Question

Hello, I need help with the boxes in red please:

Carla Vista 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 Accounts Receivable Inventory Land Buildings Equipment Allowance for Doubtful Accounts Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment $27,300 59,000 23,100 62,800 104,400 43,000 Accounts Payable Interest Payable Dividends Payable Unearned Rent Revenue Bonds Payable (10%) Common Stock ($10 par) Paid-in Capital in Excess of Par-Common Stock Preferred Stock ($20 par) Paid-in Capital in Excess of Par-Preferred Stock $450 33,000 12,800 19,000 -0- -0- 8,400 46,000 26,000 5,200 -0- -0- 88,750 Retained Earnings Treasury Stock Cash Dividends Sales Revenue 575,000 -0- Rent Revenue Bad Debt Expense Interest Expense Cost of Goods Sold -0- -0- 389,000 -0- 38,200 67,800 Depreciation Expense Other Operating Expenses Salaries and Wages Expense Total $814,600 $814,600 Unrecorded transactions and adjustments: 1. On January 1, 2020, Carla Vista issued 1,100 shares of $20 par, 6% preferred stock for $25,300 2. On January 1, 2020, Carla Vista also issued 1,100 shares of common stock for $27,500. 3. Carla Vista reacquired 310 shares of its common stock on July 1, 2020, for $50 per share. 4. On December 31, 2020, Carla Vista 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. Carla Vista estimates that uncollectible accounts receivable at year-end is $5,900 6. The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,400. 7. The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,300. 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.)

Answer 1

Credit Calculation Carla Vista Corporation Journal entries No. Date Account 1 1-Jan Cash Preferred Stock Paid in Capital in Excess of Par-Preferred Stock Debit $ 25,300 =1,100*20 $ $ 22,000 3,300 2 $ 27,500 1-Jan Cash Common Stock Paid in Capital in Excess of Par-Common Stock =1,100*10 $ 11,000 $ 16,500 3 $ 15,500 =310*50 1-Jul Treasury Stock Cash $ 15,500 4 $ 5,727 =(22,000*6%)+(((26,000/10)+1,100-310) *1.30) 31-Dec Cash Dividends Dividends Payable $ 5,727 5 $ 5,450 =5,900-450 31-Dec Bad debts expense Allowance for doubful accounts $ 5,450 6 $ 3,300 =(104,400-5,400)/30 31-Dec Depreciation expense Accumulated Depreciation-Buildings $ 3,300 7 $ 3,870 =(43,000-4,300)/10 31-Dec Depreciation expense Accumulated Depreciation Equipment $ 3,870 8 $ 6,300 =8,400/4*3 31-Dec Unearned Rent Revenue Rent Revenue $ 6,300 9 $ 4,600 =46,000*10% 31-Dec Interest expense Interest Payable $ 4,600

Carla Vista Corporation T Accounts Date Debit Date Credit Cash Op bal $ 27,300 1-Jan $ 25,300 1-Jan $ 27,500 1-Jul $ 15,500 Bal. $ 64,600