Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Failed to upload reference please don't upload photos You have been hired as a new Accountant in the Manhattan Trade Corporation and will be in

image text in transcribedimage text in transcribed

Failed to upload reference

please don't upload photos

You have been hired as a new Accountant in the Manhattan Trade Corporation and will be in charge of recording the 2022 daily operations transactions of the company: Feb. 1 Manhattan Trade Corporation opened with the following stockholders: Name Julia Thomas Michael Combs Mary Connors Investment $ 80,000 $ 80,000 $ 80,000 Stock Type Preferred Stock Common Stock 50% Preferred 50% Common Note: Common Stock Par Value Preferred Stock Par Value: $ 1 $ 10 Feb. 1 Paid $60,000 to a real estate company the rent for a one-year period beginning on Feb. 1, 2022. Feb. 2 The company issued a $10,000,000, 8%, 10-year bond that pays semiannual interest on June 30 and December 31, receiving cash of $9,800,000. Feb. 2 Issued 30,000 shares of $ 1 par common stock and sold them at $ 20 per share. Feb. 3 Purchased a delivery truck from Ford Motor Co. $60,000 cash. The useful life is 6 years and its residual value $ 1,000. Feb. 3 Issued 10,000 shares of $ 10 par preferred stock and sold them at $25 per share. Feb. 4 Purchased Office Equipment from Office Depot $10,000 on account. Feb. 5 Bought merchandise on account $90,000 from Samsung, terms: n/30. The company uses the perpetual inventory system. Feb. 6 Credit sales totaled $40,000. The cost of goods sold was $25,000. Feb. 7 Cash Sales totaled $ 15,000. The COGS was $5,000. Feb. 15 Paid $2,000 on Insurance for the store building for the month of February. Feb. 17 Paid $30,000 on account for the merchandise purchased in Feb. 5. Feb. 18 Collected $25,000 from customers on account. Feb. 19 Declared cash dividends of $0.60 per share on preferred stock and $0.10 per share on common stock. Feb. 20 Purchased 3,000 shares of treasury common for $25 per share. Feb. 21 Paid the cash dividends declared on Feb. 19. Feb. 22 Sold 500 shares of treasury common for $30 per share. Feb. 23 Declared a 10% stock dividend on common stock, to be capitalized at the market price of the stock, which is $25 per share. Feb. 24 Sold 300 shares of treasury common for $20 per share. Feb. 28 Issued the certificates for the dividends declared on Feb. 23. Feb. 28 Sold the delivery truck for $ 52,000 in cash. Feb. 28 Calculate and record the monthly depreciation of the equipment, its useful life 5 years and its residual value = 0. Feb. 28 Recorded the amount of prepaid rent that expired for the month. June 30 Make the first interest payment of the bonds issued on Feb. 2. Use the SLM for the discount amortization. Required: a) T-Accounts b) Journal entries ) c) Trial Balance d) Income Statement Balance Sheet e)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions