ACCT 101-Fundamentals of Accounting I COMPUTER/GROUP PROJECT Dinah Soars, Biff Wellington and Duane Pipe are the stockholders of Sharpe Incorporated. The charter of the corporation authorized 500,000 shares of $2 par common stock, and 100,000 shares of $30 par, 4%, preferred stock. As of January 1, 2020, there were 24,000 shares of common stock issued and outstanding and 5,000 shares of preferred stock issued and outstanding. Selected 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, 496, preferred stock at $70 for cash. 1 Purchased equipment for $195,000, paying $15,000 cash and financing the remainder with a 180-day, 6% note payable. 15 Purchased land for $352,000 by issuing 20,000 shares of common stock Maf 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 May 31 Issued $1,000,000 of 8-year, 7% bonds with interest payable semiannually July 30 Paid the amount due on the note payable signed on February 1. Aug/1 Sol Sept 15 Declared a 2% stock dividend on common stock to be distributed on share. The amount of cash received was $926,896 d 430 shares of treasury common stock purchased on May 1 for $25 per 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. Oct 1 Borrowed $40,000 from Second Bank by issuing an 7% note The note is to 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 amount to preferred stockholders and 40 per share to common stockholders payable on December 30 to stockholder's of record on December 16 (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 remainder is on account. Dec 31 Rec ord expenses for the year, paid in cash (one compound entry) $170,000 13,200 760,000 140,000 32,000 Rent Salaries Advertising Medical insurance Commissions Legal and accounting Miscellaneous 18,000 8,400 Adjusting Entries (1) The employees' accrued vacation pay at the end of the year was $11,880 (2) Record depreciation on the equipment purchased on February 1, using the straight-line method. The equipment has an estimated 9-year useful life and an estimated residual value of $2,760. Record insurance expired on the policy purchased March 31. Record the adjusting entry for the interest accrued and the amortization of the (3) (4) premium on the bonds payable since the last interest payment. (round the amount to the nearest dollar ACCT 101-Fundamentals of Accounting I COMPUTER/GROUP PROJECT Dinah Soars, Biff Wellington and Duane Pipe are the stockholders of Sharpe Incorporated. The charter of the corporation authorized 500,000 shares of $2 par common stock, and 100,000 shares of $30 par, 4%, preferred stock. As of January 1, 2020, there were 24,000 shares of common stock issued and outstanding and 5,000 shares of preferred stock issued and outstanding. Selected 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, 496, preferred stock at $70 for cash. 1 Purchased equipment for $195,000, paying $15,000 cash and financing the remainder with a 180-day, 6% note payable. 15 Purchased land for $352,000 by issuing 20,000 shares of common stock Maf 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 May 31 Issued $1,000,000 of 8-year, 7% bonds with interest payable semiannually July 30 Paid the amount due on the note payable signed on February 1. Aug/1 Sol Sept 15 Declared a 2% stock dividend on common stock to be distributed on share. The amount of cash received was $926,896 d 430 shares of treasury common stock purchased on May 1 for $25 per 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. Oct 1 Borrowed $40,000 from Second Bank by issuing an 7% note The note is to 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 amount to preferred stockholders and 40 per share to common stockholders payable on December 30 to stockholder's of record on December 16 (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 remainder is on account. Dec 31 Rec ord expenses for the year, paid in cash (one compound entry) $170,000 13,200 760,000 140,000 32,000 Rent Salaries Advertising Medical insurance Commissions Legal and accounting Miscellaneous 18,000 8,400 Adjusting Entries (1) The employees' accrued vacation pay at the end of the year was $11,880 (2) Record depreciation on the equipment purchased on February 1, using the straight-line method. The equipment has an estimated 9-year useful life and an estimated residual value of $2,760. Record insurance expired on the policy purchased March 31. Record the adjusting entry for the interest accrued and the amortization of the (3) (4) premium on the bonds payable since the last interest payment. (round the amount to the nearest dollar