B D F G H E Dandee Candies is a brand new publicly traded company which produces gourmet chocolate gifts for anniverseries, Valentine's Day, etc... The company just begain operations in the first quarter of the year 20XX. Listed below are the transactions the company had during the quarter. Please record the Journal entry for each of these transactions (if necessary) and prepare the three main financial statements for the company (the income statement, statement of retained earnings, and classified balance sheet.) Round numbers in the journal entries to the nearest penny and numbers on the financial statement to the nearest dollar. 1 2 Jan 1) Dandee Candies Board of Directors authorized 500,000 shares of $2 par 3. common stock and 20,000 shares of $50 par, 2% preferred stock. + 4 5 Cash 6 7 8 NO ENTRY REQUIRED 9 Jan 2) Dandee's Candies.issued 200,000 shares of its $2 par common stock for 10 $25 per share 12 13 14 15 Journal Entries Taccounts Income Statement Statement of RE Balance Sheet + Calculation Mode: Automatic Workbook Statistics E B D Jan 2) Dandee's Candies issued 5,000 shares of its $50 par, 2% preferred stock 17 for $80 per share. 18 19 20 21 22 23 Jan 2) Dandee's Candies issued 4%, five-year bonds with a face value of 24. $300,000 at a bond price of 90. The bonds pay interest quarterly, 25 26 27 28 29 30 Jan 2) Dandee's Candies signed a $240,000, 5%, three-year notes payable with Adirondack Savings Bank. Dandee will make quarterly payments on this loan of -31 $20,000 plus interest. 32 33 34 35 E LL F G B D Jan 2) Dandee's Candies signed a $200,000, 9%, twenty-year mortgage with Rorschach Realty & Loans in order to acquire a new production facility. 38 Dandee's will make monthly payment of $2,100 on this mortgage. 39 E 41 42 43 44 Jan 3) Dandee's Candies invested in 500,000 shares of Piper Paper Supply These shares were purchased at $0.20 per share. This was a small investment 45 and Dandee's has no significant influence over the other company 46 47 48 49 50 51 E F D Jan 3) Dandee's Candies purchased $100,000 worth of 4%, five-year corporate bonds at face value from the Mill Street Soap Company. These bonds pay 52 interest quarterly and will be held to maturity, 53 54 55 56 57 58 . Jan 31) Dandee's Candies made a monthly payment of $2,100 to Rorschach for 59 its 9% mortgage. This payment covers both interest and principal. 60 61 62 63 64 65 Feb 1) Dandee's Candles repurchased 20,000 shares of its own previously issued 66 common stock. The shares were repurchased at $20 per share. 67 68 69 E F B D Feb 28) Dandee's Candies made its second monthly payment of $2,100 to Greenbow Savings Bank for its 9% mortgage. This payment covers both interest 73 and principal. 74 75 76 77 78 79 Mar 1) Dandee's Candies sold 5,000 shares of treasury stock purchased on 80 February 1st at a market price of $30 per share. 81 82 83 84 85 86 Mar 1) Dandee's Candies sold 100,000 shares of its investment in Piper Paper -87 Supply for $0.15 per share. 88 89 90 91 02 E D Mar 15) Dandee's Candies declared a $.15 per share dividend on common 94 shares and a normal quarterly dividend on preferred shares. 95 96 97 98 99 100 101 Mar 30) Dandee's Candies paid the dividends declared on March 15th. 102 103 104 105 106 107 Mar 31) Dandee's Candies made its first quarterly payment of $20,000 plus 108 interest on its notes payable with Adirondack Bank. 109 .110 111 112 113 114 E B D Mar 31) Dandee's Candies made a quarterly interest payment on the 4%, five-year bonds the company issued on January 2nd. The discount (premium) 115 on these bonds was amortized using the straight-line method. 116 117 118 119 120 121 Mar 31) Dandee's Candies made its $2,100 monthly payment on the mortgage 122 from Rorschach. 123 124 125 126 127 128 Mar 31) Dandee's Candies received a cash dividend of $.02 per share from its .129 investment in Piper Paper Supply 130 131 132 133 Journal Entries Mar 31) Dandee's Candies received a quarterly interest payment from its bond 136 investment in Mill Street Soap Company 137 138 139 140 141 142 143 Mar 31) Dandee's Candies closed its cash dividend account for the period. 144 145 746 147 148 149 150 151 *152 B D E G H X M C Tally investment HIM Bal) $ Ball Buildings S Bal) s 10 11 12 13 Bal) 14 15 16 12 18 - 19 20 21 count 5 Bal Bal Bal M 2 MAD Banda e com Dividendable 24 $ (Bal $ (Bal $ (Bal Hom + doctor 26 27 28 29 30 21 32 33 34 35 36 37 36 39 40 41 42 S Bal s (Bal 3 Bal Ich Bal Ball A C D F G G H K M $ Bal Ball $ (Bal Cavid rest S (Bal Bal) S $ Bal S ( Ball san $ D E F G A B Prepare Dandee's Candies' Financial Statements for the first quarter of 20XX. The company is taxed at a tax rate of 20% 1 2 3 4 5 Dandee's Candies Income Statement For the Quarter Ended March 31, 20XX 6 $ 3,800,000 2,100,000 s 600,000 805,764 7 Net Sales 8 Cost of Goods Sold 9. Gross Profit 10. Operating Expenses 11 Selling Expenses 12 Administrative Expenses 13 Total Operating Expenses 14 Operating Income 15 Other Revenues and Expenses 16 Interest Revenue 17 Dividend Revenue 18 Loss on Investment Sale 19 Interest Expense 20 Income Before Income Taxes 21 Income Tax Expense 22 Net Income 5 1 Dandee's Candies 2 Statement of Retained Earnings 3 For the Quarter Ended March 31, 20XX 4. 5 Retained earnings, 1-1-XX 6 Net income for quarter ended 3-31-XX 7 8 Common dividends declared during Q1 20XX 9 Preferred dividends declared during Q1 20XX 10' Retained earnings, 3-31-XX 11 12 A B Assets G Liabilities $ 132,200 6 Current Assets Cash Accounts Receivable Equity Investments 10 Other Current Assets 11 Total Current Assets 279.450 Current Liabilities Accounts Payable Dividends Payable.Common Dividends Payable-Preferred Other Current abilities Total Current Liabilities 42.000 121,114 (2500 360.000 (1.650) 13 Noncurrent Assets Buildings 15 Les AcDep. Buildings 16 Equipment 17 Less Acc. Deo-Equipment 10 HTM Debt Investments 15 Total Noncurrent Assets 20 20 22 2 Long term Debt Notes Payable Bonds Payable Discount on Bonds Payable Mortgages Payable Total Long-term Debt + Total abilities Stockholders' Equity 25 Common Stock ima PC Common Preferred Stock 5100 par PIC.Preferred PIC.Tury 22 24 20 Stockholders Equity Common Stock 51 por PIC-Common Preferred Stock 5100 par PC Preferred Picury Total Paid in Capital sory Stock Retained Earning Total Stockholders Equity Total Liabilities & Stockholders Equity 10 31 Total Assets 3 25