Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Chapter 4, Problem 4.21P
Problem 4.21
LO 2, 6, 7
Record transactions and adjustments Use the horizontal model, or write the
- Issued 100,000 shares of $5-par-value common stock for $500,000 in cash.
- Borrowed $250,000 from Oglesby National Bank and signed a 12% note due in three years.
- Incurred and paid $ 190,000 in salaries for the year.
- Purchased $320,000 of merchandise inventory on account during the year.
- Sold inventory costing $290,000 for a total of $455,000, all on credit.
- Paid rent of $55,000 on the sales facilities during the first 11 months of the year.
- Purchased $75,000 of store equipment, paying $25,000 in cash and agreeing to pay the difference within 90 days.
- Paid the entire $50,000 owed for store equipment and $310,000 of the amount due to suppliers for credit purchases previously recorded.
- Incurred and paid utilities expense of $18,000 during the year.
- Collected $412,000 in cash from customers during the year for credit sales previously recorded.
- At year-end, accrued $30,000 of interest on the note due to Oglesby National Bank.
- At year-end, accrued $5,000 of past-due December rent on the sales facilities.
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Sheridan Ltd. has the following selected transactions:
1.
2.
3.
4.
5.
6.
7.
8.
Issued common shares to shareholders in exchange for $6,800.
Paid rent in advance for two months, $2,800.
Paid administrative assistant $700 salary.
Billed clients $1,600 for services provided.
Received $1,200 in partial payment from clients for services provided in item 4 above.
Purchased $700 of supplies on account.
Paid supplier amount owing on account, $700.
Borrowed $1,400 cash from the bank to purchase equipment.
1.
Journalize the transactions for Sheridan Ltd. (List all debit entries before credit entries. Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles
and enter O for the amounts.)
No Account Titles and Explanation
2.
3.
Asset
Debit
Cash
5
Credit
!!
Comprehensive Problem 4Part 1:
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows:
1. Journalize the selected transactions.
If no entry is required, select "No entry required" from the dropdown. If an amount box does not require an entry, leave it blank.
a. Issued 15,000 shares of $20 par common stock at $30, receiving cash.
Description
Debit
Credit
Cash
fill in the blank 2
fill in the blank 3
Common Stock
fill in the blank 5
fill in the blank 6
Paid-In Capital in Excess of Par-Common Stock
fill in the blank 8
fill in the blank 9
b. Issued 4,000 shares of $80 par preferred $1 stock at $100, receiving cash.
Description
Debit
Credit
Cash
fill in the blank 11
fill in the blank 12
Preferred Stock
fill in the blank 14
fill in the blank 15
Paid-In Capital in Excess of Par-Preferred Stock
fill in the blank 17
fill in the blank 18
c. Issued $500,000 of 10-year, 5% bonds at 104, with…
Comprehensive Problem 4Part 1:
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows:
1. Journalize the selected transactions.
If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.
a. Issued 15,000 shares of $20 par common stock at $30, receiving cash.
Description
Debit
Credit
b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.
Description
Debit
Credit
c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.
Description
Debit
Credit
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…
Chapter 4 Solutions
Accounting: What the Numbers Mean
Ch. 4 - Prob. 4.1MECh. 4 - Mini-Exercise 4.2 LO 2, 6, 7 Record transactions...Ch. 4 - Prob. 4.3MECh. 4 - Prob. 4.4MECh. 4 - Exercise 4.5 LO 2. 6, 7 Record transactions and...Ch. 4 - Exercise 4.6 LO 2. 6, 7 Record transactions and...Ch. 4 - Exercise 4.7 LO 6 Write journal entries Write the...Ch. 4 - Exercise 4.8 LQ 6 Write journal entries Write the...Ch. 4 - Exercise 4.9 LO 2, 6, 7 Record transactions and...Ch. 4 - Exercise 4.10 LO 2. 6, 7 Record transactions and...
Ch. 4 - Exercise 4.11 LO 2. 6, 7 Record transactions and...Ch. 4 - Exercise 4.12 LO 2, 6, 7 Record transactions and...Ch. 4 - Exercise 4.13 LO 3 Calculate retained earnings On...Ch. 4 - Prob. 4.14ECh. 4 - Exercise 4.15 LO 6 . 7 Notes receivable-interest...Ch. 4 - Exercise 4.16 LO 6, 7 Notes payable-interest...Ch. 4 - Exercise 4.17 LO 6, 7 Effect of adjustments on net...Ch. 4 - Exercise 4.18 LO 6, 7 Effects of adjustments A...Ch. 4 - Exercise 4.19 LO 6 , 7 T-account analysis Answer...Ch. 4 - Exercise 4.20 LO 6, 7 Transaction analysis using...Ch. 4 - Problem 4.21 LO 2, 6, 7 Record transactions and...Ch. 4 - Prob. 4.22PCh. 4 - Prob. 4.23PCh. 4 - Problem 4.24 LO 6. 7 Calculate income from...Ch. 4 - Prob. 4.25PCh. 4 - Prob. 4.26PCh. 4 - Problem 4.27 LO 6. 7 Analyze several accounts...Ch. 4 - Prob. 4.28PCh. 4 - Case 4.29LO 6, 7Capstone analytical review of...Ch. 4 - Prob. 4.30C
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