FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, 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 5% 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. | |
26 | Paid the cash dividends declared on May 16. | |
Jun. | 8 | Purchased 8,000 shares of |
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. |
Record on journal page 11:
Oct. | 7 | Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8. |
31 | Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for six months. The amortization is determined using the straight-line method. |
Required: | |
1. | Journalize the selected transactions. Refer to the Chart of Accounts for exact wording of account titles. Note: on May 16 record the declaration of dividends for common shares and the declaration of dividends for |
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