11. DHI declared and paid the regular dividend on its preferred stock in December 2023. DHI's...

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11. DHI declared and paid the regular dividend on its preferred stock in December 2023. DHI's preferred stock is convertible, cumulative preferred stock. There are no dividends in arrears. Each share of preferred stock can be converted into 4 shares of common stock. To date, none of the preferred stock has been converted. 12. On June 30, 2023, DHI purchased stock of Folton Security Systems. DHI wanted to establish a relationship with this company because Folton sells and installs smart home security systems. DHI purchased 1,000 shares of Folton's common stock for $16 per share. Folton has issued a total of 3,000 shares of common stock. At year end, the Folton stock was selling for $20 per share. Folton's net income for 2023 was $90,000. DHI received a $700 dividend from Folton in 2023. DHI intends to hold on to this stock indefinitely. 13. January 1, 2023, DHI finalized a lease for some much-needed equipment. The 3-year lease calls for annual payments of $23,000. At the end of the lease, DHI will own the equipment. The useful life of the equipment is 7 years and the expected salvage value at that time is $1,000. DHI paid the first lease payment when the lease was signed on 1/1/2023. The next lease payment is due 1/1/2024. The implicit rate on the lease is 6%. 14. DHI borrowed $50,000 from First National Bank on December 1. This is a 4-year installment loan with monthly payments. The interest rate on the loan is 7%. The first payment is due on January 1, 2024. Make all entries necessary for this loan for 2023. 15. The Note Payable already on DHI's books represents a non-interesting bearing $250,000 note that was signed 1/1/2020 and is payable on 12/31/2024. Record any entries needed related to the note for 2023. 16. Record adjusting entries based on the following information: a. Depreciation on the building for 2023 is $4,500. b. Additional depreciation to be recorded on equipment for 2023 is $1,500. c. A physical inventory count shows that $91,800 of inventory is still on hand. 11. DHI declared and paid the regular dividend on its preferred stock in December 2023. DHI's preferred stock is convertible, cumulative preferred stock. There are no dividends in arrears. Each share of preferred stock can be converted into 4 shares of common stock. To date, none of the preferred stock has been converted. 12. On June 30, 2023, DHI purchased stock of Folton Security Systems. DHI wanted to establish a relationship with this company because Folton sells and installs smart home security systems. DHI purchased 1,000 shares of Folton's common stock for $16 per share. Folton has issued a total of 3,000 shares of common stock. At year end, the Folton stock was selling for $20 per share. Folton's net income for 2023 was $90,000. DHI received a $700 dividend from Folton in 2023. DHI intends to hold on to this stock indefinitely. 13. January 1, 2023, DHI finalized a lease for some much-needed equipment. The 3-year lease calls for annual payments of $23,000. At the end of the lease, DHI will own the equipment. The useful life of the equipment is 7 years and the expected salvage value at that time is $1,000. DHI paid the first lease payment when the lease was signed on 1/1/2023. The next lease payment is due 1/1/2024. The implicit rate on the lease is 6%. 14. DHI borrowed $50,000 from First National Bank on December 1. This is a 4-year installment loan with monthly payments. The interest rate on the loan is 7%. The first payment is due on January 1, 2024. Make all entries necessary for this loan for 2023. 15. The Note Payable already on DHI's books represents a non-interesting bearing $250,000 note that was signed 1/1/2020 and is payable on 12/31/2024. Record any entries needed related to the note for 2023. 16. Record adjusting entries based on the following information: a. Depreciation on the building for 2023 is $4,500. b. Additional depreciation to be recorded on equipment for 2023 is $1,500. c. A physical inventory count shows that $91,800 of inventory is still on hand.