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

Transcribed Image Text: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
Transcribed Image Text: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

Question

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

Accepted Answer

In the books of Zinc. Inc
Journal entries :

Date 
Particulars

Debit amount
($)

Credit…