Will rate highly!!! Excel Table Format Highly Preferred!!! Selected transactions

Question

Will rate highly!!! Excel Table Format Highly Preferred!!!

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows:

Record on journal page 10:

Record on journal page 11:

The fair value for Solstice Corp. stock was $39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments had a beginning balance of zero.

Jan. 3 Issued 15,000 shares of $20 par common stock at $30, receiving cash. Feb. 15 Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. May 1 Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. 16 Declared a 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 this transaction as a single entry. 26 Paid the cash dividends declared on May 16. Jun. 1 Purchased 7,500 shares of Solstice Corp. at $40 per share, plus a $150 brokerage commission. The investment is classified as an available-for-sale investment. 8 Purchased 8,000 shares of treasury common stock at $33 per share. 22 Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. 30 Declared a $1.00 cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock were outstanding. Jul. 11 Paid the cash dividends declared on Jul. 11 to the preferred stockholders. Aug. 27 Received $27,500 dividend from Pinkberry Co. investment of Jun. 22.

Explanation / Answer

Date Particulars Debit Credit 3-Jan Cash 450000 to common Stock 300000 To Securities Premium 150000 15-Feb Cash 400000 To 5% Preferred Stock 320000 To Securities Premium 80000 1-May Cash 520000 To 5%bonds 500000 To Securities Premium 20000 16-May General Reserve Ac 70000 To Equity Dividend Payable 50000 To Preference Dividend Payable 20000 26-May Equity Dividend Payable 50000 Preference Dividend Payable 20000 To Cash 70000 1-Jun Investment in Soltice Corp 300000 Brokerage 150 To Cash 30150 8-Jun Investment in own Stock 264000 To Cash 264000 22-Jun investment in Pinkburry 960000 To Cash 960000 30-Jun General Reserve Ac 20000 To Preference Dividend Payable 20000 1-Oct Investment in Dream Inc 90000 Accrued Interest 375 To Cash 90375 7-Oct Cash 98800 To investment in own Stock 85800 To Profit and loss A/C 13000 14-Oct Cash 4500 TO dividend Received from soltice corp 4500 29-Oct cash 45000 To investment in Soltice Corp 40000 To Profit and loss A/C 5000 31-Oct Securities Premium 1000 To profit and loss 1000 (Amortization of Premium) 31-Oct Interest 25000 To cash 25000 31-Dec Accrued interest 4500 To profit and loss 4500 31-Dec investment in Pinkburry 76800 To Profit and loss 76800 (32% holding is equivalent to 76800 of 240000of total earnings) 31-Dec profit and loss 6370 To investement in Soltice Inv 6370 (vlue decreased to 39.02) Particulars Amount Sales less sales commisions less sales salaries less store supplies 4,663,000 Cost of merchandise sold -3700000 Gross profit 963,000 Advertising expense -150000 Delivery expense -30000 Depreciation expense-office buildings and equipment -30000 Depreciation expense-store buildings and equipment -100000 Dividend revenue 4500 Gain on sale of investments 4980 Income from Pinkberry Co. investment 76800 Interest revenue 2720 Miscellaneous administrative expense -7500 Miscellaneous selling expense -14000 Office rent expense -50000 Office salaries expense -170000 Office supplies expense -10000 Profit before interest and tax 490,500 Income tax expense -140500 Interest expense -21000 Net Profit 329,000 less- preference dividends -100000 Profit for common stock holders 229000 no of shares outstanding 100000 Earnings per share 2.29 Particulars Amount Non Current Assets tangible Assets 10940000 Intangible Assets 500000 Long term Investments 1009300+90000 1099300 Current Assets Accounts Receivable less allowance for doubtful accounts 536550 Investment 260130 Cash and Cash Equivalents 246000 Interest Receivable 1125 Inventory 778000 Own Stock 178200 Prepaid Expenses 27400 Total 14566705 Equity and Liabilities Equity Common Stock 1879000 preferred stock 1600000 Securties premium 1055800 Retained Earnings + 229000 9293605 Non current Liabilities Long term Bonds 500000 Current Liabilities Accounts payable 194300 Income tax payable 44000 Total 14566705

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