100 points Part 1 Instructions For Instructor: Even 100's between 100 and 4000) Record the following journal entries for ABC Corporation on the joumal in the provided Student Input Form (Excel file) Use the letter for each as the date Requirements and Basic Instructions: 1. Each student should complete the project on an individual basis. Tutors and others are not allowed to help students on the project. If a project is not completed on an independent, individual basis, the student will receive zero points for the project 2. Instructors can only answer questions on the project in general 3. Students should complete the project and turn it in to the dropbox by the due date. The instructor reserves the right to not accept late projects or deduct points on projects tumed in past the due date. 4. There are different versions of the project that will be assigned (course mailed) by the instructor. 5. By submitting in the Canvas dropbox you are "signing" that you have followed the instructions above. Joumal Entries A. Issued 9000 shares of $10 par common stock at $11, receiving cash. (6 points) B. Issued $ 180000 of 10 year 10% bonds at a market (effective) interest rate of 0%. with interest payable semiannually. (6 points) Use the Present Value Tables in Appendix A of text book. Round all calculations to the nearest dollar. C. Declared a dividend of $0.25 per share on common stock. On date of declaration, 28800 shares of common stock were outstanding D. Paid cash dividend from (c) above. E. Purchased 10800 shares of Jones Company for $10 per share, plus $5400 commission, Our company purchased less than 20% of the outstanding stock of Jones Company. F. Declared a 5% stock dividend on the $10 par common stock when the market price was $25 per share. There were 28800 Shares outstanding. points) (2 points) (3 points) (6 points) G. Distributed the stock dividends declared in (F). (2 points) H. Purchased $5000 of 5% bonds at par. (3 points) Interest is payable semiannually. I. Purchased 540 shares of treasury common stock for $12 per share. (3 points) J. Received semiannual interest from bonds purchased in (H). (3 points) (3 points) K. Received a total cash dividend of $1080 from Jones Company. L. Received a $1800 dividend from our investment in Masco Company stock. This investment is accounted for under the equity method. (3 points) M. Sold, at $17 per share, 270 shares of treasury common stock purchased in (1) (6 points) N. Sold 2160 shares of Jones company stock purchased in (E) for $13 per share, including commission. (6 points) O. Masco Company's total eamings are $90000. We own 40%. Record the namings for our company using the equity method. P. Sold the bonds purchased in (H) at 103 plus $63 in accrued interest Q. At the end of the accounting period, the remaining shares of Jones Company stock increased $2.00 per share R. Record the payment of semiannual Interest on the bonds issued in (B) and the amortization of the premium for six months The amortization is determined using the straight-line method: Round al calculations to the nearest dolar. Part 2 Instructions: points P Page 2 The balances listed below are for December 31 and already include the journal entries you just prepared except for the stockholders' equity accounts. The balances listed for the stockholders' equity accounts are the January 1 balances. You will need to utilize the joumal entries you just prepared to complete the Statement of Stockholders' Equity. Prepare a multistep income statement, a statement of stockholders' equity, and a classified balance sheet in good form for the year ended December 31, 20X1. Use the Student Input Form (Excel File) to complete the Financial Statements Cash Accounts receivable Debit Credit 540,000 358,000 Allowance for doubtful accounts 18.000 Equity Investments at cost 90,000 Valuation allowance for Equity Investments 9,000 Merchandise inventory at lower of cost (FIFO) or market 36,000 Prepaid expenses 5,400 Interest receivable 3,600 Investment in Masco Company stock 27,000 Store buildings and equipment i 549,000 Accumulated depreciation-store buildings and equipment Accounts payable 270,000 158,820 Income tax payable 2,000 Bonds payable, 10%, due in 10 years 180,000 Premium on bonds payable 9,000 Retained earnings, January 1, 20X1 410,490 Cash dividends, January 1, 20X1 balance o Stock Dividends, January 1, 20x1 balance 1 O Common stock, $10 par (100,000 shares authorized; 19800 shares outstanding), January 1, 20x1 198,000 Paid-in capital in excess of par-common stock, January 1, 20X1 19,800 Paid-in capital from sale of treasury stock, January 1, 20X1 Treasury stock, January 1, 20X1 Sales Gain from sale of investment Unrealized gain(loss) on Equity Investments Interest revenue Dividend revenue Income of Masco Company 1,250,000 1,800 17,280 1,440 4,860 36,000 Cost of goods sold 720,000 Advertising expense $18,000 Depreciation expense-store buildings and equipment 12,600 Miscellaneous selling expenses 9,000 Sales commissions 36,000 Office rent expense 90,000 Office salaries expense 108,000 Miscellaneous administrative expenses Interest expense 1,800 9,000 72,000 Income tax expense