In: Accounting
Selected transactions completed by ATV Discount Corporation
during the current fiscal year are as follows:
Jan....
Selected transactions completed by ATV Discount Corporation
during the current fiscal year are as follows:
Jan. |
5. |
Split the common
stock 3 for 1 and reduced the par from $75 to $25 per share. After
the split, there were 1,170,000 common shares outstanding. |
Mar. |
10. |
Purchased 39,000
shares of the corporation’s own common stock at $28, recording the
stock at cost. |
Apr. |
30. |
Declared semiannual
dividends of $0.85 on 72,300 shares of preferred stock and $0.10 on
the common stock to stockholders of record on May 15, payable on
June 15. |
June |
15. |
Paid the cash
dividends. |
Aug. |
20. |
Sold 29,300 shares
of treasury stock at $35, receiving cash. |
Oct. |
15 |
Declared semiannual
dividends of $0.85 on the preferred stock and $0.10 on the common
stock (before the stock dividend). In addition, a 4% common stock
dividend was declared on the common stock outstanding. The fair
market value of the common stock is estimated at $37. The dividend
date of record is November 15 payable on December 19. |
Dec. |
19. |
Paid the cash
dividends and issued the certificates for the common stock
dividend. |
Journalize the transactions. If no entry is required, simply
skip to the next transaction. Refer to the Chart of Accounts for
exact wording of account titles.
CHART OF ACCOUNTS |
ATV Discount Corporation |
General Ledger |
|
ASSETS |
110 |
Cash |
120 |
Accounts Receivable |
131 |
Notes Receivable |
132 |
Interest Receivable |
141 |
Merchandise Inventory |
145 |
Office Supplies |
151 |
Prepaid Insurance |
181 |
Land |
193 |
Equipment |
194 |
Accumulated Depreciation-Equipment |
|
LIABILITIES |
210 |
Accounts Payable |
221 |
Notes Payable |
226 |
Interest Payable |
231 |
Cash Dividends Payable |
241 |
Salaries Payable |
261 |
Mortgage Note Payable |
|
EQUITY |
311 |
Common Stock |
312 |
Paid-In Capital in Excess of Par-Common Stock |
315 |
Treasury Stock |
321 |
Preferred Stock |
322 |
Paid-In Capital in Excess of Par-Preferred Stock |
331 |
Paid-In Capital from Sale of Treasury Stock |
340 |
Retained Earnings |
350 |
Stock Dividends Distributable |
351 |
Cash Dividends |
352 |
Stock Dividends |
390 |
Income Summary |
|
|
REVENUE |
410 |
Sales |
610 |
Interest Revenue |
|
EXPENSES |
510 |
Cost of Merchandise Sold |
515 |
Credit Card Expense |
520 |
Salaries Expense |
531 |
Advertising Expense |
532 |
Delivery Expense |
533 |
Selling Expenses |
534 |
Rent Expense |
535 |
Insurance Expense |
536 |
Office Supplies Expense |
537 |
Organizational Expenses |
562 |
Depreciation Expense-Equipment |
590 |
Miscellaneous Expense |
710 |
Interest Expense |
|