Journal Entries A. Issued 2000 shares of $10 par common stock at $11, receiving cash. B....

 
 
 
 
 
 
 
 

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Journal Entries A. Issued 2000 shares of $10 par common stock at $11, receiving cash. B. Issued $ 40000 of 10 year 10% bonds at a market (effective) interest rate of 9%, with interest payable semiannually. Use the Present Value Tables in Appendix A of text book. Round all calculations to the nearest dollar. C. Declared a dividend of $0.25 per share on common stock. On date of declaration, 6400 shares of common stock were outstanding. D. Paid cash dividend from (c) above. E. Purchased 2400 shares of Jones Company for $10 per share, plus $1200 commission. Our company purchased less than 20% of the outstanding stock of Jones Company. F. Declared a 5% stock dividend on the $10 par common stock when the market price was $ 25 per share. There were 6400 Shares outstanding. G. Distributed the stock dividends declared in (F). H. Purchased $5000 of 5% bonds at par. Interest is payable semiannually. 1. Purchased 120 shares of treasury common stock for $12 per share. J. Received semiannual interest from bonds purchased in (H). K. Received a total cash dividend of $240 from Jones Company. L. Received a $400 dividend from our investment in Masco Company stock. This investment is accounted for under the equity method. M. Sold, at $17 per share, 60 shares of treasury common stock purchased in (1). N. Sold 480 shares of Jones company stock purchased in (E) for $13 per share, including commission. O. Masco Company's total earnings are $20000. We own 40%. Record the earnings for our company using the equity method. P. Sold the bonds purchased in (H) at 103 plus $63 in accrued interest. (6 points) (6 points) (3 points) (2 points) (3 points) (6 points) (2 points) (3 points) (3 points) (3 points) (3 points) (3 points) (6 points) (6 points) (3 points) (8 points) Q. At the end of the accounting period, the remaining shares of Jones Company stock increased $2.00 per share R. Record the payment of semiannual interest on the bonds issued in (B) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Round all calculations to the nearest dollar. (3 Points) (6 points) Part 2 Instructions: Page 2 The balances listed below are for December 31 and already include the journal entries you just prepared except for the stockholders' equity accounts. The balances listed for the stockholders' equity accounts are the January 1 balances. You will need to utilize the journal entries you just prepared to complete the Statement of Stockholders' Equity. Prepare a multistep income statement, a statement of stockholders' equity, and a classified balance sheet in good form for the year ended December 31, 20X1. Use the Student Input Form (Excel File) to complete the Financial Statements Debit Credit Cash Accounts receivable Allowance for doubtful accounts Equity Investments at cost Valuation allowance for Equity Investments Merchandise inventory at lower of cost (FIFO) or market Prepaid expenses Interest receivable Investment in Masco Company stock Store buildings and equipment Accumulated depreciation-store buildings and equipment Accounts payable Income tax payable Bonds payable, 10%, due in 10 years Premium on bonds payable Retained earnings, January 1, 20X1 Cash dividends, January 1, 20X1 balance Stock Dividends, January 1, 20X1 balance Common stock, $10 par (100,000 shares authorized; 4400 shares outstanding), January 1, 20X1 Paid-in capital in excess of par-common stock, January 1, 20X1 Paid-in capital from sale of treasury stock, January 1, 20X1 Treasury stock, January 1, 20X1 Sales Gain from sale of investment Unrealized gain (loss) on Equity Investments Dividend revenue Interest revenue Income of Masco Company Cost of goods sold 120,000 79,000 20,000 8,000 1,200 800 6,000 122,000 0 0 0 160,000 4,000 2,000 60,000 32,960 2,000 40,000 2,000 91,220 44,000 4,400 0 280,000 400 3,840 320 1,080 8,000 Advertising expense Depreciation expense—store buildings and equipment Miscellaneous selling expenses Sales commissions Office rent expense Office salaries expense Miscellaneous administrative expenses Interest expense Income tax expense $4,000 2,800 2,000 8,000 20,000 24,000 400 2,000 16,000 Journal Entries 2-8 points each (75 points) ABC Corporation, Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20X1 Common Stock Balances, January 1 Issued common stock Net income Cash dividends Stock dividends Sale of treasury stock Purchase of treasruy stock Balances December 31 Paid-in Capital in Excess of Par - Common Stock (12 points) Paid-in Capital from sale of Treasury Stock Retained Earnings Treasury Stock 0 Page 6 Total ABC Corporation, Inc. Balance Sheet December 31, 20X1 Assets Liabilities (36 points) Page 7 Stockholders' Equity Journal