DATE TRANSACTIONS FOR 2022 Jan. 5 Issued 1,000 shares of 5 percent $100 par preferred stock for $101 per share. (The corporation has been authorized to issue 10,000 shares of preferred stock.) 15 Paid estinated incone taxes of $17,000 accrued at the end of 2021 . Apr. 1 Paid semiannual bond interest on the 10 -year, 10 percent bonds payable and amortized the preaium for the period since December 31, 2021. (The interest and premium were recorded as of Decenber 31, 2021; the entry was not reversed.) The bonds were issued on October 1,2020 , at a price of 103, and they mature on 0ctober1, 2030 . Use straight-line anortization. Juty 2 The board of directors declared a cash dividend of $0.10 per share on the conmon stock. The dividend is payable on 3uty 26 to stockholders of record as of July 15. 26 Paid the cash dividend on the conmon stock. Aug. 12 A purchaser of 600 shares of preferred stock issued on January 5 asked the corporation to repurchase the shares. The corporation repurchased the stock for $102 per share. The stock is to be held by the corporation until it can be resold to another purchaser. oct. 1 Paid the senfannual bond interest and recorded anortization of the bond premium. Dec. 1 Because of its good cash position and current bond prices, The Purple company repurchased and retired $20,0e0 par value of the 10 percent bonds that it has outstanding. The repurchase price was 98 , plus accrued interest. 15 The company's board of directors declared a cash dividend of $5 per share on the outstanding preferred stock. This dividend is payable on January 10 to stockholders of record as of Decenber 31. 15 The board of directors also declared a 10 percent stock dividend on the outstanding common stock. The new shares are to be distributed on January 10 to stockholders of record as of December 31 . At the tine the dividend was declared, the comnon stock had a fair market value of $15 per share. 30 Received a subscription for 500 shares of The Purple Company's common stock at $12 per share fron the conpany's president. Received cash equal to one-half the purchase price on the date of subscription. The balance of the purchase price is to be paid on January 15, 2023. (The subscriber will not be entitled to the stock dividend previously declared on the outstanding shares of conmon stock.) 30 Because the management of Purple foresees the need to expand a warehouse the firm owns, the board of directors has restricted future dividend payments. Record the appropriation of $100,000 of retained earnings for plant. expansion. SUMMARY OPERATING TRWISACTIONS FOR 2022 31 Total sales of terchandise for the year were $2,800,000. All sales were on credit. 31 Total collections on accounts recelvable during the year were $2,810,000. 31 Total purchases of merchandise for the year were $1,880,000. All purchases were on credit. 31 Total operating expenses incurred during the year were $650,000. (Debit Operating Expenses and credit Accounts Payable,) 31 Total cash payments on accounts payable during the year were $2,335,000. 31 Total accounts receivable charged off as uncollectible during the year were $10,000, (The Purple Company uses the allowance method to record uncollectible accounts.) DATA FOR YEAR-END ADJUSTMENTS 31 The batance of Allowance for Doubtful Accounts shoutd be adjusted to equat 3 percent of the balance of Accounts Receivable. (Debit Operating Expenses.) 31 Depreciation on the buildings should be recorded. (Debit Operating Expenses.) The firm uses the straight-line method and an estimated life of 20 years to compute this adjustment. 31 Depreciation on furniture and equipment should be recorded. The firm uses the straight-tine method and an estimated life of 10 years to compute this adjustent. (Debit Operating Expenses.) 31 Accrued interest on the outstanding bonds payable of The Purple Coepany should be recorded and the preaium anortized. 31 The ending merchandise inventory is $130,080. Journal entry worksheet \begin{tabular}{l|lllll} 2 & 7 & 8 & & & 19 \end{tabular} Issued 1,000 shares of 5 percent $100 par preferred stock for $101 per share. (The corporation has been authorized to issue 10,000 shares of preferred stock.) Note: Enter debits before credits. Journal entry worksheet Record the adjustment of Allowance for Doubtful Accounts so as to equal 3 percent of the balance of Accounts Receivable. Note: Enter debits before credits. Prepare a summary income statement for the year ended December 31,2022 . (The firm does not divide its operating Prepare a statement of retained earnings for the year ended December 31, 2022. Complete this question by entering your answers in the tabs below. Assume that the firm declared and issued a 3:1 stock split of common stock in 2022. What is the effect on total par value? DATE TRANSACTIONS FOR 2022 Jan. 5 Issued 1,000 shares of 5 percent $100 par preferred stock for $101 per share. (The corporation has been authorized to issue 10,000 shares of preferred stock.) 