ONLY NEED LETTER J ONLY NEED LETTER J Comprehensive Problem 4 Part 1: Selected t
ID: 2530703 • Letter: O
Question
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.
b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.
c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.
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.
e. Paid the cash dividends declared in (d).
f. Purchased 8,000 shares of treasury common stock at $33 per share.
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.
h. Paid the cash dividends to the preferred stockholders.
i. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f).
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 Cash Common Stock Paid-In Capital in Excess of Par-Common StockExplanation / Answer
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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) $12,500Related Questions
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