2020, Crane also issued 1,200 shares of common stock for $26,400.3. Crane reacquired 320 shares of its common stock on July 1, 2020, for $47 per share.4. On December 31, 2020, Crane declared the annual cash dividend on the preferred stock and a $1.30 per share dividend on the outstanding common stock, all payable on January 15, 2021.5. Crane estimates that uncollectible accounts receivable at year-end is $5,000.6. The building is being depreciated using the straight-line method over 30 years. The salvage value is $4,200.7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,300.8. The unearned rent was collected on October 1, 2020. It was receipt of 4 months’ rent in advance (October 1, 2020 through January 31, 2021).9. The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded.(Ignore income taxes.)Prepare an updated December 31, 2020, trial balance, reflecting the journal entries in part(a).CRANE CORPORATIONTrial Balance For the Month Ended December 31, 2020For the Year Ended December 31, 2020December 31, 2020 DebitCredit $ $ $ $ 1.CashPreferred Stock20000Pald-in Capital in Excess of Par-Preferred Stock20002. Cash26400Common Stock12000Paid-in Capital in Excess of Par-Common Stock144003. Treasury Stock15040Cash150406244Dividends Payable62445. IBad Debt Expense45404540Allowance for Doublful Accounts35006. Depreciation Experise3500/138707- Depredation ExpenseAccumulated Deptediation-Fqupment8. JUnearred Rent Revenus4800,Reht Reverue2000

Name: Crane Corporation’s trial balance at December 31, 2020, is presented b
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Description: Crane Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below. Debit CreditCash $25,500 Accounts Receivable 50,000 Inventory 23,000 Land 65,800 Buildings

Debit the receiver and credit the giver. Debit what comes in and credit what goes out. Debit…

Answered: Prepare an updated December 31, 2020,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Crane Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

	Debit	Credit
Cash	$25,500
Accounts Receivable	50,000
Inventory	23,000
Land	65,800
Buildings	109,200
Equipment	43,000
Allowance for Doubtful Accounts		$460
Accumulated Depreciation—Buildings		35,000
Accumulated Depreciation—Equipment		12,000
Accounts Payable		19,200
Interest Payable		–0–
Dividends Payable		–0–
Unearned Rent Revenue		6,400
Bonds Payable (10%)		40,000
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		98,040
Treasury Stock	–0–
Cash Dividends	–0–
Sales Revenue		576,000
Rent Revenue		–0–
Bad Debt Expense	–0–
Interest Expense	–0–
Cost of Goods Sold	403,000
Depreciation Expense	–0–
Other Operating Expenses	38,600
Salaries and Wages Expense	65,000
Total	$823,100	$823,100

Unrecorded transactions and adjustments:

1.		On January 1, 2020, Crane issued 1,000 shares of $20 par, 6% preferred stock for $22,000.
2.		On January 1, 2020, Crane also issued 1,200 shares of common stock for $26,400.
3.		Crane reacquired 320 shares of its common stock on July 1, 2020, for $47 per share.
4.		On December 31, 2020, Crane declared the annual cash dividend on the preferred stock and a $1.30 per share dividend on the outstanding common stock, all payable on January 15, 2021.
5.		Crane estimates that uncollectible accounts receivable at year-end is $5,000.
6.		The building is being depreciated using the straight-line method over 30 years. The salvage value is $4,200.
7.		The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,300.
8.		The unearned rent was collected on October 1, 2020. It was receipt of 4 months’ rent in advance (October 1, 2020 through January 31, 2021).
9.		The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded.

(Ignore income taxes.)

Crane Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

	Debit	Credit
Cash	$25,500
Accounts Receivable	50,000
Inventory	23,000
Land	65,800
Buildings	109,200
Equipment	43,000
Allowance for Doubtful Accounts		$460
Accumulated Depreciation—Buildings		35,000
Accumulated Depreciation—Equipment		12,000
Accounts Payable		19,200
Interest Payable		–0–
Dividends Payable		–0–
Unearned Rent Revenue		6,400
Bonds Payable (10%)		40,000
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		98,040
Treasury Stock	–0–
Cash Dividends	–0–
Sales Revenue		576,000
Rent Revenue		–0–
Bad Debt Expense	–0–
Interest Expense	–0–
Cost of Goods Sold	403,000
Depreciation Expense	–0–
Other Operating Expenses	38,600
Salaries and Wages Expense	65,000
Total	$823,100	$823,100

Unrecorded transactions and adjustments:

1.		On January 1, 2020, Crane issued 1,000 shares of $20 par, 6% preferred stock for $22,000.
2.		On January 1, 2020, Crane also issued 1,200 shares of common stock for $26,400.
3.		Crane reacquired 320 shares of its common stock on July 1, 2020, for $47 per share.
4.		On December 31, 2020, Crane declared the annual cash dividend on the preferred stock and a $1.30 per share dividend on the outstanding common stock, all payable on January 15, 2021.
5.		Crane estimates that uncollectible accounts receivable at year-end is $5,000.
6.		The building is being depreciated using the straight-line method over 30 years. The salvage value is $4,200.
7.		The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,300.
8.		The unearned rent was collected on October 1, 2020. It was receipt of 4 months’ rent in advance (October 1, 2020 through January 31, 2021).
9.		The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded.

(Ignore income taxes.)

Prepare an updated December 31, 2020, trial balance, reflecting the journal entries in part(a).

CRANE CORPORATION Trial Balance For the Month Ended December 31, 2020For the Year Ended December 31, 2020December 31, 2020
	Debit	Credit
	$	$




























	$	$

1.
Cash
Preferred Stock
20000
Pald-in Capital in Excess of Par-Preferred Stock
2000
2. Cash
26400
Common Stock
12000
Paid-in Capital in Excess of Par-Common Stock
14400
3. Treasury Stock
15040
Cash
15040
6244
Dividends Payable
6244
5. IBad Debt Expense
4540
4540
Allowance for Doublful Accounts
3500
6. Depreciation Experise
3500/
13870
7- Depredation Expense
Accumulated Deptediation-Fqupment
8. JUnearred Rent Revenus
4800,
Reht Reverue
2000

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