| Bookland Corporation |
| Trial Balance |
| December 31, 2014 |
| | | Debit | | Credit |
| Cash | | $ 23,000 |
| Accounts Receivable | | $ 51,000 |
| Allowance for Doubtful Accounts | | | | $ 450 |
| Inventory | | $ 22,700 |
| Land | | $ 65,000 |
| Buildings | | $ 95,000 |
| Accumulated Depreciation - Buildings | | | | $ 30,000 |
| Equipment | | $ 40,000 |
| Accumulated Depreciation - Equipment | | | | $ 14,400 |
| Accounts Payable | | | | $ 19,300 |
| 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 |
| Sales Revenue | | | | $ 570,000 |
| Rent Revenue | | | | $ - 0 |
| Bad Debts Expense | | $ - 0 |
| Interest Expense | | $ 2,500 |
| Cost of Goods Sold | | $ 400,000 |
| Depreciation Expense | | $ - 0 |
| Other Operating Expenses | | $ 39,000 |
| Salaries and Wages Expense | | $ 65,000 |
| | Total | $ 803,200 | | $ 803,200 |
| Unrecorded transactions: |
| 1. On January 1, 2014, Bookland issued 2,000 shares of $20 par, 6% preferred stock for $44,000. |
| 2. On January 1, 2014, Bookland also issued 3,000 shares of common stock for $75,000. |
| 3. Bookland reacquired 500 shares of its common stock on July 1, 2014 for $49 per share. |
| 4. On December 31, 2014, Bookland declared the annual preferred stock dividend and a $1.50 |
| per share dividend on the outstanding common stock, all payable on January 15, 2015. |
| 5. Bookland estimates that uncollectible accounts receivable at year end is $5,100. |
| 6. The building is being depreciated using the straight line method over 30 years. The salvage |
| value is $5,000. |
| 7. The equipment is being depreciated using the straight line method over 10 years. The salvage |
| value is $4,000. |
| 8. The unearned rent was collected on October 1, 2014. It was receipt of 4 months' rent in |
| advance (October 1, 2014 through January 31, 2015). |
| 9. Bookland employs 5 people, each of whom earn $3,000 per month and have been employed since |
| January 1. FICA Social Security taxes are 6.2% of the first $110,100 paid to each employee, & Medicare |
| taxes are 1.45%. FUTA taxes are .8% and SUTA taxes are 5.4% of the first $7,000 paid to each employee. |
| Record the employer tax expense for December, 2014. |
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comp_2.xls
