2) Journalize the entries for the following transactions of Suttons Bay Energy I
ID: 2595346 • Letter: 2
Question
2) Journalize the entries for the following transactions of Suttons Bay Energy Inc. April 2, 2016: the company reacquired 22,500 shares of its common stock for $31 per share May 20, 2016:Suttons Bay sold 12,000 of the reacquired shares at $29 per share Your Supplies account on the balance sheet had a beginning balance of $2500 before $2000 more supplies were purchased in July. At the end of the year a physical inventory was taken revealing supplies on hand of $1500 In addition, the billing department has $18,500 in invoices for work performed during the current year. Payment on these invoices will not be received until 2017 Journalize the appropriate adjusting journal entries 3) On the first day of the fiscal year, Heniver Properties LLC issues a $3,000,000, 9% five- year bond that pays semi-annual interest of $135,000. Heniver received $3,016,589 in cash. 4) Journalize the bond issuance. The declaration, record and payment dates in connection with a cash dividend of $66,000 on a corporations common stock are June 15, August 19 and October 24. Journalize the entry required for June 15. If Sales are $3,000,000, the balance in Allowance for Doubtful Accounts is $22,500 (Cr) and estimates are based on 3/4 of 1% of Sales, journalize the appropriate entry to record bad debts expenseExplanation / Answer
2 02-Apr Treasury stock 697500 (22500*31) Cash 697500 20-May Cash 348000 (12000*29) Retained earnings 24000 (12000*2) Treasury stock 372000 (12000*31) 3 1 Supplies expense 3000 (2000+2500-1500) Supplies 3000 2 Accounts receivable 18500 Sales revenue 18500 4 1 Cash 3016589 Bonds payable 3000000 Premium on bonds payable 16589 2 Cash dividend 66000 Dividend payable 66000 3 Bad debt expens e 22500 Allowance for doubtful accounts 22500
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