Question

In: Accounting

ONLY NEED LETTER J ONLY NEED LETTER J Comprehensive Problem 4 Part 1: Selected transactions completed...

ONLY NEED LETTER J

ONLY NEED LETTER J

Comprehensive Problem 4
Part 1:

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows:

1. Journalize the selected transactions.

If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Issued 15,000 shares of $20 par common stock at $30, receiving cash.

Description Debit Credit
Cash
Common Stock
Paid-In Capital in Excess of Par-Common Stock

b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.

Description Debit Credit
Cash
Preferred Stock
Paid-In Capital in Excess of Par-Preferred Stock

c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.

Description Debit Credit
Cash
Bonds Payable
Premium on Bonds Payable

d. Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. Journalize the common stock and the preferred stock entries separately.

Description Debit Credit
Cash Dividends
Cash Dividends Payable
Common stock
Cash Dividends
Cash Dividends Payable
Preferred stock

e. Paid the cash dividends declared in (d).

Description Debit Credit
Cash Dividends Payable
Cash

f. Purchased 8,000 shares of treasury common stock at $33 per share.

Description Debit Credit
Treasury Stock
Cash

g. Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued.

Description Debit Credit
Cash Dividends
Cash Dividends Payable

h. Paid the cash dividends to the preferred stockholders.

Description Debit Credit
Cash Dividends Payable
Cash

i. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f).

Description Debit Credit
Cash
Treasury Stock
Paid-In Capital from Sale of Treasury Stock

j. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method.

Description Debit Credit
Interest Expense
Premium on Bonds Payable
Cash

Solutions

Expert Solution

Description Debit Credit
a. Cash (15,000 x $30) $450,000
Common stock (15,000 x $20) $300,000
Paid-In Capital in Excess of Par-Common Stock(15000 x $10) $150,000
b. Cash (4,000 x $100) $400,000
Preferred stock (4,000 x $80) $320,000
Paid-In Capital in Excess of Par-Preferred Stock (4,000 x $20) $80,000
c. Cash $520,000
Bonds Payable $500,000
Pemium on Bonds Payable $20,000
d. Cash Dividends ($0.50 x 100,000) $50,000
Cash Dividends Payable ($0.50 x 100,000) $50,000
(Common stock)
Cash Dividends ($1 x 20,000) $20,000
Cash Dividends Payable ($1 x 20,000) $20,000
(Preferred stock)
e. Cash Dividends Payable $70,000
Cash Dividends $70,000
f. Treasury stock (8,000 x $33) $264,000
Cash (8,000 x $33) $264,000
g. Cash Dividends ($1 x 20,000) $20,000
Cash Dividends Payable $20,000
h. Cash Dividends Payable $20,000
Cash Dividends $20,000
i. Cash (2,600 x $38) $98,800
Treasury stock (2,600 x $33) $85,800
Paid-in capital from sale of Treasury stock (2,600 x $5) $13,000
j. Interest Expense $11,500
Premium on Bonds Payable [$20,000 / (10x2)] $1,000
Cash ($500,000 x .05 / 2) $12,500

"It would be appreciated if you give your feedback"


Related Solutions

Comprehensive Problem 4 Part 1: Selected transactions completed by Equinox Products Inc. during the fiscal year...
Comprehensive Problem 4 Part 1: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, Year 1, were as follows: 1. Journalize the selected transactions. If no entry is required, select "No entry required" from the dropdown. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. Description Debit Credit Cash Common Stock Paid-In Capital in Excess...
Comprehensive Problem 4 Part 1: Selected transactions completed by Equinox Products Inc. during the fiscal year...
Comprehensive Problem 4 Part 1: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: 1. Journalize the selected transactions. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank. CHART OF ACCOUNTS: CASH COMMON STOCK PAID IN CAPITAL IN EXCESS OF PAR-COMMON STOCK RETAINED EARNINGS NO ENTRY...
Comprehensive Problem 4 (Part A) Instructions Chart of Accounts Journal Instructions Selected transactions completed by Equinox...
Comprehensive Problem 4 (Part A) Instructions Chart of Accounts Journal Instructions Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: Record on journal page 10: Jan.3Issued 15,000 shares of $20 par common stock at $30, receiving cash.Feb.15Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.May1Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.16Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock....
Comprehensive Problem 3 Part 1: Selected transactions completed by Kornett Company during its first fiscal year...
Comprehensive Problem 3 Part 1: Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Y5, were as follows: 1. Journalize the selected transactions. Assume 360 days per year. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 3: Issued a check to establish a petty cash fund of $4,500....
Comprehensive Problem 3 Part 1: Selected transactions completed by Kornett Company during its first fiscal year...
Comprehensive Problem 3 Part 1: Selected transactions completed by Kornett Company during its first fiscal year ended Dec. 31, 20Y8, were as follows: 1. Journalize the selected transactions. Assume 360 days per year. If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 3: Issued a check to establish a petty cash fund of $4,500....
Note: You must complete Comprehensive Problem 4 (Part A) before completing Comprehensive Problem 4 (Part B)....
Note: You must complete Comprehensive Problem 4 (Part A) before completing Comprehensive Problem 4 (Part B). Required: 1. After all of the transactions for the year ended December 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follow were taken from the records of Equinox Products Inc. a. Prepare a multiple-step income statement for the year ended December 31, 20Y8. Enter all amounts as positive numbers EXCEPT in the Other...
Problem 4 Acme, Inc., a subsidiary of J & J, during 2015, began and completed a...
Problem 4 Acme, Inc., a subsidiary of J & J, during 2015, began and completed a small warehouse. Construction on the warehouse began January 2, of 2015. Expenditures were made as follows: January 2, $1,000,000, March 1, $900,000, July 1, $400,000 and Oct. 1, $800,000. J & J financed the project by issuing $1,000,000 in stock at the beginning of 2015 and borrowed $1,200,000 from The Last National Bank at an interest rate of 8%. In addition, Acme had the...
Comprehensive Problem 1 Part 1: The following is a comprehensive problem which encompasses all of the...
Comprehensive Problem 1 Part 1: The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. The chart of accounts for Kelly Consulting is shown below: 11 Cash 32 Retained Earnings 12 Accounts Receivable 33 Dividends 14 Supplies 41 Fees Earned 15 Prepaid Rent 51 Salary Expense...
Comprehensive Problem 1 Part 1: The following is a comprehensive problem which encompasses all of the...
Comprehensive Problem 1 Part 1: The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. The chart of accounts for Kelly Consulting is shown below: 11 Cash 32 Retained Earnings 12 Accounts Receivable 33 Dividends 14 Supplies 41 Fees Earned 15 Prepaid Rent 51 Salary Expense...
I only need part C completed Part A In late 2017, the Nicklaus Corporation was formed....
I only need part C completed Part A In late 2017, the Nicklaus Corporation was formed. The corporate charter authorizes the issuance of 4,000,000 shares of common stock carrying a $1 par value, and 1,000,000 shares of $5 par value, noncumulative, nonparticipating preferred stock. On January 2, 2018, 2,000,000 shares of the common stock are issued in exchange for cash at an average price of $10 per share. Also on January 2, all 1,000,000 shares of preferred stock are issued...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT