Question: Comprehensive Problem 4 Part 1: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows: 1. Journalize
Comprehensive Problem 4 Part 1:
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows:
1. Journalize the selected transactions.
If no entry is required, select "No entry required" from the dropdown. If an amount box does not require an entry, leave it blank.
a. Issued 15,000 shares of $20 par common stock at $30, receiving cash.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 2 | fill in the blank 3 | |
| fill in the blank 5 | fill in the blank 6 | |
| fill in the blank 8 | fill in the blank 9 |
b. Issued 4,000 shares of $80 par preferred $1 stock at $100, receiving cash.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 11 | fill in the blank 12 | |
| fill in the blank 14 | fill in the blank 15 | |
| fill in the blank 17 | fill in the blank 18 |
c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 20 | fill in the blank 21 | |
| fill in the blank 23 | fill in the blank 24 | |
| fill in the blank 26 | fill in the blank 27 |
d. Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held and 20,000 shares of preferred stock were outstanding.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 29 | fill in the blank 30 | |
| fill in the blank 32 | fill in the blank 33 | |
| Common stock | ||
| fill in the blank 35 | fill in the blank 36 | |
| fill in the blank 38 | fill in the blank 39 | |
| Preferred stock |
e. Paid the cash dividends declared in (d).
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 41 | fill in the blank 42 | |
| fill in the blank 44 | fill in the blank 45 |
f. Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 47 | fill in the blank 48 | |
| fill in the blank 50 | fill in the blank 51 |
g. Purchased 8,000 shares of treasury common stock at $33 per share.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 53 | fill in the blank 54 | |
| fill in the blank 56 | fill in the blank 57 |
h. Purchased 40,000 shares of Pinkberry Co.s common stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 59 | fill in the blank 60 | |
| fill in the blank 62 | fill in the blank 63 |
i. Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 65 | fill in the blank 66 | |
| fill in the blank 68 | fill in the blank 69 |
j. Paid the cash dividends to the preferred stockholders.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 71 | fill in the blank 72 | |
| fill in the blank 74 | fill in the blank 75 |
k. Received $27,500 dividend from Pinkberry Co. investment in (h).
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 77 | fill in the blank 78 | |
| fill in the blank 80 | fill in the blank 81 |
l. Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of $375. The bonds are a held-to-maturity investment.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 83 | fill in the blank 84 | |
| fill in the blank 86 | fill in the blank 87 | |
| fill in the blank 89 | fill in the blank 90 |
m. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (g).
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 92 | fill in the blank 93 | |
| fill in the blank 95 | fill in the blank 96 | |
| fill in the blank 98 | fill in the blank 99 |
n. Received interest of $6,000 from the Solstice Corp. investment in (f).
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 101 | fill in the blank 102 | |
| fill in the blank 104 | fill in the blank 105 |
o. Sold Solstice Corp. bonds with a face value of $40,020 for $45,000, realizing a gain of $4,980.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 107 | fill in the blank 108 | |
| fill in the blank 110 | fill in the blank 111 | |
| fill in the blank 113 | fill in the blank 114 |
p. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for 6 months. The amortization is determined using the straight-line method.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 116 | fill in the blank 117 | |
| fill in the blank 119 | fill in the blank 120 | |
| fill in the blank 122 | fill in the blank 123 |
q. Accrued interest for 3 months on the Dream Inc. bonds purchased in (l).
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 125 | fill in the blank 126 | |
| fill in the blank 128 | fill in the blank 129 |
r. Pinkberry Co. reported total earnings of $240,000. Equinox Products recorded its share of Pinkberry Co. net income using the equity method.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 131 | fill in the blank 132 | |
| fill in the blank 134 | fill in the blank 135 |
s. The Solstice Corp. bonds have a fair value of $253,630 on December 31, 20Y5. Valuation Allowance for Available-for-Sale Investments had a balance of zero on January 1, 20Y5.
| Description | Debit | Credit |
|---|---|---|
| fill in the blank 137 | fill in the blank 138 | |
| fill in the blank 140 | fill in the blank 141 |
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