61 Project #10: Stocks Business has been better than Fido's Food Mart even imagined! It is quickly realized that they need to raise additional capital to continue to grow. The accountant arranges for the following transactions to occur: Required: 1. Record the journal entry to account for a December 31, 20XX issuance of 20 shares at $225 per share, par $210 a. Show the balancing effects on the accounting equation b. Record the adjusting journal entry in two-line format using a debit and a credit. c. Show T-Accounts with beginning balances, transactions & end balances. 2. Record the journal entry to declare a $2,200 dividend on December 31, 20XX to be paid on March 15 of the following year. a. Show the balancing effects on the accounting equation b. Record the adjusting journal entry in two-line format using a debit and a credit. c. Show T-Accounts with beginning balances, transactions & end balances. 3. Record the journal entry to repurchase 5 share of Treasury Stock @ $225.00 per share on December 31, 20XX to liquidate a partner who adopted a cat and didn't want to be part pet store only selling dog food. a. Show the balancing effects on the accounting equation b. Record the adjusting journal entry in two-line format using a debit and a credit. c. Show T-Accounts with beginning balances, transactions & end balances. of a Prepare a new Adjusted Trial Balance and highlight the accounts and amounts changed. 4. woopoasaungg/87 oo B Project #10: Stocks te Fido's Food Mart Adjusted Trial Balance December 31, 20xx Credits Debits Account Title 52,898 Cash 10,250 Accounts Receivable 1,260 Less: Allowance for Doubtful Accounts 20,390 Inventory 650 Supplies Prepaid Insurance Equipment Vehicle 320 30,550 12,250 1,780 Less: Accumulated Depreciation- Equipment & Vehicle 62,128 Accounts Payable Interest Payable 400 275 Uncamed Revenue (Gift Cards) Dividends Payable Bonds Payable (mature 12/31/XX) Common Stock (200 shares$210/share, par $210) Additional Paid In Capital- Common Stock 0 12,000 42,000 0 Dividends Declared Treasury Stock Retained Earnings 0 0 Sales Revenae 134,725 Less: Sales Discount 40 Cost of Goods Sold 64,330 Operating Expenses Bad Debt Expense Depreciation Expense Insurance Expense Interest Expense 34,840 3,260 1,780 160 400 Rent Expense Supplies Expense Wages Expense Totals 5,750 1,200 15,500 254,568 254,568