American Laser, Inc., reported the following account balances on January 1. Acco

Question

American Laser, Inc., reported the following account balances on January 1.   Accounts Receivable $ 5,000   Accumulated Depreciation 30,000   Additional Paid-in Capital 90,000   Allowance for Doubtful Accounts 2,000   Bonds Payable 0   Buildings 247,000   Cash 10,000   Common Stock, 10,000 shares of $1 par 10,000   Notes Payable (long-term) 10,000   Retained Earnings 120,000   Treasury Stock 0 The company entered into the following transactions during the year. Jan. 15 Issued 5,000 shares of $1 par common stock for $50,000 cash. Feb. 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. Mar. 15 Reissued 2,000 shares of treasury stock for $24,000 cash. Aug. 15 Reissued 600 shares of treasury stock for $4,600 cash. Sept. 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Oct. 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. Oct. 3 Wrote off a $500 balance due from a customer who went bankrupt.

Prepare the journal entries to record each transaction. Review the accounts as shown in the General Ledger and Trial Balance tabs. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

1

Issued 5,000 shares of $1 par common stock for $50,000 cash. Record the transaction.

2

Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. Record the transaction.

3

Reissued 2,000 shares of treasury stock for $24,000 cash. Record the transaction.

4

Reissued 600 shares of treasury stock for $4,600 cash. Record the transaction.

5

Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Record the transaction.

6

Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. Record the transaction.

7

Wrote off a $500 balance due from a customer who went bankrupt. Record the transaction.

8

Prepare the closing entry for Dividends. Record the transaction.

Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.

UnadjustedPost-closing Unadjusted

Unadjusted

Post-closing

Dates:Jan 01

Jan 01

Jan 31

Jan 01

Jan 31

Jan 15

Jan 31

Feb 15

Feb 28

Mar 15

Mar 31

Aug 15

Aug 31

Sep 15

Sep 30

Oct 01

Oct 03

Oct 31

to:Oct 03

Jan 01

Jan 31

Jan 01

Jan 31

Jan 15

Jan 31

Feb 15

Feb 28

Mar 15

Mar 31

Aug 15

Aug 31

Sep 15

Sep 30

Oct 01

Oct 03

Oct 31

General Ledger Account Cash No. Date Debit Credit Balance Dec 31 10,000 Accounts Receivable No. Date Debit Credit Balance Dec 31 5,000 Allowance for Doubtful Accounts No. Date Debit Credit Balance Dec 31 2,000 Buildings No. Date Debit Credit Balance Dec 31 247,000 Accumulated Depreciation—Buildings No. Date Debit Credit Balance Dec 31 30,000 Notes Payable (long-term) No. Date Debit Credit Balance Dec 31 10,000 Common Stock No. Date Debit Credit Balance Dec 31 10,000 Additional Paid-In Capital—Common Stock No. Date Debit Credit Balance Dec 31 90,000 Retained Earnings No. Date Debit Credit Balance Dec 31 120,000

Explanation / Answer

Journal Entry Date Accounting titles & Explanations Debit Credit 1) Cash 50,000 Common stock 5,000 Addittional paid in capital 45,000 2) Treasury stock (3000*11) 33,000 Cash 33,000 3) Cash 24,000 Treasury stock (2000*11) 22,000 Addittional paid in capital -TS 2,000 4) Cash 4,600 Addittional paid in capital-TS 2,000 Treasury stock (600*11) 6600 5) Cash dividend 14600 dividend payable 14,600 (10,000+5000-3000+2000+600)*1 6) Cash (100*1000*1.01) 101000 Premium on bonds payable 1,000 Bonds payable 100,000 7) Allowance for doubtful accounts 500 Account receivable 500 8) Retained earnings 14,600 cash dividend 14,600

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.