21. On January 1, YR01 Ford Inc. began business operations. The company's year-end is December 31. Required: Prepare formal journal entries that would be recorded on the dates listed below. The company uses reversing journal entries. For convenience, round all final answers to the nearest dollar (do not round intermediate calculations). Date January 1, YR01 Event Sold 1,000 shares of common stock for $15 per share. The stock has a par value of $1 per share. January 10, YR01 Received and paid a bill from the Mark & Jones law firm for services rendered in helping the company issue the common stock. The amount of the bill was $400. February 8, YR01 Sold 100 shares of preferred stock for $110 per share. Class A preferred is cumulative, non- participating, has a par value of $100 per share, and has a dividend rate of 5%. Each share of preferred stock can be converted into 5 shares of common stock. August 1, YR01 Sold $5,000 of convertible bonds at 97. Each bond has a face value of $1,000 and a coupon rate of 6%. These bonds are dated May 1, YR01 and mature April 30, X11 (term = 10 years). The yield to maturity on these bonds is 6.2%. Each bond is convertible into 40 shares of common stock. Interest on these bonds is paid each May 1 and November 1. Company policy is to accrue interest and record amortization of discount/premium (straight-line method) once each year on December 31. August 15, YR01 Received and paid a bill from the Mark & Jones law firm for services rendered in helping the company issue the convertible bonds. The amount of the bill was $201. ember 5, YR01 Sold in a lump sum sale ckage of 100 common shares and 1,000 warrants for a total of $4,000. Each warrant entitles the holder to purchase one share of common stock for $30 during the period October YR01 to December X10. At the date of the sale the common had a market value of $24 per share and the market value of the warrants was unknown. November 1, YR01 Paid interest on the convertible bonds. December 1, YR01 The Board of Directors declared the annual dividend on preferred stock. The date of record was set as December 24, YR01 and the date of payment was set as January 15, YR02. December 24, YR01 Date of record for the preferred dividend declared on December 1, YR01. December 31, YR01 Made all necessary adjusting entries. January 15, YR02 Paid the dividend on preferred stock. February 1, YR02 The board of directors declared a 10% stock dividend on common stock. At this date the common stock is selling for $25 each. The date of record is February 15, YR02 and the date of distribution is July 1, YR02. Interest on the bonds was paid. Also, on this date owners of $2,000 of the convertible bonds converted their bonds to common stock. On this date market prices were: common stock=$28; bonds (each)=$980. May 1, YR02 May 15, YR02 Warrant holders exercised 100 warrants when the market price of the common stock was $32. On this date the company issued the appropriate number of common shares. June 1, YR02 Shareholders of preferred stock converted 20 shares of the stock to common shares. At the date of conversion the market price of the preferred was $115 and the market price of the common was $30. Terms of the preferred stock indenture agreement require that, at the date of conversion, holders be paid any dividends in arrears and a prorata portion of the current year preferred dividends (basis of proration is the portion of the year that the preferred stock was outstanding). Accordingly, at this date the company paid the dividends owed. +1 autham I. Vot Talks lara Thalai Heart Pepertimanale would be the site tait the The Food film | y 4 a la | parisipales, has 5100 | B 15, hai. tat that are the sales me - 10 | Drosernthaal pain wer of the atta Yale XI - Corata, Dean artinent. The in Deater 3 TIL Trar petariat aritaini hariart a Dosai 1, 2 Thathar II (Masala sak The lara day 13, Vaar May 15, ite price 10 Secoders preferred dome 2 shares her kan share idee Timele medlemmer them Date 21. On January 1, YROI Ford Inc. began business operations. The company's year-end is December 31. Required: Prepare formal journal entries that would be recorded on the dates listed below. The company uses reversing journal entries. For convenience, round all final answers to the nearest dollar (do not round intermediate calculations) Event January 1, YRI Sold 1,000 shares of common stock for $15 per share. The stock has a par value of $1 per share. January 10, YROI Received and paid a bill from the Mark & Jones law firm for services rendered in helping the company issue the common stock. The amount of the bill was $400 February 8, YR01 Sold 100 shares of preferred stock for $110 per share. Class A preferred is cumulative, non- participating, has a par value of $100 per share, and has a dividend rate of 5%. Each share of preferred stock can be converted into shares of common stock August 1, YR01 Sold $5,000 of convertible bonds at 97. Each bond has a face value of $1,000 and a coupon rate of 6%. These bonds are