1/1/2015 ABC received $300,000 in cash for issuing 10,000 shares of $9.00 par common stock. ABC received $600,000 cash for issuing 2000 shares of $200/par preferred stock ABC purchased 15% of CDE stock for $25,000 cash, ABC is not intending to sell it anytime in the future and definitely not in 2016. The value of the stock at the 12/31/2015 was $24,000. CDE paid ABC $1,000 in dividends. ABC purchased (cash) DEF debt for $10,800 (10,000 face, 1096, 5 year) that it intends to hold until maturity. Interest is paid annually on 1/1. Market rate is 8%. Use the effective interest rate to amortize. Bond value at 12/31/15 was $10,500 ABC purchased GHI 5 year bonds that it is not sure if it will sell or hold until maturity for $25,000 cash. Face of the note is $20,000. It pays 10% interest annually (1/1). Fair value of the bond at year-end was $24,500. Straight-line. ABC purchases 2 widget producing machines at a total cost of $200,000 on credit. The book life of the asset is 5 years. No salvage. During the year (2015): ABC receives a refundable deposit for $100,000 to sell widgets to WTH Company in 2/2016 ABC purchases $40,000 (at a cost of $1.00 per unit) of inventory on credit ABC enters into an agreement to sell 50,000 widgets to ASAP Company for $400,000. They deliver half the widgets. ABC receives $200,000 in cash during the current year and the remaining $200,000 will be paid to ABC in January of 2016. Only half the sale will have tax basis. The credit portion of the sale will not be considered revenues for tax purposes until the cash is received. Prior to delivery, ABC purchases (credit) $40,000 of inventory-cost $2.00/unit. ABC uses LIFO C enters into an agreement to provide FYI services in November of 2015 for $500,000 he agreements are signed in February of 2015. The services are delivered in November 2015. The cash is received in November. ABC pays in cash: a tax-non-deductible fine of $10,000; salaries of $20,000; rent of $2,000 Tax depreciation forthe year is $65,000. The tax rate is 40%. ABC DECLARES $10,000 of dividends. $5,000 each to its common stock holders and to its preferred shareholders. Payment is not until 1/2/2016 Prepare Journal Entries (including closing entries), Income Statement and Balance Sheet (in good form) for 2015 1/1/2015 ABC received $300,000 in cash for issuing 10,000 shares of $9.00 par common stock. ABC received $600,000 cash for issuing 2000 shares of $200/par preferred stock ABC purchased 15% of CDE stock for $25,000 cash, ABC is not intending to sell it anytime in the future and definitely not in 2016. The value of the stock at the 12/31/2015 was $24,000. CDE paid ABC $1,000 in dividends. ABC purchased (cash) DEF debt for $10,800 (10,000 face, 1096, 5 year) that it intends to hold until maturity. Interest is paid annually on 1/1. Market rate is 8%. Use the effective interest rate to amortize. Bond value at 12/31/15 was $10,500 ABC purchased GHI 5 year bonds that it is not sure if it will sell or hold until maturity for $25,000 cash. Face of the note is $20,000. It pays 10% interest annually (1/1). Fair value of the bond at year-end was $24,500. Straight-line. ABC purchases 2 widget producing machines at a total cost of $200,000 on credit. The book life of the asset is 5 years. No salvage. During the year (2015): ABC receives a refundable deposit for $100,000 to sell widgets to WTH Company in 2/2016 ABC purchases $40,000 (at a cost of $1.00 per unit) of inventory on credit ABC enters into an agreement to sell 50,000 widgets to ASAP Company for $400,000. They deliver half the widgets. ABC receives $200,000 in cash during the current year and the remaining $200,000 will be paid to ABC in January of 2016. Only half the sale will have tax basis. The credit portion of the sale will not be considered revenues for tax purposes until the cash is received. Prior to delivery, ABC purchases (credit) $40,000 of inventory-cost $2.00/unit. ABC uses LIFO C enters into an agreement to provide FYI services in November of 2015 for $500,000 he agreements are signed in February of 2015. The services are delivered in November 2015. The cash is received in November. ABC pays in cash: a tax-non-deductible fine of $10,000; salaries of $20,000; rent of $2,000 Tax depreciation forthe year is $65,000. The tax rate is 40%. ABC DECLARES $10,000 of dividends. $5,000 each to its common stock holders and to its preferred shareholders. Payment is not until 1/2/2016 Prepare Journal Entries (including closing entries), Income Statement and Balance Sheet (in good form) for 2015