Entries A. Issued 2000 shares of $10 par common stock at $11, receiving cash. B. Issued $ 40000 of 10 year 10% bonds at a market (effective) interest rate of 9%, with interest payable semiannually. Use the Present Value Tables in Appendix A of text book. Round all calculations to the nearest dollar. C. Declared a dividend of $0.25 per share on common stock. On date of declaration, 6400 shares of common stock were outstanding. D. Paid cash dividend from (c) above. E. Purchased 2400 shares of Jones Company for $10 per share, plus $1200 commission. Our company purchased less than 20% of the outstanding stock of Jones Company. F. Declared a 5% stock dividend on the $10 par common stock when the market price was $ 25 per share. There were 6400 Shares outstanding. G. Distributed the stock dividends declared in (F). H. Purchased $5000 of 5% bonds at par. Interest is payable semiannually. 1. Purchased 120 shares of treasury common stock for $12 per share. J. Received semiannual interest from bonds purchased in (H). K. Received a total cash dividend of $240 from Jones Company. L. Received a $400 dividend from our investment in Masco Company stock. This investment is accounted for under the equity method. M. Sold, at $17 per share, 60 shares of treasury common stock purchased in (1). N. Sold 480 shares of Jones company stock purchased in (E) for $13 per share, including commission. O. Masco Company's total earnings are $20000. We own 40%. Record the earnings for our company using the equity method. P. Sold the bonds purchased in (H) at 103 plus $63 in accrued interest. (6 points) (6 points) (3 points) (2 points) (3 points) (6 points) (2 points) (3 points) (3 points) (3 points) (3 points) (3 points) (6 points) (6 points) (3 points) (8 points) Q. At the end of the accounting period, the remaining shares of Jones Company stock increased $2.00 per share R. Record the payment of semiannual interest on the bonds issued in (B) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Round all calculations to the nearest dollar. (3 Points) (6 points) Part 2 Instructions: Page 2 The balances listed below are for December 31 and already include the journal entries you just prepared except for the stockholders' equity accounts. The balances listed for the stockholders' equity accounts are the January 1 balances. You will need to utilize the journal entries you just prepared to complete the Statement of Stockholders' Equity. Prepare a multistep income statement, a statement of stockholders' equity, and a classified balance sheet in good form for the year ended December 31, 20X1. Use the Student Input Form (Excel File) to complete the Financial Statements Debit Credit Cash Accounts receivable Allowance for doubtful accounts Equity Investments at cost Valuation allowance for Equity Investments Merchandise inventory at lower of cost (FIFO) or market Prepaid expenses Interest receivable Investment in Masco Company stock Store buildings and equipment Accumulated depreciation-store buildings and equipment Accounts payable Income tax payable Bonds payable, 10%, due in 10 years Premium on bonds payable Retained earnings, January 1, 20X1 Cash dividends, January 1, 20X1 balance Stock Dividends, January 1, 20X1 balance Common stock, $10 par (100,000 shares authorized; 4400 shares outstanding), January 1, 20X1 Paid-in capital in excess of par-common stock, January 1, 20X1 Paid-in capital from sale of treasury stock, January 1, 20X1 Treasury stock, January 1, 20X1 Sales Gain from sale of investment Unrealized gain (loss) on Equity Investments Dividend revenue Interest revenue Income of Masco Company Cost of goods sold 120,000 79,000 20,000 8,000 1,200 800 6,000 122,000 0 0 0 160,000 4,000 2,000 60,000 32,960 2,000 40,000 2,000 91,220 44,000 4,400 0 280,000 400 3,840 320 1,080 8,000 Advertising expense Depreciation expense—store buildings and equipment Miscellaneous selling expenses Sales commissions Office rent expense Office salaries expense Miscellaneous administrative expenses Interest expense Income tax expense $4,000 2,800 2,000 8,000 20,000 24,000 400 2,000 16,000 Journal Entries 2-8 points each (75 points) ABC Corporation, Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20X1 Common Stock Balances, January 1 Issued common stock Net income Cash dividends Stock dividends Sale of treasury stock Purchase of treasruy stock Balances December 31 Paid-in Capital in Excess of Par - Common Stock (12 points) Paid-in Capital from sale of Treasury Stock Retained Earnings Treasury Stock 0 Page 6 Total ABC Corporation, Inc. Balance Sheet December 31, 20X1 Assets Liabilities (36 points) Page 7 Stockholders' Equity

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General Journal Account Titles and Explanation A Cash 200011 Common stock 200010 PaidIn excess ... View the full answer