Journal Entries A. Issued 2000 shares of $10 par common stock at $11, receiving cash. B....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Journal Entries A. Issued 2000 shares of $10 par common stock at $11, receiving cash. B. Issued $ 40000 of 10 year 10% bonds at a market (effective) interest rate of 9%, with interest payable semiannually. Use the Present Value Tables in Appendix A of text book. Round all calculations to the nearest dollar. C. Declared a dividend of $0.25 per share on common stock. On date of declaration, 6400 shares of common stock were outstanding. D. Paid cash dividend from (c) above. E. Purchased 2400 shares of Jones Company for $10 per share, plus $1200 commission. Our company purchased less than 20% of the outstanding stock of Jones Company. F. Declared a 5% stock dividend on the $10 par common stock when the market price was $ 25 per share. There were 6400 Shares outstanding. G. Distributed the stock dividends declared in (F). H. Purchased $5000 of 5% bonds at par. Interest is payable semiannually. 1. Purchased 120 shares of treasury common stock for $12 per share. J. Received semiannual interest from bonds purchased in (H). K. Received a total cash dividend of $240 from Jones Company. L. Received a $400 dividend from our investment in Masco Company stock. This investment is accounted for under the equity method. M. Sold, at $17 per share, 60 shares of treasury common stock purchased in (1). N. Sold 480 shares of Jones company stock purchased in (E) for $13 per share, including commission. O. Masco Company's total earnings are $20000. We own 40%. Record the earnings for our company using the equity method. P. Sold the bonds purchased in (H) at 103 plus $63 in accrued interest. (6 points) (6 points) (3 points) (2 points) (3 points) (6 points) (2 points) (3 points) (3 points) (3 points) (3 points) (3 points) (6 points) (6 points) (3 points) (8 points) Q. At the end of the accounting period, the remaining shares of Jones Company stock increased $2.00 per share R. Record the payment of semiannual interest on the bonds issued in (B) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Round all calculations to the nearest dollar. (3 Points) (6 points) Part 2 Instructions: Page 2 The balances listed below are for December 31 and already include the journal entries you just prepared except for the stockholders' equity accounts. The balances listed for the stockholders' equity accounts are the January 1 balances. You will need to utilize the journal entries you just prepared to complete the Statement of Stockholders' Equity. Prepare a multistep income statement, a statement of stockholders' equity, and a classified balance sheet in good form for the year ended December 31, 20X1. Use the Student Input Form (Excel File) to complete the Financial Statements Debit Credit Cash Accounts receivable Allowance for doubtful accounts Equity Investments at cost Valuation allowance for Equity Investments Merchandise inventory at lower of cost (FIFO) or market Prepaid expenses Interest receivable Investment in Masco Company stock Store buildings and equipment Accumulated depreciation-store buildings and equipment Accounts payable Income tax payable Bonds payable, 10%, due in 10 years Premium on bonds payable Retained earnings, January 1, 20X1 Cash dividends, January 1, 20X1 balance Stock Dividends, January 1, 20X1 balance Common stock, $10 par (100,000 shares authorized; 4400 shares outstanding), January 1, 20X1 Paid-in capital in excess of par-common stock, January 1, 20X1 Paid-in capital from sale of treasury stock, January 1, 20X1 Treasury stock, January 1, 20X1 Sales Gain from sale of investment Unrealized gain (loss) on Equity Investments Dividend revenue Interest revenue Income of Masco Company Cost of goods sold 120,000 79,000 20,000 8,000 1,200 800 6,000 122,000 0 0 0 160,000 4,000 2,000 60,000 32,960 2,000 40,000 2,000 91,220 44,000 4,400 0 280,000 400 3,840 320 1,080 8,000 Advertising expense Depreciation expense—store buildings and equipment Miscellaneous selling expenses Sales commissions Office rent expense Office salaries expense Miscellaneous administrative expenses Interest expense Income tax expense $4,000 2,800 2,000 8,000 20,000 24,000 400 2,000 16,000 Journal Entries 2-8 points each (75 points) ABC Corporation, Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20X1 Common Stock Balances, January 1 Issued common stock Net income Cash dividends Stock dividends Sale of treasury stock Purchase of treasruy stock Balances December 31 Paid-in Capital in Excess of Par - Common Stock (12 points) Paid-in Capital from sale of Treasury Stock Retained Earnings Treasury Stock 0 Page 6 Total ABC Corporation, Inc. Balance Sheet December 31, 20X1 Assets Liabilities (36 points) Page 7 Stockholders' Equity Journal Entries A. Issued 2000 shares of $10 par common stock at $11, receiving cash. B. Issued $ 40000 of 10 year 10% bonds at a market (effective) interest rate of 9%, with interest payable semiannually. Use the Present Value Tables in Appendix A of text book. Round all calculations to the nearest dollar. C. Declared a dividend of $0.25 per share on common stock. On date of declaration, 6400 shares of common stock were outstanding. D. Paid cash dividend from (c) above. E. Purchased 2400 shares of Jones Company for $10 per share, plus $1200 commission. Our company purchased less than 20% of the outstanding stock of Jones Company. F. Declared a 5% stock dividend on the $10 par common stock when the market price was $ 25 per share. There were 6400 Shares outstanding. G. Distributed the stock dividends declared in (F). H. Purchased $5000 of 5% bonds at par. Interest is payable semiannually. 