Best Value Corporation's Trial balance as of December 31,2020 is presented below. All 2020 transactions have been recorded except for the items described below.

Cash Debit $34,890

Accounts Receivable Debit $28,789

Inventory Debit $ 25,540

Land Debit $55,674

Buildings Debit $275,850

Equipment Debit $55,120

Allowance for Doubtful Accounts Credit $1,027

Accumulated Depreciation-Buildings Credit $ 63,306

Accumulated Depreciation- Equipment Credit $16,048

Accounts Payable Credit $35,278

Interest Payable Credit $0

Dividends Payable Credit $ 0

Unearned Rent Revenue Credit $48,900

Income Tax Payable Credit $0

Bonds Payable Credit $0

Discount on Bonds Payable Debit $0

Common Stock ($2 par) Credit $ 29,200

Paid in Capital in Excess of Par- Common Stock Credit $44,580

Preferred Stock ($60 par) Credit $0

Paid in Capital in Excess of Par-Preferred Stock Credit $0

Retained Earnings Credit $107,904

Treasury Stock Debit $0

Cash Dividends Debit $0

Sales Revenue Credit $676,068

Rent Revenue Credit $0

Bad Debt Expense Debit $0

Interest Expense Debit $0

Cost of Goods Sold Debit $413,542

Depreciation Expense Debit $0

Other Operating Expenses Debit $53,274

Salaries and Wages Expense Debit $79,632

Income Tax Expense Debit $0

Total Debits $1,022,311

Total Credits $1,022,311

Unrecorded Transactions: Round all calculations if necessary to 0 decimals (to the nearest dollar, do not show cents.)

1. On January 1,2020, BestValue Issued 520 shares of $60 par, 5% preferred stock for $75,810.

2. On January 1,2020, BestValue also issued 5,800 shares of common stock for $42,050.

3. On January 1,2020 BestValue issued $325,000, 5.5 %, 9 year bonds when the market rate was 6%. Interest is to be paid annually on each January 1, beginning 1 year from date of issue.

4. BestValue reaquired 3,600 shares of its common stock on January 12,2020 for $8.50 per share.

5. On December 31,2020, BestValue declared the annual preferred dividend plus a $2.75 per share dividend on the outstanding common stock, all payable in cash on January 31,2021.

6. On December 31,2020 BestValue estimates that the total amount of accounts receivable that is uncollectible at year end is $1,850.

7. The Building is being depreciated using the straight line method over 25 years. The salvage value is $100,000.

8. The equipment is being depreciated using the straight line method over 5 years. The salvage value is &15,000.

9. The unearned rent was collected on December 1,2020. It was receipt of 3 months rent in advance(December 1,2020 through February 28,2021).

10. The first cash interest payment on the 5.5% bonds is due January 1, 2021. The annual interest on the bonds for 2020 has not yet been recorded. BestValue uses the effective interest method.

11. The BestValue Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 26%. The income taxes will not be paid until March 2021.

Instructions:

(a) Prepare journal entries for the transactions listed above.

(b) Prepare an updated December 31,2020 trial balance.

(c) Prepare a multiple- step income statement for the year ending December 31,2020.

(d) Prepare a retained earnings statement for the year ending December 31,2020.

(e) Prepare a classified balance sheet as of December 31,2020.

(f) Calculate the following ratios, clearly presenting your work and answers:

1. Working capital

2. Current ratio

3. Return on Stockholder's Equity(use ending Common Stockholder's Equity)

4. EPS(all shares are already weighted)

5. Debt to assets ratio

6. Times interest earned ratio