ACCT 101 - Fundamentals of Accounting I COMPUTER/GROUP PROJECT ars, Biff Wellington and Duane Pipe are the stockholders of Sharpe corporated. The charter of the corporation authorized 500,000 shares of $2 par Dinah So common stock, and 100,000 shares of $30 par, 4%, preferred sto 1, 2020, th ck. As of January ere were 24,000 shares of common stock issued and outstanding and 5,000 shares of preferred stock issued and outstanding ected transactions completed by Sharpe Incorporated during the fiscal year- ending December 31, 2020, are as follows: Jan 1 Issued 12,500 shares of $2 par common stock at $22, receiving cash Jan 1 Issued 5,800 shares of $30 par, 4%, preferred stock at $70 for cash. Feb 1 Purchased equipment for $195,000, paying $15,000 cash and financing the remainder with a 180-day, 6% note payable Mar 15 Purchased land for $352,000 by issuing 20,000 shares of common stock. Mar 31 Purchased a two-year insurance policy for $36,600. May 1 Purchased 1,750 shares of the company's own common stock at $22 per share. May 31 Issued $1,000,000 of 8-year, 7% bonds with interest payable semiannually. The amount of cash received was $926,896. July 30 Paid the amount due on the note payable signed on February 1 Aug 1 Sold 430 shares of treasury common stock purchased on May 1 for $25 per share. 15 Declared a 2% stock dividend on common stock to be distributed on September 30 to stockholders of record on September 20. The market price per share on September 15 is $25 per share Sept 30 Distributed the stock dividend declared September 15. 1 Borrowed $40,000 from Second Bank by issuing an 7% note. The note is to Oct be repaid in quarterly payments of principal plus interest totaling $1,860 per quarter Oct 16 Sold 370 shares of treasury common stock purchased on May 1 for $18 per share Nov 30 Paid the semiannual interest and amortized the premium on the bonds issued on May 31. Dec 1 Declared a cash dividend at the stated amou nt to preferred stockholders and .40 per share to common stockholders payable on December s stockholder's of record on December 16. 0 to (Hint: don't forget the shares distributed from the stock dividend) Dec 30 Paid the cash dividends declared on December 1 Dec 31 Paid the first quarterly installment of the note issued on October 1 Dec 31 Record revenue for the year of $1,975,000, received $500,000 in cash, the Dec 31 Record expenses for the year, paid in cash (one compound entry): remainder is on account. Rent Utilities Salaries Advertising Medical insurance Commissions Legal and accounting Miscellaneous $170,000 13,200 760,000 140,000 32,000 63,000 18,000 8,400 ACCT 101 - Fundamentals of Accounting I COMPUTER/GROUP PROJECT ars, Biff Wellington and Duane Pipe are the stockholders of Sharpe corporated. The charter of the corporation authorized 500,000 shares of $2 par Dinah So common stock, and 100,000 shares of $30 par, 4%, preferred sto 1, 2020, th ck. As of January ere were 24,000 shares of common stock issued and outstanding and 5,000 shares of preferred stock issued and outstanding ected transactions completed by Sharpe Incorporated during the fiscal year- ending December 31, 2020, are as follows: Jan 1 Issued 12,500 shares of $2 par common stock at $22, receiving cash Jan 1 Issued 5,800 shares of $30 par, 4%, preferred stock at $70 for cash. Feb 1 Purchased equipment for $195,000, paying $15,000 cash and financing the remainder with a 180-day, 6% note payable Mar 15 Purchased land for $352,000 by issuing 20,000 shares of common stock. Mar 31 Purchased a two-year insurance policy for $36,600. May 1 Purchased 1,750 shares of the company's own common stock at $22 per share. May 31 Issued $1,000,000 of 8-year, 7% bonds with interest payable semiannually. The amount of cash received was $926,896. July 30 Paid the amount due on the note payable signed on February 1 Aug 1 Sold 430 shares of treasury common stock purchased on May 1 for $25 per share. 15 Declared a 2% stock dividend on common stock to be distributed on September 30 to stockholders of record on September 20. The market price per share on September 15 is $25 per share Sept 30 Distributed the stock dividend declared September 15. 1 Borrowed $40,000 from Second Bank by issuing an 7% note. The note is to Oct be repaid in quarterly payments of principal plus interest totaling $1,860 per quarter Oct 16 Sold 370 shares of treasury common stock purchased on May 1 for $18 per share Nov 30 Paid the semiannual interest and amortized the premium on the bonds issued on May 31. Dec 1 Declared a cash dividend at the stated amou nt to preferred stockholders and .40 per share to common stockholders payable on December s stockholder's of record on December 16. 0 to (Hint: don't forget the shares distributed from the stock dividend) Dec 30 Paid the cash dividends declared on December 1 Dec 31 Paid the first quarterly installment of the note issued on October 1 Dec 31 Record revenue for the year of $1,975,000, received $500,000 in cash, the Dec 31 Record expenses for the year, paid in cash (one compound entry): remainder is on account. Rent Utilities Salaries Advertising Medical insurance Commissions Legal and accounting Miscellaneous $170,000 13,200 760,000 140,000 32,000 63,000 18,000 8,400