Question: journal entries ? 1. ABC COMPANY PURCHASED $500,000 BONDS IN XYZ COMPANY 2. ABC COMPANY PURCHASED $500,000 STOCK IN XYZ COMPANY 3. ABC COMPANY PURCHASED

1. ABC COMPANY PURCHASED $500,000 BONDS IN XYZ COMPANY 2. ABC COMPANY

journal entries ?

1. ABC COMPANY PURCHASED $500,000 BONDS IN XYZ COMPANY 2. ABC COMPANY PURCHASED $500,000 STOCK IN XYZ COMPANY 3. ABC COMPANY PURCHASED 5,000 SHARES OF ITS OWN COMMON STOCK FOR ITS TREASURY. THE PAR VALUE IS $3/SH AND THE SELLING PRICE IS $100/SH 4. BASED ON 3. ABOVE, ABC COMPANY SOLD 1,000 SHARES OF ITS TREASURY STOCK FOR $102/SH 5. ABC COMPANY ISSUED 10,000 SHARES OF ITS COMMON STOCK FOR CASH. PV IS $3/SH AND THE SELLING PRICE IS $99/SH 6. ABC COMPANY ISSUED 10,000 SHARES OF ITS COMMON STOCK IN ITS PURCHASE OF LAND. LAND'S ASKING PRICE IS $500,000. LAND'S SELLING PRICE IS $450,000 PV OF STOCK IS $3/SH SELLING PRICE OF STOCK IS $46/SH 7. ABC COMPANY PAID ITS ATTORNEY $20,000 TO INCORPORATE BUSINESS 8. ABC COMPANY ISSUED $400,000 BONDS FOR 97 9. ABC COMPANY ISSUED $400,000 BONDS FOR 102 10. ABC COMPANY DECLAREDA 2 FOR 1 STOCK SPLIT WHEN PV WAS $3/SH AND THE NUMBER OF SHARES OUTSTANDING WAS 100,000 11. ABC COMPANY DECLARED A 5% STOCK DIVIDEND. PV IS $1.50/SH AND THERE ARE 200,000 SHARES OF COMMON STOCK OUTSTANDING AND THE SELLING PRICE IS $46/SH 1,02 12. DATE OF RECORD FOR 11. ABOVE 13. ISSUED STOCK DIVIDENDS FROM 11. ABOVE 14. DECLAREDA $2 CASH DIVIDEND. THERE ARE 210,000 SHARES OF COMMON STOCK OUTSTANDING. THE COMMON STOCK HAS A $1.50 PAR VALUE PER SHARE AND THE STOCK'S SELLING PRICE IS $46/SH 15. DATE OF RECORD FOR 14. ABOVE 16. PAID 14. ABOVE 17. ON 7/1, RECEIVED INTEREST FROM INVESTMENT YOU PURCHASED. THE ORIGINAL INVESTMENT WAS FOR $300,000, PAYING 10% INTEREST SEMI ANNUALLY ON 7/1 AND 1/1. PREPARE THE JOURNAL ENTRY FOR 7/1 18. BASED ON 17 ABOVE, PREPARE THE JOURNAL ENTRY ON 12/31 19. BASED ON 17 ABOVE, PREPARE THE JOURNAL ENTRY ON 1/1 20. CLOSED OUT $400,000 NET INCOME 21. REALIZED UNDERSTATED DEPRECIATION EXPENSE LAST YEAR BY $2,000

Step by Step Solution

3.46 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Lets go through the journal entries stepbystep Well address several entries from the provided information 1 ABC company purchased 500000 bonds in XYZ ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!