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

$

$

$

$

Transcribed Image Text: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

Question

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

Accepted Answer

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