Comprehensive

Instructions

Chart of Accounts

Labels and Amount Descriptions

General Journal

Balance Sheet

Instructions

Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders equity section:

Jacobi Company

Balance Sheet (Shareholders' Equity)

December 31, 2015

1	Contributed Capital:
2	Preferred stock, 6%, $100 par	$200,000.00
3	Additional paid-in capital on preferred stock	12,000.00	$212,000.00
4	Common stock, $5 par	$150,000.00
5	Additional paid-in capital on common stock	240,000.00	390,000.00
6	Total contributed capital		$602,000.00
7	Retained earnings		627,000.00
8	Accumulated other comprehensive income (loss):
9	Unrealized decrease in value of available-for-sale securities		(41,000.00)
10	Total contributed capital, retained earnings, and accumulated other comprehensive income		$1,188,000.00
11	Less: Treasury stock (1,000 shares of common stock at cost, acquired on 2/3/2015)		(20,000.00)
12	Total Shareholders Equity		$1,168,000.00

The company engaged in the following stock transactions during 2016:

Jan.	4	Paid the semiannual dividend on the outstanding preferred stock and a $1.60 per share annual dividend on the outstanding common stock. These dividends had been declared on December 1, 2015.
	5	Issued 500 shares of preferred stock at $110 per share.
	22	Issued 4,000 shares of common stock at $23 per share.
Apr.	2	Reissued 700 shares of treasury stock at $24 per share.
May	14	Declared a 10% stock dividend on the outstanding common stock, payable on June 29. The common stock is currently selling for $25 per share.
Jun.	4	Declared the semiannual cash dividend on the outstanding preferred stock, payable on July 5.
	29	Issued the stock dividend declared on May 14.
Jul.	5	Paid the cash dividend declared on June 4.
	20	Split the common stock 2-for-1 and reduced the par value to $2.50 per share.
Aug.	3	Declared a property dividend, payable to common shareholders on September 14. The dividend consists of an available-for-sale investment in 50 Drot Company bonds. The bonds had been acquired for $45,000, but have a carrying value of $30,000. The bonds are currently selling for $20,000.
Sep.	14	Paid the property dividend declared on August 3.
Dec.	3	Declared the semiannual cash dividend on the outstanding preferred stock and a $0.90 per share annual dividend on the outstanding common stock.

Required:

1.	Prepare journal entries to record the preceding transactions.
2.	Prepare the December 31, 2016, shareholders equity section (assume that 2016 net income was $270,000).

Chart of Accounts

CHART OF ACCOUNTS

Jacobi Company

General Ledger

	ASSETS
111	Cash
115	Investment in Stock
119	Allowance for Change in Fair Value of Investment
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	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
305	Preferred Stock
311	Common Stock
315	Common Stock to be Distributed
321	Additional Paid-in Capital on Preferred Stock
322	Additional Paid-in Capital on Common Stock
323	Additional Paid-in Capital from Treasury Stock
324	Additional Paid-in Capital from Stock Dividend
329	Unrealized Decrease in Value of Available-for-Sale Securities
331	Retained Earnings
335	Treasury Stock

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
910	Income Tax Expense
913	Loss on Disposal of Investment

Labels and Amount Descriptions

Labels
Contributed Capital
Accumulated Other Comprehensive Income (Loss)
Amount Descriptions
Total Contributed Capital
Total Contributed Capital, Retained Earnings, and Accumulated Other Comprehensive Income
Total Shareholders Equity

General Journal

Prepare journal entries to record the stock transactions . Additional information

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GENERAL JOURNAL

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Balance Sheet

Prepare the December 31, 2016, shareholders equity section (assume that 2016 net income was $270,000). Additional Instructions

Jacobi Company

Partial Balance Sheet

December 31, 2016

1	Shareholders Equity
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