Concept explainers
1. Record the
Entries:
A. Issued 3500 shares of $10 par common stock at $11, receiving cash.
B. Issued $ 70000 of 10 year 10% bonds at a market (effective) interest rate of 9%, with interest payable semiannually. Use the Present Value Tables in Appendix A of text book. Round all calculations to the nearest dollar.
C. Declared a dividend of $0.25 per share on common stock. On date of declaration, 11200 shares of common stock were outstanding.
D. Paid cash dividend from (c) above.
E. Purchased 4200 shares of Jones Company for $10 per share, plus $2100 commission. Our company purchased less than 20% of the outstanding stock of Jones Company.
F. Declared a 5% stock dividend on the $10 par common stock when the (6 points) market price was $ 25 per share. There were 11200 Shares outstanding.
G. Distributed the stock dividends declared in (F).
H. Purchased $5000 of 5% bonds at par. Interest is payable semiannually.
I. Purchased 210 shares of
J. Received semiannual interest from bonds purchased in (H).
K. Received a total cash dividend of $420 from Jones Company.
L. Received a $700 dividend from our investment in Masco Company stock. This investment is accounted for under the equity method.
M. Sold, at $17 per share, 105 shares of treasury common stock purchased in (I).
N. Sold 840 shares of Jones company stock purchased in (E) for $13 per share, including commission.
O. Masco Company's total earnings are $35000. We own 40%. Record the earnings for our company using the equity method.
P. Sold the bonds purchased in (H) at 103 plus $63 in accrued interest.
Q. At the end of the accounting period, the remaining shares of Jones Company stock increased $2.00 per share
R. Record the payment of semiannual interest on the bonds issued in (B) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Round all calculations to the nearest dollar.
Trending nowThis is a popular solution!
Step by stepSolved in 2 steps
- 1. Prepare the journal entry to record Tamas Company's issuance of 6,900 shares of $100 par value, 9% cumulative preferred stock for $104 cash per share. 2. Assuming the facts in part 1, if Tamas declares a year-end cash dividend, what is the amount of dividend paid to preferred shareholders? (Assume no dividends in arrears.) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record Tamas Company's issuance of 6,900 shares of $100 par value, 9% cumulative preferred stock for $104 cash per share. View transaction list Journal entry worksheetarrow_forward! Required Information [The following information applies to the questions displayed below.] Refer to the following transactions. a. Sold 2,010 shares of $9 par value preferred stock at $14.50 per share. b. Declared the annual cash dividend of $3.6 per share on common stock. There were 9,000 shares of $1 par value common stock issued and outstanding throughout the year. c. Issued 3,400 shares of $11.5 par value preferred stock in exchange for a building when the market price of preferred stock was $16 per share. d. Purchased 180 shares of preferred stock for the treasury at a price of $12.00 per share. e. Sold 70 shares of the preferred stock held in treasury (see d) for $17.5 per share. f. Declared and issued a 20% stock dividend on the $1 par value common stock (see b) when the market price per share was $39. Required: Show the effect (if any) of each of the above transactions on each financial statement category by selecting a plus (+) or minus (-) sign and the amount in the…arrow_forwardPrepare entries to record the following: (Must use proper journal format) (a) Issued 1,000 shares of $5 par common stock at $36. (b) Issued 1,400 shares of $5 par common stock in exchange for equipment with a fair market price of $19,000. (c) Purchased 100 shares of treasury stock at $25. (d) Sold 80 shares of treasury stock purchased in (c) at $30arrow_forward
- a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. Descr D C b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. Descr D C c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. Descr D C 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. Descr D C e. Paid the cash dividends declared in (d). Descr D C f. Purchased 8,000 shares of treasury common stock at $33 per share. Descr D C g. Declared a $1.00 quarterly cash…arrow_forwardComplete the following problem Jan. Issued 1,000 shares of Common Stock, $2 par for $12 per share. Record the journal entry. Date Description Post. Ref. Debit Credit March Issued 3,000 share of Common Stock, $2 par for $15 per share. Record the journal entry. Date Description Post. Ref. Debit Credit April Issued 5,000 share of Common Stock, $2 par for $17 per share. Record the journal entry. Date Description Post. Ref. Debit Credit…arrow_forwardMJH Company issued 75 shares of stock with a par value of $5 per share for $7 a share. The entry to journalize this would include: a debit to common stock of $375 none of the above a credit to cash of $525 a debit to paid in capital in exess of par for $150arrow_forward
- Requirement 1. Record the transactions in Halborn's general journal. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining cells blank.)\\nJan. 16: Declared a cash dividend on the 5%, $99 par noncumulative preferred stock (1,100 shares outstanding). Declared a $0.40 per share dividend on the 80,000 shares of $8 par value common stock outstanding. The date of record is January 31, and the payment date is February 15.arrow_forwardPlease help me with all answers I will give upvotearrow_forwardThe balance sheet caption for common stock is the following: Common stock, $2 par value, 2,070,000 shares authorized, 1,310, 000 shares issued, 1,050,000 shares outstanding $? Required: a. Calculate the dollar amount that will be presented opposite this caption. b. Calculate the total amount of a cash dividend of $0.27 per share. c. What accounts for the difference between issued shares and outstanding shares? a. Amount b. Cash dividend c. Difference between issued shares and outstanding sharesarrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education