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Carlyon Company listed the following items in its December 31, 2015, financial statements: continued on attachment Instructions: Carlyon Company listed the following items in its
Carlyon Company listed the following items in its December 31, 2015, financial statements:
continued on attachment
Instructions: Carlyon Company listed the following items in its December 31, 2015, financial statements: Investment in Man Company bonds $25,000 Dividends payable: preferred 4,000 Dividends payable: common 40,000 Preferred stock, 8%, $100 par 100,000 Common stock, $10 par 400,000 Additional paid-in capital on preferred stock 20,000 Additional paid-in capital on common stock 210,000 Retained earnings 270,000 During 2016, the following transactions occurred: Feb. 2 Paid the semiannual dividends declared on December 15, 2015. Mar. 5 Declared a property dividend, payable to common shareholders on April 5 in Man Company bonds being held to maturity. The bonds (which have a book value of $25,000) have a current market value of $31,000. Apr. 5 Paid the property dividend. July 6 Declared a $4 per share semiannual cash dividend on preferred stock and a $1.10 per share semiannual dividend on common stock, to be paid on August 17. Aug. 17 Paid the cash dividends. Oct. 15 Declared a 2% stock dividend on common stock to be issued on December 3. The current market price is $22 per share. Dec. 3 28 Issued the stock dividend. Declared a $4 and $1.20 per share semiannual cash dividend on preferred and common stock, respectively, to be paid on February 15, 2017. Required: Next Level Prepare journal entries to record the preceding transactions. CHART OF ACCOUNTS Carlyon Company General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation 191 Investment in Bonds LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable 272 Property Dividends Payable 273 Dividends Payable: Preferred 274 Dividends Payable: Common EQUITY 311 Common Stock 315 Common Stock to be Distributed 324 Additional Paid-in Capital from Stock Dividend 331 Retained Earnings Prepare journal entries to record the 2016 transactions. PAGE 1 GENERAL JOURNAL DATE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 ACCOUNT TITLE POST. REF. DEBIT CREDITStep by Step Solution
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