1. Purchased 120 shares of treasury common stock for $12 per share. J. Received semiannual interest from bonds purchased in (H). K. Received a total cash dividend of $240 from Jones Company. L. Received a $400 dividend from our investment in Masco Company stock. This investment is accounted for under the equity method. M. Sold, at $17 per share, 60 shares of treasury common stock purchased in (1). N. Sold 480 shares of Jones company stock purchased in (E) for $13 per share, including commission. O. Masco Company's total earnings are $20000. We own 40%. Record the earnings for our company using the equity method. P. Sold the bonds purchased in (H) at 103 plus $63 in accrued interest. (6 points) (6 points) (3 points) (2 points) (3 points) (6 points) (2 points) (3 points) (3 points) (3 points) (3 points) (3 points) (6 points) (6 points) (3 points) (8 points) Q. At the end of the accounting period, the remaining shares of Jones Company stock increased $2.00 per share R. Record the payment of semiannual interest on the bonds issued in (B) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Round all calculations to the nearest dollar. (3 Points) (6 points) Part 2 Instructions: Page 2 The balances listed below are for December 31 and already include the journal entries you just prepared except for the stockholders' equity accounts. The balances listed for the stockholders' equity accounts are the January 1 balances. You will need to utilize the journal entries you just prepared to complete the Statement of Stockholders' Equity. Prepare a multistep income statement, a statement of stockholders' equity, and a classified balance sheet in good form for the year ended December 31, 20X1. Use the Student Input Form (Excel File) to complete the Financial Statements Debit Credit Cash Accounts receivable Allowance for doubtful accounts Equity Investments at cost Valuation allowance for Equity Investments Merchandise inventory at lower of cost (FIFO) or market Prepaid expenses Interest receivable Investment in Masco Company stock Store buildings and equipment Accumulated depreciation-store buildings and equipment Accounts payable Income tax payable Bonds payable, 10%, due in 10 years Premium on bonds payable Retained earnings, January 1, 20X1 Cash dividends, January 1, 20X1 balance Stock Dividends, January 1, 20X1 balance Common stock, $10 par (100,000 shares authorized; 4400 shares outstanding), January 1, 20X1 Paid-in capital in excess of par-common stock, January 1, 20X1 Paid-in capital from sale of treasury stock, January 1, 20X1 Treasury stock, January 1, 20X1 Sales Gain from sale of investment Unrealized gain (loss) on Equity Investments Dividend revenue Interest revenue Income of Masco Company Cost of goods sold 120,000 79,000 20,000 8,000 1,200 800 6,000 122,000 0 0 0 160,000 4,000 2,000 60,000 32,960 2,000 40,000 2,000 91,220 44,000 4,400 0 280,000 400 3,840 320 1,080 8,000 Advertising expense Depreciation expense—store buildings and equipment Miscellaneous selling expenses Sales commissions Office rent expense Office salaries expense Miscellaneous administrative expenses Interest expense Income tax expense $4,000 2,800 2,000 8,000 20,000 24,000 400 2,000 16,000 Journal Entries 2-8 points each (75 points) ABC Corporation, Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20X1 Common Stock Balances, January 1 Issued common stock Net income Cash dividends Stock dividends Sale of treasury stock Purchase of treasruy stock Balances December 31 Paid-in Capital in Excess of Par - Common Stock (12 points) Paid-in Capital from sale of Treasury Stock Retained Earnings Treasury Stock 0 Page 6 Total ABC Corporation, Inc. Balance Sheet December 31, 20X1 Assets Liabilities (36 points) Page 7 Stockholders' Equity
Expert Answer:
Answer rating: 100% (QA)
General Journal Account Titles and Explanation A Cash 200011 Common stock 200010 PaidIn excess ... View the full answer
Related Book For
Financial & Managerial Accounting
ISBN: 978-1337902663
15th edition
Authors: Carl Warren, Jefferson P. Jones, William B. Tayler
Posted Date:
Students also viewed these accounting questions
-
Use the present value tables in Appendix A and Appendix B to compute the NPV of each of the following cash inflows. a. $18,300 received at the end of 15 years. The discount rate is 5 percent. b....