dated May 1, YROI and mature April 30, X11 (term - 10 years). The yield to maturity on these bonds is 6.2%. Each bond is convertible into 40 shares of common stock. Interest on these bonds is paid cach May 1 and November 1. Company policy is to accrue interest and record amortization of discount/premium (straight-line method) once cach year on December 31 August 15, YROI Received and paid a bill from the Mark & Jones law firm for services rendered in helping the company issue the convertible bonds. The amount of the bill was $201. September 5, YRI Sold in a lump sum sale a package of 100 common shares and 1,000 warrants for a total price of $4,000. Each warrant entitles the holder to purchase one share of common stock for $30 during the period October YROI to December X10. At the date of the sale the common had a market value of $24 per share and the market value of the warrants was unknown, November 1, YROI Paid interest on the convertible bonds December 1, YRI The Board of Directors declared the annual dividend on preferred stock. The date of record was set as December 24, YROI and the date of payment was set as January 15, YR02. December 24, YROI Date of record for the preferred dividend declared on December 1, YROI. December 31, YRI Made all necessary adjusting entries. January 15, YR02 Paid the dividend on preferred stock. February 1, YR02 The board of directors declared a 10% stock dividend on common stock. At this date the common stock is selling for $25 cach. The date of record is February 15, YR02 and the date of distribution is July 1. YRO2 May 1, YR02 Interest on the bonds was paid. Also, on this date owners of $2,000 of the convertible bonds converted their bonds to common stock. On this date market prices were common stock-$28; bonds (cach)-$980. May 15, YR02 Warrant holders exercised 100 warrants when the market price of the common stock was $32. On this date the company issued the appropriate number of common shares June 1, YR02 Shareholders of preferred stock converted 20 shares of the stock to common shares. At the date of conversion the market price of the preferred was $115 and the market price of the common was $30. Terms of the preferred stock indenture agreement require that, at the date of convention, holdersbe paid any dividends in arrears and a prorata portion of the current year preferred dividends (basis of proration is the portion of the year that the preferred stock was outstanding). Accordingly, at this date the company paid the dividends owed 21. On January 1, YR01 Ford Inc. began business operations. The company's year-end is December 31. Required: Prepare formal journal entries that would be recorded on the dates listed below. The company uses reversing journal entries. For convenience, round all final answers to the nearest dollar (do not round intermediate calculations). Date January 1, YR01 Event Sold 1,000 shares of common stock for $15 per share. The stock has a par value of $1 per share. January 10, YR01 Received and paid a bill from the Mark & Jones law firm for services rendered in helping the company issue the common stock. The amount of the bill was $400. February 8, YR01 Sold 100 shares of preferred stock for $110 per share. Class A preferred is cumulative, non- participating, has a par value of $100 per share, and has a dividend rate of 5%. Each share of preferred stock can be converted into 5 shares of common stock. August 1, YR01 Sold $5,000 of convertible bonds at 97. Each bond has a face value of $1,000 and a coupon rate of 6%. These bonds are dated May 1, YR01 and mature April 30, X11 (term = 10 years). The yield to maturity on these bonds is 6.2%. Each bond is convertible into 40 shares of common stock. Interest on these bonds is paid each May 1 and November 1. Company policy is to accrue interest and record amortization of discount/premium (straight-line method) once each year on December 31. August 15, YR01 Received and paid a bill from the Mark & Jones law firm for services rendered in helping the company issue the convertible bonds. The amount of the bill was $201. ember 5, YR01 Sold in a lump sum sale ckage of 100 common shares and 1,000 warrants for a total of $4,000. Each warrant entitles the holder to purchase one share of common stock for $30 during the period October YR01 to December X10. At the date of the sale the common had a market value of $24 per share and the market value of the warrants was unknown. November 1, YR01 Paid interest on the convertible bonds. December 1, YR01 The Board of Directors declared the annual dividend on preferred stock. The date of record was set as December 24, YR01 and the date of payment was set as January 15, YR02. December 24, YR01 Date of record for the preferred dividend declared on December 1, YR01. December 31, YR01 Made all necessary adjusting entries. January 15, YR02 Paid the dividend on preferred stock. February 1, YR02 The board of directors declared a 10% stock dividend on common stock. At this date the common stock is selling for $25 