DHI declared and paid the regular dividend on its preferred stock in December 2 0 2 3 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 On June 3 0 , 2 0 2 3 , 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 , 0 0 0 shares of Folton's common stock for $ 1 6 per share Folton has issued a total of 3 , 0 0 0 shares of common stock At year end, the Folton stock was selling for $ 2 0 per share Folton's net income for 2 0 2 3 was $ 9 0 , 0 0 0 DHI received a $ 7 0 0 dividend from Folton in 2 0 2 3 DHI intends to hold on to this stock indefinitely January 1 , 2 0 2 3 , DHI finalized a lease for some much needed equipment The 3 year lease calls for annual payments of $ 2 3 , 0 0 0 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 , 0 0 0 DHI paid the first lease payment when the lease was signed on 1 1 2 0 2 3 The next lease payment is due 1 1 2 0 2 4 The implicit rate on the lease is 6 DHI borrowed $ 5 0 , 0 0 0 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 , 2 0 2 4 Make all entries necessary for this loan for 2 0 2 3 The Note Payable already on DHI ' s books represents a non interesting bearing $ 2 5 0 , 0 0 0 note that was signed 1 1 2 0 2 0 and is payable on 1 2 3 1 2 0 2 4 Record any entries needed related to the note for 2 0 2 3 Record adjusting entries based on the following information a Depreciation on the building for 2 0 2 3 is $ 4 , 5 0 0 b Additional depreciation to be recorded on equipment for 2 0 2 3 is $ 1 , 5 0 0 c A physical inventory count shows that $ 9 1 , 8 0 0 of inventory is still on hand REQUIRED Make the entries needed based on the above information These may be adjusting, correcting or other entries There may be some items that do not require an entry If no entry is needed, please indicate that Prepare the following statements for year end 2 0 2 3 in good form Good form means the statement should be prepared with headings and all appropriate totals and subtotals so they would be ready to send to the company's owners and investors Round all amounts ( except earnings per share ) to the nearest whole dollar a The 2 0 2 3 final trial balance with all account balances from the preliminary trial balance updated for your journal entries b Multiple step Income Statement with the appropriate earnings per share data Round earnings per share data to the nearest cent c Statement of Retained Earnings d Classified Balance Sheet ( including all non current asset sections ) e Statement of Cash Flows using the Indirect Method ( Hint look carefully at the transactions you recorded that affect Net Income without involving cash Net Income may need to be adjusted for these items in the Operating Activities section ) ADDITIONAL INSTRUCTIONS AND POLICIES Your final answer must be submitted in the appropriate drop box in elearn A starting file has been provided for your use You will need to submit your project in this one Excel file The file should contain the following a ) All journal entries on the Journal sheet ( tab ) organized by item, not chronologically Have all the entries for 1 together, then 2 , etc Do not organize by date Show all supporting calculations with the appropriate entry, including any amortization tables The easier I can follow your work, the more points you will get Round all entries to the nearest whole dollar

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DHI declared and paid the regular dividend on its preferred stock in December 2 0 2 3   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  On June 3 0 , 2 0 2 3 , 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 , 0 0 0 shares of Folton's common stock for $ 1 6 per share  Folton has issued a total of 3 , 0 0 0 shares of common stock  At year end, the Folton stock was selling for $ 2 0 per share  Folton's net income for 2 0 2 3 was $ 9 0 , 0 0 0   DHI received a $ 7 0 0 dividend from Folton in 2 0 2 3   DHI intends to hold on to this stock indefinitely  January 1 , 2 0 2 3 , DHI finalized a lease for some much   needed equipment  The 3   year lease calls for annual payments of $ 2 3 , 0 0 0   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 , 0 0 0   DHI paid the first lease payment when the lease was signed on 1 1   2 0 2 3   The next lease payment is due 1 1   2 0 2 4   The implicit rate on the lease is 6     DHI borrowed $ 5 0 , 0 0 0 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 , 2 0 2 4   Make all entries necessary for this loan for 2 0 2 3   The Note Payable already on DHI ' s books represents a non   interesting bearing $ 2 5 0 , 0 0 0 note that was signed 1 1   2 0 2 0 and is payable on 1 2 3 1   2 0 2 4   Record any entries needed related to the note for 2 0 2 3   Record adjusting entries based on the following information  a   Depreciation on the building for 2 0 2 3 is $ 4 , 5 0 0   b   Additional depreciation to be recorded on equipment for 2 0 2 3 is $ 1 , 5 0 0   c   A physical inventory count shows that $ 9 1 , 8 0 0 of inventory is still on hand  REQUIRED  Make the entries needed based on the above information  These may be adjusting, correcting or other entries  There may be some items that do not require an entry  If no entry is needed, please indicate that  Prepare the following statements for year   end 2 0 2 3 in good form   Good form  means the statement should be prepared with headings and all appropriate totals and subtotals so they would be ready to send to the company's owners and investors  Round all amounts ( except earnings per share ) to the nearest whole dollar  a   The 2 0 2 3 final trial balance with all account balances from the preliminary trial balance updated for your journal entries  b   Multiple   step Income Statement with the appropriate earnings per share data  Round earnings per share data to the nearest cent  c   Statement of Retained Earnings d   Classified Balance Sheet ( including all non   current asset sections )   e   Statement of Cash Flows using the Indirect Method  ( Hint  look carefully at the transactions you recorded that affect Net Income without involving cash  Net Income may need to be adjusted for these items in the Operating Activities section  ) ADDITIONAL INSTRUCTIONS AND POLICIES  Your final answer must be submitted in the appropriate drop box in elearn  A starting file has been provided for your use  You will need to submit your project in this one Excel file  The file should contain the following  a ) All journal entries on the Journal sheet ( tab ) organized by item, not chronologically  Have all the entries for   1 together, then   2 , etc  Do not organize by date  Show all supporting calculations with the appropriate entry, including any amortization tables  The easier I can follow your work, the more points you will get  Round all entries to the nearest whole dollar

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Question: DHI declared and paid the regular dividend on its preferred stock in December 2 0 2 3 . DHI's preferred stock is convertible, cumulative preferred

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