15 Paid estinated incone taxes of $17,000 accrued at the end of 2021 . Apr. 1 Paid semiannual bond interest on the 10 -year, 10 percent bonds payable and amortized the preaium for the period since December 31, 2021. (The interest and premium were recorded as of Decenber 31, 2021; the entry was not reversed.) The bonds were issued on October 1,2020 , at a price of 103, and they mature on 0ctober1, 2030 . Use straight-line anortization. Juty 2 The board of directors declared a cash dividend of $0.10 per share on the conmon stock. The dividend is payable on 3uty 26 to stockholders of record as of July 15. 26 Paid the cash dividend on the conmon stock. Aug. 12 A purchaser of 600 shares of preferred stock issued on January 5 asked the corporation to repurchase the shares. The corporation repurchased the stock for $102 per share. The stock is to be held by the corporation until it can be resold to another purchaser. oct. 1 Paid the senfannual bond interest and recorded anortization of the bond premium. Dec. 1 Because of its good cash position and current bond prices, The Purple company repurchased and retired $20,0e0 par value of the 10 percent bonds that it has outstanding. The repurchase price was 98 , plus accrued interest. 15 The company's board of directors declared a cash dividend of $5 per share on the outstanding preferred stock. This dividend is payable on January 10 to stockholders of record as of Decenber 31. 15 The board of directors also declared a 10 percent stock dividend on the outstanding common stock. The new shares are to be distributed on January 10 to stockholders of record as of December 31 . At the tine the dividend was declared, the comnon stock had a fair market value of $15 per share. 30 Received a subscription for 500 shares of The Purple Company's common stock at $12 per share fron the conpany's president. Received cash equal to one-half the purchase price on the date of subscription. The balance of the purchase price is to be paid on January 15, 2023. (The subscriber will not be entitled to the stock dividend previously declared on the outstanding shares of conmon stock.) 30 Because the management of Purple foresees the need to expand a warehouse the firm owns, the board of directors has restricted future dividend payments. Record the appropriation of $100,000 of retained earnings for plant. expansion. SUMMARY OPERATING TRWISACTIONS FOR 2022 31 Total sales of terchandise for the year were $2,800,000. All sales were on credit. 31 Total collections on accounts recelvable during the year were $2,810,000. 31 Total purchases of merchandise for the year were $1,880,000. All purchases were on credit. 31 Total operating expenses incurred during the year were $650,000. (Debit Operating Expenses and credit Accounts Payable,) 31 Total cash payments on accounts payable during the year were $2,335,000. 31 Total accounts receivable charged off as uncollectible during the year were $10,000, (The Purple Company uses the allowance method to record uncollectible accounts.) DATA FOR YEAR-END ADJUSTMENTS 31 The batance of Allowance for Doubtful Accounts shoutd be adjusted to equat 3 percent of the balance of Accounts Receivable. (Debit Operating Expenses.) 31 Depreciation on the buildings should be recorded. (Debit Operating Expenses.) The firm uses the straight-line method and an estimated life of 20 years to compute this adjustment. 31 Depreciation on furniture and equipment should be recorded. The firm uses the straight-tine method and an estimated life of 10 years to compute this adjustent. (Debit Operating Expenses.) 31 Accrued interest on the outstanding bonds payable of The Purple Coepany should be recorded and the preaium anortized. 31 The ending merchandise inventory is $130,080. Journal entry worksheet \begin{tabular}{l|lllll} 2 & 7 & 8 & & & 19 \end{tabular} Issued 1,000 shares of 5 percent $100 par preferred stock for $101 per share. (The corporation has been authorized to issue 10,000 shares of preferred stock.) Note: Enter debits before credits. Journal entry worksheet Record the adjustment of Allowance for Doubtful Accounts so as to equal 3 percent of the balance of Accounts Receivable. Note: Enter debits before credits. Prepare a summary income statement for the year ended December 31,2022 . (The firm does not divide its operating Prepare a statement of retained earnings for the year ended December 31, 2022. Complete this question by entering your answers in the tabs below. Assume that the firm declared and issued a 3:1 stock split of common stock in 2022. What is the effect on total par value