Zinc Inc, has 36000 shares of $2 par value common stock authorized, with 8993, 250 shares outstanding in 2022.make the necessary journal entries to record the following transactions 6/21/22 collected 5036,000 in rent6/23/22 paid 755000 in legal fees 6/24/22 received 3777000 from lawsuit against contractor, an unusual result6/24/22 purchased a new building for 4155000 6/30.22 collected 2518000 in rent revenue. Create a trial balance using the balances from the ledger or t accounts. Only accounts with balances should be included. The accounts should be in order. Then make the following adjusting entriesNo depreciation has been recorded on the company's Land or new PPE. Zions, Inc.'s accounting staff believes that the Land has a useful life of 30 years with a $6,043,464 salvage value. They also believe that the new PPE has a remaining useful life of 19 years with a $5,650,639 salvage value. When calculating depreciation, keep in mind that Zions, Inc. does not use partial year depreciation. They record a full year of depreciation, regardless of when an asset was purchased. HINT: New PPE is the amount added this year, and is shown as the debit below the beginning balance of the Buildings account! Zions, Inc. recorded and paid interest on all of their outstanding notes 3 months ago. Payments are due on the notes every 6 months, and the interest rate on both notes is 15.5% (they were issued by the same bank with the same terms, just 2 years apart). Unlike the federal government, the state where Zions, Inc. does business charges property taxes instead of an income tax. These taxes are charged on an assessed market value assigned by the government for tax purposes; the assessed value does not match what Zions, Inc. actually paid for the assets. In fact, the assessed value comes out to 57% of the book value (historical costs - accumulated deprecation, if any) of the company's land owned at the end of the fiscal year. The property tax rate for 2022 is 6%. The taxes will be paid when they are due on September 1, 2022.Create an adjusted trial balance using the values from the adjusting entries. Create a multi-step income statement using balances from the adjusted trial balance Legal Fees ExpenseSo$419,685$419,685$419,685$419,685$419,685$419,685$419,685$419,685$419,685$419,685$419,685$419,685Property Tax ExpenseSoInterest ExpenseSo$9,870,991$920,909Income Tax ExpenseSol$5,633,372Loss on Sale of Buildings$o$2,518,110Other Gains$o 8 $16,028,4809$6,440,60610112 $3,453,40813 $1,932,182141516173940Cash43.1445461728 $23,183,8793050515253$345,341$7,728,727506152$3,864,364$2,576,242$863.352$4,186,39448 $10,304,96919$4,508,424$7,084,666$5,152,485$8,372,788$5,796,545$172,670$330,952$419,685$419,685$1,107,970 $2,302,272$2,590,056$1,208,693$1,151,136$419,685$6,760,046$419,685$419,685$419,685$2,158,380$419,685$27,102,058$419,685$1,438,920$419,685$719,460$419,685$419,685$419,685$1,079,190$1,798,650$2,590,056$3,885,084Accounts Receivable$17,062,738 $1,107,970$9,212,002$2,158,380$3,453,408$287,784$9,870,991$920,909$863,352$402,898$3,453,408Accounts Payable$17,062,738$9,212,002$345,341$172,670$11,079,700$2,215,940$5,539,850$24.375,340Common stock| $17,986,500Net Revenue$o$1,438,920$2,877,840$7,194,600$15,828,120$3,597,300$719,460$4,316,760$21,511,854$11,511,360$359,730$503,622$2,086,434Land$69,068,160$12,950,280$4.316,7601JIITaxes Payable$6,760,046Additional Paid-In capital$53,959,500$4,004,514$5,633,372Advertising Expense$o$1,079,190$2,158,380$1,438,920$719,460|$1,798,650Buildings$201,808,530$40,361,706$4,748,436Loan Payable$70,507,080Interest PayableRetained Earnings$2,590,056$3,885,084.$2,158,380Bad Debt Expense$oSo$51,801,120Accumulated Depreciation$56,578,334$1,899,374$6,475,140Notes PayableDividendsSo$27,102,058$24,441,830$51,820,930Depreciation Expense$o$6,475,140

In the books of Zinc. Inc Journal entries : Date Particulars Debit amount ($) Credit…

Answered: Zinc Inc, has 36000 shares of $2 par…

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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Zinc Inc, has 36000 shares of $2 par value common stock authorized, with 8993, 250 shares outstanding in 2022.

make the necessary journal entries to record the following transactions

6/21/22 collected 5036,000 in rent

6/23/22 paid 755000 in legal fees

6/24/22 received 3777000 from lawsuit against contractor, an unusual result

6/24/22 purchased a new building for 4155000

6/30.22 collected 2518000 in rent revenue.

