Question

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 1,275,000 common shares outstanding.
Mar.	10.	Purchased 41,300 shares of the corporation’s own common stock at $29, recording the stock at cost.
Apr.	30.	Declared semiannual dividends of $0.75 on 70,400 shares of preferred stock and $0.11 on the common stock to stockholders of record on May 15, payable on June 15.
June	15.	Paid the cash dividends.
Aug.	20.	Sold 31,900 shares of treasury stock at $33, receiving cash.
Oct.	15	Declared semiannual dividends of $0.75 on the preferred stock and $0.11 on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $38. 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

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

Journal

Shaded cells have feedback.

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.

How does grading work?

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 122/225

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Text entry invalid	✔
2		✔
3
4		✔
5		✔
6
7		✔
8		✔
9
10		✔
11		✔
12
13
14		✔
15		✔
16
17		✔
18

Answer 1

DATE	DEESCRIPTION	POST.REF.	DEBIT	CREDIT	ASSET	LIABILITIES	EQUITY
Mar.10	Treasury stcok (41300*29)		$       11,97,700				Decrease
	Cash			$       11,97,700	Decrease
	(To purchase of treasury stock)
Apr.30	Cash dividends		$          4,69,007				Decrease
	Cash dividends payable			$          4,69,007		Increase
	(Dividend declared on preference stock and common stock)
Jun.15	Cash dividends payable		$          4,69,007			Decrease
	Cash			$          4,69,007	Decrease
	(Cash dividend paid)
Aug.20	Cash (31900*33)		$       10,52,700		Increase
	Treasury stock (31900*25)			$          7,97,500			Increase
	Paid in capital from sale of treasury stock (31900*8)			$          2,55,200			Increase
	(Issue of treasury stock)
Oct.15	Cash dividends		$          4,72,516				Decrease
	Cash dividends payable			$          4,72,516		Increase
	(Dividend declared on preference stock and common stock)
Dec.19	Retained earnings		$       28,99,856				Decrease
	Common stock			$       19,07,800			Increase
	Paid in capital in excess of Par-Common stock			$          9,92,056			Increase
	(Issue of stock dividend)
Dec.19	Cash dividends payable		$          4,72,516			Decrease
	Cash			$          4,72,516	Decrease
	(Cash dividend paid)