Question

Sandals Corporation was organized on January 1st 2020. The following investments transactions and events occurred during the following months.

TASK:

Calculate and Journalized the following transaction.

2020

Jan 8​Sandals Corp intends to raise $800,000.00 for the purpose of expanding its operation internationally, as a result they issued a Bond for $800,000. The Bond was issued at 98.

Jan 18​Purchased 16,000 common shares of Halcyon at $1.40 plus $500 in transaction fees

Feb 27​Purchased 500 common shares of Zoom at $103.00, plus paid $100 transaction fees

Mar 6​The amount of money raised on January 8th was not enough for its operation. Sandals is desirous of raising another $750,000. Bond Holders require the Bond to be issued at 101.

Apr 26​Purchase 1,000 common shares of Pacific Exploration at $18.00, plus an additional $250 in transaction fees.

Apr 30​​Received $0.10 per share cash dividend on Halcyon common shares

June 4​Sold 10,000 Halcyon common shares at $1.15, less a transaction fee of $250.00

July 1​Paid $142,438, for a 7.2% four-year, $140,000 MarinaBay Inc. Bond that pays interest quarterly beginning September 30th. The market rate of interest on this date was 6.7%. Sandals Corp plans to hold this investment until maturity.

July 17​​Received a $7.25 per share cash dividend on the Zoom shares.

Aug 1​Sandals issued a Bond with a par value of $450,000 dated 1st June, and which pays 8% semi-annual interest, were sold on August 1st at par value.

Sep 1​​Received a $0.10 per share cash dividend on the remaining Halcyon shares

Sep 30​​Received interest on the MarinaBay bond

Dec 31​Received interest on the MarinaBay bond

2021

Feb 6​​Sold the remaining Halcyon shares at $1.35, less transaction fee of $150.

Answer 1