Question
Accounting II Assessment I ndicator Project You have been hired as a new Junior Accountant in the Manhattan Electronics Department Division and will be in
Accounting II
Assessment Indicator Project
You have been hired as a new Junior Accountant in the ManhattanElectronics Department Division and will be in charge of recording the 2021 daily operations transactions of the company:
Jan. 1 Manhattan Electronics opened with the following stockholders:
Name
Investment
Stock Type
Mary Jenkins
$ 50,000
Preferred Stock
Robert Moore
$ 50,000
Common Stock
Nancy Lee
$ 50,000
50% Preferred 50% Common
Note: Common Stock Par Value$ 1.00 Preferred Stock Par Value: $ 5.00
Jan. 1Paid $40,000 to a real estate company the rent for a one-year period beginning on Jan. 1, 2021.
Jan. 1 The company issued a $1,000,000, 6%, five-year bond that pays semiannual interest on June 30 and December 31, receiving cash of $936,420.
Jan. 2Issued 50,000 shares of $ 1 par common stock and sold them at $ 45 per share.
Jan. 2Purchased a delivery truck from Ford Motor Co. $40,000 cash. The useful life is 6 years and its residual value $ 400.
Jan. 3Issued 25,000 shares of $ 5 par preferred stock and sold them at $60 per share.
Jan. 4Purchased Office Equipment from Staples $5,000 on account.
Jan. 5Bought merchandise on account $100,000 from Samsung, terms: n/30. The company uses the perpetual inventory system.
Jan. 6Credit sales totaled $700,000. The cost of goods sold was $350,000.
Jan. 15Paid $2,000 on Insurance for the store building for the month of January.
Jan. 17Paid $70,000 on account for the merchandise purchased in Jan. 5.
Jan. 18Collected $220,000 from customers on account.
Jan. 19Declared cash dividends of $0.85 per share on preferred stock and $0.25 per share on common stock.
Jan. 20Purchased 10,000 shares of treasury common for $75 per share.
Jan. 21Paid the cash dividends declared on Jan. 19.
Jan. 22Sold 7,000 shares of treasury common for $85 per share.
Jan. 23Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $80 per share.
Jan. 24Sold 1,000 shares of treasury common for $65 per share.
Jan. 29Issued the certificates for the dividends declared on Jan. 23.
Jan. 31Sold the delivery truck for $ 39,700 in cash.
Jan. 31Calculate and record the monthly depreciation of the equipment, its useful life 5 years and its residual value = 0.
Jan. 31Recorded the amount of prepaid rent that expired for the month.
June 30Make the first interest payment of the bonds issued on Jan. 1. Use the SLM for the discount amortization. Required:
a)Record the Journal entries
Accounting II
Assessment Indicator Project
You have been hired as a new Junior Accountant in the ManhattanElectronics Department Division and will be in charge of recording the 2021 daily operations transactions of the company:
Jan. 1 Manhattan Electronics opened with the following stockholders:
Name | Investment | Stock Type |
Mary Jenkins | $ 50,000 | Preferred Stock |
Robert Moore | $ 50,000 | Common Stock |
Nancy Lee | $ 50,000 | 50% Preferred 50% Common |
Note: Common Stock Par Value$ 1.00 Preferred Stock Par Value: $ 5.00
Jan. 1Paid $40,000 to a real estate company the rent for a one-year period beginning on Jan. 1, 2021.
Jan. 1 The company issued a $1,000,000, 6%, five-year bond that pays semiannual interest on June 30 and December 31, receiving cash of $936,420.
Jan. 2Issued 50,000 shares of $ 1 par common stock and sold them at $ 45 per share.
Jan. 2Purchased a delivery truck from Ford Motor Co. $40,000 cash. The useful life is 6 years and its residual value $ 400.
Jan. 3Issued 25,000 shares of $ 5 par preferred stock and sold them at $60 per share.
Jan. 4Purchased Office Equipment from Staples $5,000 on account.
Jan. 5Bought merchandise on account $100,000 from Samsung, terms: n/30. The company uses the perpetual inventory system.
Jan. 6Credit sales totaled $700,000. The cost of goods sold was $350,000.
Jan. 15Paid $2,000 on Insurance for the store building for the month of January.
Jan. 17Paid $70,000 on account for the merchandise purchased in Jan. 5.
Jan. 18Collected $220,000 from customers on account.
Jan. 19Declared cash dividends of $0.85 per share on preferred stock and $0.25 per share on common stock.
Jan. 20Purchased 10,000 shares of treasury common for $75 per share.
Jan. 21Paid the cash dividends declared on Jan. 19.
Jan. 22Sold 7,000 shares of treasury common for $85 per share.
Jan. 23Declared a 5% stock dividend on common stock, to be capitalized at the market price of the stock, which is $80 per share.
Jan. 24Sold 1,000 shares of treasury common for $65 per share.
Jan. 29Issued the certificates for the dividends declared on Jan. 23.
Jan. 31Sold the delivery truck for $ 39,700 in cash.
Jan. 31Calculate and record the monthly depreciation of the equipment, its useful life 5 years and its residual value = 0.
Jan. 31Recorded the amount of prepaid rent that expired for the month.
June 30Make the first interest payment of the bonds issued on Jan. 1. Use the SLM for the discount amortization. Required:
a)Record the Journal entries
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