Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows: Record on journal page 10: 3 Issued 15,000 shares of $20 par common stook at 530, receiving cash. Jan. Feb. 15 Issued 4,000 shares of $80 par preferred $1 stock at $100, receiving cash. May 1 Issued $500.000 of 10-year, 5% bonds at 104, with interest payable semiannually. 16 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. Joumalize this transaction as two separate entries. 28 Paid the cash dividends declared on May 16. Jun. Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150. 8 Purchased 8,000 shares of treasury common stock at $33 per share. 22 Purchased 40,000 shares of Pinkberry Co.'s common stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding. 30 Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. Jul. 11 Paid the cash dividends to the preferred stockholders. Aug. 27 Received $27.500 dividend from Pinkberry Co. investment in Jun. 22. Record on joumal page 11: Oct. Purchased S90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company. at their face amount plus accrued interest of $375. The bonds are a held-to-maturity investment. 7 Sold, at $38 per share, 2,000 shares of treasury common stock purchased on Jun. 8. 14 Received interest of $6,000 from the Solstice Corp. investment on Jun. 1. 20 Sold Solstice Corp. bonds with a face value of $40,020 for $45,000, realizing a gain of $4,980. 31 Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for 6 months. The amortization is determined using the straight-line method. Accrued interest for 3 months on the Dream Inc. bonds purchased on Oct. 1. Dec. 31
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows: Record on journal page 10: 3 Issued 15,000 shares of $20 par common stook at 530, receiving cash. Jan. Feb. 15 Issued 4,000 shares of $80 par preferred $1 stock at $100, receiving cash. May 1 Issued $500.000 of 10-year, 5% bonds at 104, with interest payable semiannually. 16 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. Joumalize this transaction as two separate entries. 28 Paid the cash dividends declared on May 16. Jun. Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150. 8 Purchased 8,000 shares of treasury common stock at $33 per share. 22 Purchased 40,000 shares of Pinkberry Co.'s common stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding. 30 Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. Jul. 11 Paid the cash dividends to the preferred stockholders. Aug. 27 Received $27.500 dividend from Pinkberry Co. investment in Jun. 22. Record on joumal page 11: Oct. Purchased S90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company. at their face amount plus accrued interest of $375. The bonds are a held-to-maturity investment. 7 Sold, at $38 per share, 2,000 shares of treasury common stock purchased on Jun. 8. 14 Received interest of $6,000 from the Solstice Corp. investment on Jun. 1. 20 Sold Solstice Corp. bonds with a face value of $40,020 for $45,000, realizing a gain of $4,980. 31 Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for 6 months. The amortization is determined using the straight-line method. Accrued interest for 3 months on the Dream Inc. bonds purchased on Oct. 1. Dec. 31
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings
Section: Chapter Questions
Problem 9SPB: CASH DIVIDENDS, STOCK DIVIDEND, AND STOCK SPLIT During the year ended December 31, 20--, Baggio...
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