Entries for selected corporate transactions Instructions. Selected transactions completed by Primo Discount Corporation during the cucrent fiscal year are as follows: Jan. 9 Splat the common slock 3 for 1 and redoced the par from $75 to $25 per shave. Afer the split, there were 1,200,000 common shares outstanding. Feb. 26 Purchased 40,000 shares of the corporation's own common stock at $26, recording the stock at cost. May 1 Declared semiannual dividends of $0.60 per share on 75.000 shares of preferted atock and $0.12 per share on the common stock to stockbolders of record on June 1, puyable on July 10. Jul. 10 Paid the cash dividends. Sep. 7 Sold 30,000 shares of treasury stock of $34, teceiving cash. Oct 1 Declared semiarnual dividends of $0.80 per share on the prelered stock and $0.12 per shave on the common stock (betore the stock dividend), In addition, a 2% common slock dividend was declared on the common stock outstanding. The fair market value of be conmon stock is estimated at $36. Dec. 1. Paid the cash dividends and issued the cersficales for the common stock dividend. CHART OF ACCOUNTS Primo Discount Corperation General Ledger ASSETS 110 Cash 120 Acoounts Recelvable 131 Notes Receivable 132 Interest Receivable 141 inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Apcumulated Depreciation-Equipment LuButies 210 Accounts Payabb 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Coods Sold 515 Creda Card Expenise 520 Salaries Expense 531 Advertising Expense 532 Delvery Expense s33 Seling Expenses 534 Rent Expense 535 insurance Expense 536 Ofice Supples Expente 537 Organirational Expenses 562 Depreciation Expense-Equpment S90 Miscelarnewis Expense Instructions Chart of Accounts Se 194 Accumulated Depreciation-Equipment 533 Selling Expenses 534 Rent Expense LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 236 Stock Dividends Distributable 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Eamings 351 Cash Dividends 352 Stock Dividends 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 Interest Expense Joumalize the transactions. If no entry is fequired, simply skip to the next transaction, Aefer lo the Chart of Accounts for exact wording of account teles
