Answer only number c
b. Prepare journal entries, as needed, for each of the following fiscal 1996 "transactions." All figures are in thousands of dollars. 1. The company purchased $7,222,670 of groceries on account. 2. The company had $8,476,918 in cash sales to customers. The cost of these groceries was $6,661,516. 3. The company had $529,014 in credit sales to large institutional customers. The cost of these groceries was $410,409. 4. The company paid $7,115,247 of accounts payable. 5. The company paid cash for employees' wages and other operating expenses totaling $1,252,553. 6. The company received $250,010 when it issued a short-term note payable. 7. A consulting firm issued a report stating that the "Food Lion" brand name is worth $500,000. 8. The company collected $505,846 of accounts receivable. 9. The company purchased property and equipment for $283,564 in cash. 10. The company repaid $83,420 of its long-term debt. 11. The company acquired the Kash N Karry food chain for $121,578 in cash. The purchase included inventory of $49,229, property, plant and equipment of $103,078, goodwill (an intangible asset) of $269,348. As well, Food Lion assumed Kash N Karry's noncurrent liabilities of $300,077. 12. Food Lion disposed of property with a book value of $27,930 for cash proceeds of $27,464. The difference is considered an operating loss on the income statement. 13. During fiscal 1996, the company paid bondholders $76,631 of interest. 14. Food Lion management signed a new labor agreement with its employees. The two-year agreement takes effect on January 1,1997 and calls for total wage increases of $150,000 per year. 15. The company paid $12,258 to settle certain noncurrent liabilities. 16. The company issued additional shares of Class A common stock and received $3,086 in cash. 17. During the year the company had several other transactions. In particular, the company repurchased $44,345 worth of its own stock, converted $927 worth of debt to stock, and signed additional long-term leases. These transactions have already been entered into the spreadsheet in aggregate. Only the stock repurchase transaction affected cash. 18. The company declared and paid $52,310 of dividends. 19. The company paid income tax and recorded deferred tax assets and liabilities. These transactions have already been entered into the spreadsheet. 20. On December 28,1996 , the company paid $33,660 for a one-year casualty and property insurance policy that covers calendar 1997. c. Post the joumal entries for the transactions to the spreadsheet. Note that some of the spreadsheet headings for liability and shareholders' equity accounts are in summary form. b. Prepare journal entries, as needed, for each of the following fiscal 1996 "transactions." All figures are in thousands of dollars. 1. The company purchased $7,222,670 of groceries on account. 2. The company had $8,476,918 in cash sales to customers. The cost of these groceries was $6,661,516. 3. The company had $529,014 in credit sales to large institutional customers. The cost of these groceries was $410,409. 4. The company paid $7,115,247 of accounts payable. 5. The company paid cash for employees' wages and other operating expenses totaling $1,252,553. 6. The company received $250,010 when it issued a short-term note payable. 7. A consulting firm issued a report stating that the "Food Lion" brand name is worth $500,000. 8. The company collected $505,846 of accounts receivable. 9. The company purchased property and equipment for $283,564 in cash. 10. The company repaid $83,420 of its long-term debt. 11. The company acquired the Kash N Karry food chain for $121,578 in cash. The purchase included inventory of $49,229, property, plant and equipment of $103,078, goodwill (an intangible asset) of $269,348. As well, Food Lion assumed Kash N Karry's noncurrent liabilities of $300,077. 12. Food Lion disposed of property with a book value of $27,930 for cash proceeds of $27,464. The difference is considered an operating loss on the income statement. 13. During fiscal 1996, the company paid bondholders $76,631 of interest. 14. Food Lion management signed a new labor agreement with its employees. The two-year agreement takes effect on January 1,1997 and calls for total wage increases of $150,000 per year. 15. The company paid $12,258 to settle certain noncurrent liabilities. 16. The company issued additional shares of Class A common stock and received $3,086 in cash. 17. During the year the company had several other transactions. In particular, the company repurchased $44,345 worth of its own stock, converted $927 worth of debt to stock, and signed additional long-term leases. These transactions have already been entered into the spreadsheet in aggregate. Only the stock repurchase transaction affected cash. 18. The company declared and paid $52,310 of dividends. 19. The company paid income tax and recorded deferred tax assets and liabilities. These transactions have already been entered into the spreadsheet. 20. On December 28,1996 , the company paid $33,660 for a one-year casualty and property insurance policy that covers calendar 1997. c. Post the joumal entries for the transactions to the spreadsheet. Note that some of the spreadsheet headings for liability and shareholders' equity accounts are in summary form