each. The date of record is February 15, YR02 and the date of distribution is July 1, YR02. Interest on the bonds was paid. Also, on this date owners of $2,000 of the convertible bonds converted their bonds to common stock. On this date market prices were: common stock=$28; bonds (each)=$980. May 1, YR02 May 15, YR02 Warrant holders exercised 100 warrants when the market price of the common stock was $32. On this date the company issued the appropriate number of common shares. June 1, YR02 Shareholders of preferred stock converted 20 shares of the stock to common shares. At the date of conversion the market price of the preferred was $115 and the market price of the common was $30. Terms of the preferred stock indenture agreement require that, at the date of conversion, holders be paid any dividends in arrears and a prorata portion of the current year preferred dividends (basis of proration is the portion of the year that the preferred stock was outstanding). Accordingly, at this date the company paid the dividends owed. +1 autham I. Vot Talks lara Thalai Heart Pepertimanale would be the site tait the The Food film | y 4 a la | parisipales, has 5100 | B 15, hai. tat that are the sales me - 10 | Drosernthaal pain wer of the atta Yale XI - Corata, Dean artinent. The in Deater 3 TIL Trar petariat aritaini hariart a Dosai 1, 2 Thathar II (Masala sak The lara day 13, Vaar May 15, ite price 10 Secoders preferred dome 2 shares her kan share idee Timele medlemmer them Date 21. On January 1, YROI Ford Inc. began business operations. The company's year-end is December 31. Required: Prepare formal journal entries that would be recorded on the dates listed below. The company uses reversing journal entries. For convenience, round all final answers to the nearest dollar (do not round intermediate calculations) Event January 1, YRI Sold 1,000 shares of common stock for $15 per share. The stock has a par value of $1 per share. January 10, YROI Received and paid a bill from the Mark & Jones law firm for services rendered in helping the company issue the common stock. The amount of the bill was $400 February 8, YR01 Sold 100 shares of preferred stock for $110 per share. Class A preferred is cumulative, non- participating, has a par value of $100 per share, and has a dividend rate of 5%. Each share of preferred stock can be converted into shares of common stock August 1, YR01 Sold $5,000 of convertible bonds at 97. Each bond has a face value of $1,000 and a coupon rate of 6%. These bonds are dated May 1, YROI and mature April 30, X11 (term - 10 years). The yield to maturity on these bonds is 6.2%. Each bond is convertible into 40 shares of common stock. Interest on these bonds is paid cach May 1 and November 1. Company policy is to accrue interest and record amortization of discount/premium (straight-line method) once cach year on December 31 August 15, YROI Received and paid a bill from the Mark & Jones law firm for services rendered in helping the company issue the convertible bonds. The amount of the bill was $201. September 5, YRI Sold in a lump sum sale a package of 100 common shares and 1,000 warrants for a total price of $4,000. Each warrant entitles the holder to purchase one share of common stock for $30 during the period October YROI to December X10. At the date of the sale the common had a market value of $24 per share and the market value of the warrants was unknown, November 1, YROI Paid interest on the convertible bonds December 1, YRI The Board of Directors declared the annual dividend on preferred stock. The date of record was set as December 24, YROI and the date of payment was set as January 15, YR02. December 24, YROI Date of record for the preferred dividend declared on December 1, YROI. December 31, YRI Made all necessary adjusting entries. January 15, YR02 Paid the dividend on preferred stock. February 1, YR02 The board of directors declared a 10% stock dividend on common stock. At this date the common stock is selling for $25 cach. The date of record is February 15, YR02 and the date of distribution is July 1. YRO2 May 1, YR02 Interest on the bonds was paid. Also, on this date owners of $2,000 of the convertible bonds converted their bonds to common stock. On this date market prices were common stock-$28; bonds (cach)-$980. May 15, YR02 Warrant holders exercised 100 warrants when the market price of the common stock was $32. On this date the company issued the appropriate number of common shares June 1, YR02 Shareholders of preferred stock converted 20 shares of the stock to common shares. At the date of conversion the market price of the preferred was $115 and the market price of the common was $30. Terms of the preferred stock indenture agreement require that, at the date of convention, holdersbe paid any dividends in arrears and a prorata portion of the current year preferred dividends (basis of proration is the portion of the year that the preferred stock was outstanding). Accordingly, at this date the company paid the dividends owed