-
Use the present value tables in Appendix A and Appendix B to compute the NPV of each of the following cash inflows. a. $89,000 received at the end of six years. The discount rate is 4 percent. b....
-
What is the normality of a solution that contains 15g of Ca ( OH ) 2 dissolved in 850mL ?
-
The management accountant is preparing the master budget for her retail firm. The following information has been supplied Sales $300,000 Opening inventory $40,000 Closing inventory $60,000 Required...
-
Suppose that dividends are growing at 3%. If today's dividend is $2.5 and the required rate of return is 8%, determine P0, P5, P8.
-
Calculate G, for the reaction A + B C + D at 25C when the equilibrium concentrations are [A] = 10 M, [B] = 15 M, [C] = 3 M, and [D] = 5 M. Is the reaction exergonic or endergonic under standard...
-
Organizations' increasing use of the Internet has had least impact on: a. The overall structure of the approach used to conduct an information systems audit b. Exposures associated with the quality...
-
A partner in the national accounting firm mentioned in the previous questions does not believe that the time estimates for each activity can be specified with certainty. Instead, she prefers to...
-
RSA Corporation had the following items in inventory as at December 31, 2023 Unit Item No. Quantity Cost NRV 2 03 2108 A1 100 $3.00 $3.30 84 120 2.00 1.90 140 8.00 9.00 160 7.00 6.80 Assume that RSA...
-
Mack Banta, a nonexempt account representative, worked extra hours this week as a call operator. A number of operators were out for the week and Banta was asked to pick up some of their hours. Can...
-
You are required to answer all the following questions using Sage/Python. Note that all values provided in this task are in decimal and that p and q are prime numbers. Assume that p= H ...
-
What controls are important in protecting inventories and maintaining the correctness of inventory balances?
-
What controls are important in determining and recording manufacturing costs?
-
The only sensible way to organise a sales force is by geographical region. All other methods are not cost-efficient. Discuss.
-
Indicate several ratios and their formulas that may be used in applying analytical procedures to inventory balances.
-
a. What procedures should be performed to obtain evidence about the reasonableness of management's accrued payroll liabilities? b. Why is officers' compensation audit sensitive and what tests should...
-
https://www.youtube.com/watch?v=aOymOiQdNaE Using the first video on Facebook notes that in 2019, Facebook had over 2.2 billion users on their social media platform. With this and the other videos in...
-
Explain why each of the following is either a private good or a public good: traffic lights, in line skates, a city park, a chicken salad sandwich, a tennis racket, national defense, a coastal...
-
On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and sold 12,000 units. The following income statement was prepared, based on the variable costing...
-
In teams, select a public company that interests you. Obtain the companys most recent annual report on Form 10-K. The Form 10-K is a companys annually required filing with the Securities and Exchange...
-
Rosies Roses produces three colors of roses: red, white, and peach. The roses are produced jointly in the same garden, and aggregately cost a total of $110 per harvest. One harvest produces 80 red...
-
Imagine that the market yield to maturity for three-year bonds in a particular risk class is 12 percent. You buy a bond in that risk class which offers an annual coupon of 10 per cent for the next...
-
Discuss some of the consequences you believe might follow from the shift in UK share ownership over the past 30 years.
-
The price of a bond issued by C & M plc is 85.50 per cent of par value. The bond will pay an annual 8.5 per cent coupon until maturity (the next coupon will be paid in one year). The bond matures in...
Study smarter with the SolutionInn App