Question
Comprehensive Problem 4 Part 1: Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: 1. Journalize
Comprehensive Problem 4 Part 1:
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows:
1. Journalize the selected transactions.
If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.
CHART OF ACCOUNTS:
CASH
COMMON STOCK
PAID IN CAPITAL IN EXCESS OF PAR-COMMON STOCK
RETAINED EARNINGS
NO ENTRY REQUIRED
TREASURY STOCK
BONDS PAYABLE
PREFERED STOCK
PREMIUM ON BONDS PAYABLE
CASH DIVIDENDS PAYABLE
CASH DIVIDENDS
PAIN IN CAPITAL FROM SALES OF TRESURY STOCK
STOCK DIVIDENDS
STOCK DIVIDENDS DISTRIBUTABLE
DIVIDENDS REVENUE
DISCOUNT ON BONDS PAYABLE
INTEREST EXPENSE
a. Issued 15,000 shares of $20 par common stock at $30, receiving cash.
| Description | Debit | Credit |
|---|---|---|
| Cash | ||
| Common Stock | ||
| Paid-In Capital in Excess of Par-Common Stock |
b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.
| Description | Debit | Credit |
|---|---|---|
| Cash | ||
| Preferred Stock | ||
| Paid-In Capital in Excess of Par-Preferred Stock |
c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.
| Description | Debit | Credit |
|---|---|---|
| Cash | ||
| Bonds Payable | ||
| Premium on Bonds Payable |
d. Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. Journalize the common stock and the preferred stock entries separately.
| Description | Debit | Credit |
|---|---|---|
| Cash Dividends | ||
| Cash Dividends Payable | ||
| Common stock | ||
| Cash Dividends | ||
| Cash Dividends Payable | ||
| Preferred stock |
e. Paid the cash dividends declared in (d).
| Description | Debit | Credit |
|---|---|---|
| Cash Dividends Payable | ||
| Cash |
f. Purchased 8,000 shares of treasury common stock at $33 per share.
| Description | Debit | Credit |
|---|---|---|
| Treasury Stock | ||
| Cash |
g. Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued.
| Description | Debit | Credit |
|---|---|---|
| Cash |
h. Paid the cash dividends to the preferred stockholders.
| Description | Debit | Credit |
|---|---|---|
| Common Stock | ||
| Cash |
i. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f).
| Description | Debit | Credit |
|---|---|---|
| Cash | ||
| Treasury Stock | ||
| Paid-In Capital from Sale of Treasury Stock |
j. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method.
| Description | Debit | Credit |
|---|---|---|
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
15th edition
978-0133428704
