Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Partially Completed Spreadsheet
The following partially completed spreadsheet has been prepared for Perrin Company's 2019 statement of
| Balances | Change | Worksheet Entries | |||
| Account Titles | 12/31/18 | 12/31/19 | Increase (Decrease) | Debit | Credit |
| Debits | |||||
| Cash | 800 | 1,540 | |||
| Noncash Accounts: | |||||
| 1,500 | 2,180 | ||||
| Inventory | 3,100 | 6,055 | |||
| Investments in Stock | — | 2,800 | |||
| Land | 6,000 | 9,200 | |||
| Buildings | 20,000 | 20,000 | |||
| Office Equipment | 4,000 | 6,100 | |||
| Delivery Equipment | 3,000 | 5,900 | |||
| — | 2,000 | ||||
| Totals | 38,400 | 55,775 | ? | ||
| Credits | |||||
| 7,000 | 8,500 | ||||
| Accounts Payable | 3,300 | 3,695 | |||
| Wages Payable | 600 | 500 | |||
| Bonds Payable | — | 5,000 | |||
| Premium on Bonds Payable | — | 240 | |||
| Common Stock, $10 par | 6,000 | 8,200 | |||
| Additional Paid-in Capital | 9,000 | 13,640 | |||
| ? | ? | 3,500 | |||
| Totals | 38,400 | 55,775 | ? |
- Additional relevant information:
Beginning retained earnings $12,500 Plus: Net income 8,000 $20,500 Less: Stock dividends $ 840 Cash dividends 3,660 (4,500) Ending retained earnings $16,000 - Accumulated depreciation is a contra account for all the depreciable assets. Depreciation on these assets totaled $2,200 for the year.
- On January 1, 2019, the company issued 10% bonds with a face value of $5,000 at 106. Interest was paid semiannually on June 30 and December 31. The bonds mature on January 1, 2024. Straight-line amortization is used for bond discount or premium. Bond interest expense was $440.
- Land was purchased for $3,200 during the year.
- Two hundred shares of common stock were issued for delivery equipment valued at $2,900 and office equipment valued at $3,100.
- Twenty shares of stock were issued as a stock dividend. The market price per share was $42.
- Office equipment with a cost of $1,000 and a book value of $300 was sold for $50.
- Fifty shares of its own common stock were reacquired by the company as treasury stock. The company purchased the shares for $40 per share.
- One hundred shares of Doe Company stock were purchased for $28 per share at year-end.
Required:
Complete the spreadsheet. Use the minus sign to indicate
I specifically need help with calculating the correct credit and debit for Premium on Bonds Payable, the correct bond premium amortization, the proceeds from issuance of bonds, and the Issuance of common stock for equipment.
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