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(Solved): The Murdock Corporation (MC) reported the following balance sheet data for 2022 and 2021: Additiona ...
The Murdock Corporation (MC) reported the following balance sheet data for 2022 and 2021: Additional information for 2022: (1.) Sold available-for-sale debt securities costing $69,500 for $74,000. (2.) Equipment costing $20,000 with a book value of $5,000 was sold for $6,000. (3.) Issued 6% bonds payable at face value, $200,000. (4.) Purchased new equipment for $145,000 cash. (5.) Paid cash dividends of $20,000. (6.) Net income was $50,000.
1) For the additional information provided above, show all the journal entries and classify each transaction in the correct category (operating, investing, financing). 2) Using a T-account, show how to estimate the depreciation expense for 2021. 3) Using a T-account, show how to reconcile the Retained Earnings account.