On 1/1/20X1, Illini has 20,000 shares of $1 par common stock outstanding.

On 1/1/20X1, Illini Company's executives have 1,000 vested stock options that were awarded as compensation before. These options permit them to buy 1,000 shares of the Illini's $1 par value common stock at an exercise price of $10. The fair value of these options on the original option grant date was estimated at $4 each.

During 20X1 Illini Company reacquires 1,500 common shares as treasury shares as follows:

4/1/20X1	300 shares at $10 each
7/1/20X1	400 shares at $15 each
10/1/20X1	800 shares at $20 each

On April 1, 20X1, Illini issues 1,000 shares of $100 par value 8% convertible cumulative preferred stock. The shares are sold at par value. These shares are convertible into 2,000 common shares.

No dividends are declared in 20X1.

On January 1, 20X2, the stock price is $18 per share, and 500 options are exercised. Assume that Illini reissues treasury shares to satisfy the executives' exercise of options, and that it is using the first-in first-out cost flow method. The average stock price in 20X1 and 20X2 are the same at $16 per share. Assume that there is a zero balance in the APIC- treasury stock account on 1/1/20X1.

During 20X2, Illini Company also has the following transactions:

Feb 1: Issues 1,000 shares of common stock for $15 per share.

April 1: Issues 1,000 shares of common stock in exchange for the right to use a competitor's brand when marketing its products. The stock trades at $16 per share on April 1, 20X2, and independent experts put the value of the brand between $10,000 and $20,000. Please use "brand asset" to record the right.

September 1: Re-issues the remaining 1,000 shares of treasury stock at $16 per share, originally acquired in 20X1.

October 1: Has a 2-for-1 stock split effected in a 100% stock dividend on all outstanding common shares on this date. Hint: record the transaction at the par value of the stock. Assume that the conversion ratios for outstanding convertible bonds and convertible preferred stock would double after the 2-for-1 stock split.

December 31: Declares and pays cash dividends to both preferred and common stockholders. The dividends to common stock holders are 10 cents per share.

Please refer to the instructions and the table in this question. Enter the correct journal entry for part [A].

Date	Account Name		Debit	Credit
4/1/20X1	Treasury stock		[A]
		Cash		[B]
7/1/20X1	Treasury stock		[C]
		Cash		[D]
10/1/20X1	Treasury stock		[E]
		Cash		[F]
4/1/20X1	Cash		[G]
		Preferred stock		[H]
1/1/20X2	Cash		[I]
	APIC - stock options		[J]
		Treasury stock		[K]
		APIC- treasury stock		[L]
2/1/20X2	Cash		[M]
		Common stock		[N]
		APIC		[O]
4/1/20X2	Brand Asset		[P]
		Common stock		[Q]
		APIC		[R]
9/1/20X2	Cash		[S]
	APIC- treasury stock		[T]
	Retained earnings		[U]
		Treasury stock		[V]
10/1/20X2	Retained earnings		[W]
		Common stock		[X]
12/31/20X2	Retained earnings		[Y]
		Cash		[Z]

1 point

2.

Question 2

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [B].

1 point

3.

Question 3

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [C].

1 point

4.

Question 4

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [D].

1 point

5.

Question 5

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [E].

1 point

6.

Question 6

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [F].

1 point

7.

Question 7

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [G].

1 point

8.

Question 8

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [H].

1 point

9.

Question 9

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [I].

1 point

10.

Question 10

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [J].

1 point

11.

Question 11

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [K].

1 point

12.

Question 12

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [L].

1 point

13.

Question 13

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [M].

1 point

14.

Question 14

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [N].

1 point

15.

Question 15

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [O].

1 point

16.

Question 16

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [P].

1 point

17.

Question 17

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [Q].

1 point

18.

Question 18

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [R].

1 point

19.

Question 19

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [S].

1 point

20.

Question 20

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [T].

1 point

21.

Question 21

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [U].

1 point

22.

Question 22

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [V].

1 point

23.

Question 23

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [W].

1 point

24.

Question 24

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [X].

1 point

25.

Question 25

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [Y].

1 point

26.

Question 26

Please refer to the instructions and the table in Question 1. You may also view it as a reading or download on a separate tab or browser. Enter the correct journal entry for part [Z].

1 point

Answer rating: 100% (QA)

Answer Here are the journal entries for the given transactions A Tr... View the full answer