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 1 journal entries to the nearest penny and numbers on the financial statement to the nearest dollar. 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. 000 A 5 6 8 NO ENTRY REQUIRED 9 Jan 2) Dandee's Candies issued 200,000 shares of its $2 par common stock for $25 per 10 share 11 12 13 14 15 16 Jan 2) Dandee's Candies Issued 5,000 shares of its $50 par, 2% preferred stock for $80 17 per share -18 19 20 21 22 23 Ian 2 Dandeels Candies cued five vear bonds with a face value of $300.000 ata Journal Entries Taccounts Income Statement Statement of RE Balance Sheet Ready Jan 2) Dandee's Candies issued 4%, five-year bonds with a face value of $300,000 at a 24 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 36 37 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. Dandee's will make 38 monthly payment of $2,100 on this mortgage 39 40 41 42 43 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 and Dandee's 45 has no significant influence over the other company 46 47 48 49 Journal Entries Taccounts Income Statement Statement of RE Balance Sheet E F 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 and Dandee's 45 has no significant influence over the other company. 46 47 48 49 50 51 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 interest quarterly 52 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 its 9% 59 mortgage. This payment covers both interest and principal 60 61 62 63 64 65 Feb 1) Dandee's Candies repurchased 20,000 shares of its own previously issued 66 common stock. The shares were repurchased at $20 per share. 67 68 69 70 Journal Entries Taccounts Income Statement Statement of RE Balance Sheet Feb 1) Dandee's Candies repurchased 20,000 shares of its own previously issued 66 common stock. The shares were repurchased at $20 per share. 67 68 69 70 71 72 Feb 28) Dandee's Candies made its second monthly payment of $2,100 to Greenbow 73 Savings Bank for its 9% mortgage. This payment covers both interest and principal 74 75 76 77 78 79 Mar 1) Dandee's Candies sold 5,000 shares of treasury stock purchased on February 1st 80 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 Supply 87 for $0.15 per share 88 89 90 91 92 Journal Entries Taccounts Income Statement Statement of RE Balance Sheet E B Mar 1) Dandee's Candies sold 100,000 shares of its investment in Piper Paper Supply 87 for $0.15 per share. 88 89 90 91 92 93 Mar 15) Dandee's Candies declared a $.15 per share dividend on common shares and a 94 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 interest on 108 its notes payable with Adirondack Bank. 109 110 111 112 113 114 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) on these bonds Journal Entries T accounts Income Statement Statement of RE Balance Sheet E E A 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) on these bonds 115 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 from 122 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 130 131 132 133 134 135 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. 1144 145 146 147 148 149 150 D H Cash F G quity Investments M MIMO Ball $ Ball $ Buildings Bal) $ Ball S How Monday 5 ( 5 ( Bar $ TA 5 (ta 5 al 26 22 28 20 30 he 3 34 35 16 3 30 Soumal EntsTaccounts Income statement Statement OTRE Balance Sheet S (Bal (Bal $ (Bal Cerred Treasury PICT $ Bal Bal) $ Bal Chwil $ (Ba Bal) $ 15 Bal Ovidend Toon 1 32 53 54 55 50 57 58 50 50 1 S Bal a) Ban 03 69 c D E TI G B Prepare Dandee's Candies' Financial Statements for the first quarter of 1 20XX. The company is taxed at a tax rate of 20% 2 3 Dandee's Candies 4 Income Statement 5 For the Quarter Ended March 31, 20XX 6 7 Net Sales $ 3,800,000 8 Cost of Goods Sold 2,100,000 9 Gross Profit 10 Operating Expenses: 11 Selling Expenses S 600,000 12 Administrative Expenses 805,764 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 23 24 D AN 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 N 12 13 H D Dandee's Candies Balance Sheet March 31, 20xx Assets Liabilities $ 192,200 279,450 Current abilities Accounts Payable Dividends Payable Common Didends Payable Preferred Other Current Liabilities Total Current Cables 12,000 20.114 6 Current Assets 17 Cash 0 Accounts Recewable Equity investments 10 Other Current Assets 11 Total Current Assets 12 13 Noncurrent Assets 1 Buildings 15 en Acc DepBullding 16 timer Ace Dement 18 HIM Debt investment 10 Yots Noncurrentes 20 31 22 21 125001 380.000 11,00 Long term Debt NotePad Bonus Payable Discount on Blonde Payable Marta Payable Totalcone term Dube Total title Sede Couty Commons PC Com weet 100 PC verre 26 27 20 3 21 2 Total Tocal de Catal Le Treasury Mode Detai Yotal Stocht Torben