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Posted on Jul 20, 2024

1. ABC COMPANY PURCHASED $500,000 BONDS IN XYZ COMPANY 2. ABC COMPANY PURCHASED $500,000 STOCK IN XYZ COMPANY BC COMPANY PURCHASED 5,000 SHARES OF ITS

1. ABC COMPANY PURCHASED $500,000 BONDS IN XYZ COMPANY 2. ABC COMPANY PURCHASED $500,000 STOCK IN XYZ COMPANY BC COMPANY PURCHASED 5,000 SHARES OF ITS OWN COMMON STOCK FOR ITS TREASURY. THE PAR VALUE IS $3/SH AND THE SELLING PRICE IS $100/SH 4. BASED ON 3. ABOVE, ABC COMPANY SOLD 1,000 SHARES OF ITS TREASURY STOCK FOR $102/SH 5. ABC COMPANY ISSUED 10,000 SHARES OF ITS COMMON STOCK FOR CASH. PV IS $3/SH AND THE SELLING PRICE IS $99/SH 6. ABC COMPANY ISSUED 10,000 SHARES OF ITS COMMON STOCK IN ITS PURCHASE OF LAND. LAND'S ASKING PRICE IS $500,000. LAND'S SELLING PRICE IS $450,000 PV OF STOCK IS $3/SH SELLING PRICE OF STOCK IS $46/SH 7. ABC COMPANY PAID ITS ATTORNEY $20,000 TO INCORPORATE BUSINESS 8. ABC COMPANY ISSUED $400,000 BONDS FOR 97 9. ABC COMPANY ISSUED $400,000 BONDS FOR 102 10. ABC COMPANY DECLARED A 2 FOR 1 STOCK SPLIT WHEN PV WAS $3/SH AND THE NUMBER OF SHARES OUTSTANDING WAS 100,000 11. ABC COMPANY DECLARED A 5% STOCK DIVIDEND. PV IS $1.50/SH AND THERE ARE 200,000 SHARES OF COMMON STOCK OUTSTANDING AND THE SELLING PRICE IS $46/SH 12. DATE OF RECORD FOR 11. ABOVE 13. ISSUED STOCK DIVIDENDS FROM 11. ABOVE 14. DECLARED A $2 CASH DIVIDEND. THERE ARE 210,000 SHARES OF COMMON STOCK OUTSTANDING. THE COMMON STOCK HAS A $1.50 PAR VALUE PER SHARE AND THE STOCK'S SELLING PRICE IS $46/SH 15. DATE OF RECORD FOR 14. ABOVE 16. PAID 14. ABOVE 17. ON 7/1, RECEIVED INTEREST FROM INVESTMENT YOU PURCHASED. THE ORIGINAL INVESTMENT WAS FOR $300,000, PAYING 10% INTEREST SEMI ANNUALLY ON 7/1 AND 1/1. PREPARE THE JOURNAL ENTRY FOR 7/1 18. BASED ON 17 ABOVE, PREPARE THE JOURNAL ENTRY ON 12/31 19. BASED ON 17 ABOVE, PREPARE THE JOURNAL ENTRY ON 1/1 20. CLOSED OUT $400,000 NET INCOME 1. ABC COMPANY PURCHASED $500,000 BONDS IN XYZ COMPANY 2. ABC COMPANY PURCHASED $500,000 STOCK IN XYZ COMPANY BC COMPANY PURCHASED 5,000 SHARES OF ITS OWN COMMON STOCK FOR ITS TREASURY. THE PAR VALUE IS $3/SH AND THE SELLING PRICE IS $100/SH 4. BASED ON 3. ABOVE, ABC COMPANY SOLD 1,000 SHARES OF ITS TREASURY STOCK FOR $102/SH 5. ABC COMPANY ISSUED 10,000 SHARES OF ITS COMMON STOCK FOR CASH. PV IS $3/SH AND THE SELLING PRICE IS $99/SH 6. ABC COMPANY ISSUED 10,000 SHARES OF ITS COMMON STOCK IN ITS PURCHASE OF LAND. LAND'S ASKING PRICE IS $500,000. LAND'S SELLING PRICE IS $450,000 PV OF STOCK IS $3/SH SELLING PRICE OF STOCK IS $46/SH 7. ABC COMPANY PAID ITS ATTORNEY $20,000 TO INCORPORATE BUSINESS 8. ABC COMPANY ISSUED $400,000 BONDS FOR 97 9. ABC COMPANY ISSUED $400,000 BONDS FOR 102 10. ABC COMPANY DECLARED A 2 FOR 1 STOCK SPLIT WHEN PV WAS $3/SH AND THE NUMBER OF SHARES OUTSTANDING WAS 100,000 11. ABC COMPANY DECLARED A 5% STOCK DIVIDEND. PV IS $1.50/SH AND THERE ARE 200,000 SHARES OF COMMON STOCK OUTSTANDING AND THE SELLING PRICE IS $46/SH 12. DATE OF RECORD FOR 11. ABOVE 13. ISSUED STOCK DIVIDENDS FROM 11. ABOVE 14. DECLARED A $2 CASH DIVIDEND. THERE ARE 210,000 SHARES OF COMMON STOCK OUTSTANDING. THE COMMON STOCK HAS A $1.50 PAR VALUE PER SHARE AND THE STOCK'S SELLING PRICE IS $46/SH 15. DATE OF RECORD FOR 14. ABOVE 16. PAID 14. ABOVE 17. ON 7/1, RECEIVED INTEREST FROM INVESTMENT YOU PURCHASED. THE ORIGINAL INVESTMENT WAS FOR $300,000, PAYING 10% INTEREST SEMI ANNUALLY ON 7/1 AND 1/1. PREPARE THE JOURNAL ENTRY FOR 7/1 18. BASED ON 17 ABOVE, PREPARE THE JOURNAL ENTRY ON 12/31 19. BASED ON 17 ABOVE, PREPARE THE JOURNAL ENTRY ON 1/1 20. CLOSED OUT $400,000 NET INCOME