Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows:Record on journal page 10:Jan.3Issued 15,000 shares of $20 par common stock at $30, receiving cash.Feb.15Issued 4,000 shares of $80 par preferred $1 stock at $100, receiving cash.May1Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. 16Declared 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 this transaction as two separate entries. 26Paid the cash dividends declared on May 16.Jun.1Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150. 8Purchased 8,000 shares of treasury common stock at $33 per share. 22Purchased 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. 30Declared 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.11Paid the cash dividends to the preferred stockholders.Aug.27Received $27,500 dividend from Pinkberry Co. investment in Jun. 22. Record on journal page 11:Oct.1Purchased $90,000 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. 7Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8. 14Received interest of $6,000 from the Solstice Corp. investment on Jun. 1. 29Sold Solstice Corp. bonds with a face value of $40,020 for $45,000, realizing a gain of $4,980. 31Recorded 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.Dec.31Accrued interest for 3 months on the Dream Inc. bonds purchased on Oct. 1. 31Pinkberry Co. reported total earnings of $240,000. Equinox Products recorded its share of Pinkberry Co. net income using the equity method. 31The Solstice Corp. bonds have a fair value of $253,630 on December 31, 20Y5. Valuation Allowance for Available-for-Sale Investments had a balance of zero on January 1, 20Y5. Required:1.Journalize the selected transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Answered: Selected transactions completed by…

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1MP: Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--,...

See similar textbooks

Related questions

Concept explainers

Question

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows:

Record on journal page 10:

Jan.	3	Issued 15,000 shares of $20 par common stock at $30, receiving cash.
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. Journalize this transaction as two separate entries.
	26	Paid the cash dividends declared on May 16.
Jun.	1	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 journal page 11:

Oct.	1	Purchased $90,000 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, 2,600 shares of treasury common stock purchased on Jun. 8.
	14	Received interest of $6,000 from the Solstice Corp. investment on Jun. 1.
	29	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.
Dec.	31	Accrued interest for 3 months on the Dream Inc. bonds purchased on Oct. 1.
	31	Pinkberry Co. reported total earnings of $240,000. Equinox Products recorded its share of Pinkberry Co. net income using the equity method.
	31	The Solstice Corp. bonds have a fair value of $253,630 on December 31, 20Y5. Valuation Allowance for Available-for-Sale Investments had a balance of zero on January 1, 20Y5.

	Required:
1.	Journalize the selected transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Required:

Journalize the selected transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.