Create a trial balance using the balances from the ledger or t accounts. Only accounts with balances should be included. The accounts should be in order.

Then make the following adjusting entries

No depreciation has been recorded on the company's Land or new PPE. Zions, Inc.'s accounting staff believes that the Land has a useful life of 30 years with a $6,043,464 salvage value. They also believe that the new PPE has a remaining useful life of 19 years with a $5,650,639 salvage value. When calculating depreciation, keep in mind that Zions, Inc. does not use partial year depreciation. They record a full year of depreciation, regardless of when an asset was purchased. HINT: New PPE is the amount added this year, and is shown as the debit below the beginning balance of the Buildings account!

Zions, Inc. recorded and paid interest on all of their outstanding notes 3 months ago. Payments are due on the notes every 6 months, and the interest rate on both notes is 15.5% (they were issued by the same bank with the same terms, just 2 years apart).

Unlike the federal government, the state where Zions, Inc. does business charges property taxes instead of an income tax. These taxes are charged on an assessed market value assigned by the government for tax purposes; the assessed value does not match what Zions, Inc. actually paid for the assets. In fact, the assessed value comes out to 57% of the book value (historical costs - accumulated deprecation, if any) of the company's land owned at the end of the fiscal year. The property tax rate for 2022 is 6%. The taxes will be paid when they are due on September 1, 2022.

Create an adjusted trial balance using the values from the adjusting entries.

Create a multi-step income statement using balances from the adjusted trial balance

Legal Fees Expense
So
$419,685
$419,685
$419,685
$419,685
$419,685
$419,685
$419,685
$419,685
$419,685
$419,685
$419,685
$419,685
Property Tax Expense
So
Interest Expense
So
$9,870,991
$920,909
Income Tax Expense
Sol
$5,633,372
Loss on Sale of Buildings
$o
$2,518,110
Other Gains
$o

8 $16,028,480
9
$6,440,606
10
1
12 $3,453,408
13 $1,932,182
14
15
16
17
39
40
Cash
43.
14
45
46
17
28 $23,183,879
30
50
51
52
53
$345,341
$7,728,727
50
61
52
$3,864,364
$2,576,242
$863.352
$4,186,394
48 $10,304,969
19
$4,508,424
$7,084,666
$5,152,485
$8,372,788
$5,796,545
$172,670
$330,952
$419,685
$419,685
$1,107,970 $2,302,272
$2,590,056
$1,208,693
$1,151,136
$419,685
$6,760,046
$419,685
$419,685
$419,685
$2,158,380
$419,685
$27,102,058
$419,685
$1,438,920
$419,685
$719,460
$419,685
$419,685
$419,685
$1,079,190
$1,798,650
$2,590,056
$3,885,084
Accounts Receivable
$17,062,738 $1,107,970
$9,212,002
$2,158,380
$3,453,408
$287,784
$9,870,991
$920,909
$863,352
$402,898
$3,453,408
Accounts Payable
$17,062,738
$9,212,002
$345,341
$172,670
$11,079,700
$2,215,940
$5,539,850
$24.375,340
Common stock
| $17,986,500
Net Revenue
$o
$1,438,920
$2,877,840
$7,194,600
$15,828,120
$3,597,300
$719,460
$4,316,760
$21,511,854
$11,511,360
$359,730
$503,622
$2,086,434
Land
$69,068,160
$12,950,280
$4.316,760
1
J
I
I
Taxes Payable
$6,760,046
Additional Paid-In capital
$53,959,500
$4,004,514
$5,633,372
Advertising Expense
$o
$1,079,190
$2,158,380
$1,438,920
$719,460|
$1,798,650
Buildings
$201,808,530
$40,361,706
$4,748,436
Loan Payable
$70,507,080
Interest Payable
Retained Earnings
$2,590,056
$3,885,084.
$2,158,380
Bad Debt Expense
$o
So
$51,801,120
Accumulated Depreciation
$56,578,334
$1,899,374
$6,475,140
Notes Payable
Dividends
So
$27,102,058
$24,441,830
$51,820,930
Depreciation Expense
$o
$6,475,140

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