How do I journalize these transactions. 1. issued 15,000 shares of $20 par common...

60.1K

Verified Solution

Question

Accounting

How do I journalize these transactions.

1. issued 15,000 shares of $20 par common stock at $30, receving cash

2. Issued 4, 000 shares of $80 par preferred 5% stock at $100, receiving cash.

3. Issued $500,000 of 10Yr. , 5% bonds at 104, with intrest payable semiannyally.

4. Declared a qartely dividend of $0.50 per share on common stock and $100 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.

5. Paid the cash of dividends declared in (d)

6. Purchased 7,500 shares of Sol Sorp. at $40 per share, plus a $150 brokerage commision. the investment is classified as an available-for-sale investment.

7. Purchased 8,000 shares of treasury common stock at $33per share

8. Purchased 40,000 shares of Pink Co, stock directly from the founders for $24 per share. Pink has 125,000 shares issued and outstanding. Equi Inc. treated the investment as an equity method investment

9. Declared a $100 quarerly cahs dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued.

10. Paid the cash dividends to the preferred stockholders.

11. Received $27,500 dividend from Pink. Co. investment in (H)

12. Purchased $900,000 of Dream Inc. 10Yr., 5% bonds, directly from the issuing company, at their face amount plus accrued intrest of $375. The bonds are classified as a held-to-maturity long-term ubvestment.

13. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (g)

14. Received a dividend of $0.60 per share from the Sol Corp. investment in (f)

15. Sold 1,000 shares of Sol Corp. at $45, including commision

16. Recorded the payment of semiannyal intrest on the bonds issued in (c) and the amortization of the premium for 6 monts. The amortization is determined using the straight-line methiod.

17. Accrued intrest for 3 months on the Dream Inc. bonds purchased in (I)

18. Pink Co. recoreded total earnings of $240,000 Equi. Pro. recorded qeuity earnings for its share of Pink Co. net income.

19. The fair value for Sol Co, stock was $39.02 per share on Dec. 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.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students