Question
American Laser, Inc., reported the following account balances on January 1. Accounts Receivable $ 5,000 Accumulated Depreciation 30,000 Additional Paid-in Capital 90,000 Allowance for Doubtful
American Laser, Inc., reported the following account balances on January 1. Accounts Receivable $ 5,000 Accumulated Depreciation 30,000 Additional Paid-in Capital 90,000 Allowance for Doubtful Accounts 2,000 Bonds Payable 0 Buildings 247,000 Cash 10,000 Common Stock, 10,000 shares of $1 par 10,000 Notes Payable (long-term) 10,000 Retained Earnings 120,000 Treasury Stock 0 The company entered into the following transactions during the year. Jan. 15 Issued 5,000 shares of $1 par common stock for $50,000 cash. Feb. 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. Mar. 15 Reissued 2,000 shares of treasury stock for $24,000 cash. Aug. 15 Reissued 600 shares of treasury stock for $4,600 cash. Sept. 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Oct. 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. Oct. 3 Wrote off a $500 balance due from a customer who went bankrupt.
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No | Date | General Journal | Debit | Credit |
---|---|---|---|---|
1 | Jan 15 | Cash | 50,000 | |
Common Stock | 5,000 | |||
Additional Paid-In CapitalCommon Stock | 45,000 | |||
2 | Feb 15 | Treasury Stock | 33,000 | |
Cash | 33,000 | |||
3 | Mar 15 | Cash | 24,000 | |
Treasury Stock | 22,000 | |||
Additional Paid-In Capital, Treasury Stock | 2,000 | |||
4 | Aug 15 | Cash | 4,600 | |
Additional Paid-In Capital, Treasury Stock | 2,000 | |||
Treasury Stock | 6,600 | |||
5 | Sep 15 | Dividends | 14,600 | |
Dividends Payable | 14,600 | |||
6 | Oct 01 | Cash | 101,000 | |
Premium on Bonds Payable | 1,000 | |||
Bonds Payable | 100,000 | |||
7 | Oct 03 | Allowance for Doubtful Accounts | 500 | |
Accounts Receivable | 500 | |||
8 | Dec 31 | Retained Earnings | 14,600 | |
Dividends | 14,600 |
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