Financial Accounting - Project 2 Page 1 Name 1900 150 points For instructor. Even 100's between 100 and 4000) Part 1 Instructions Record the following journal entries for ABC Corporation on the journal in the provided Student Input Form (Excel file). Use the letter for each as the date Requirements and Basic Instructions: 1. Each student should complete the project on an individual basis. Tutors and others are not allowed to help students on the project. If a project is not completed on an independent, individual basis, the student will receive zero points for the project 2. Instructors can only answer questions on the project in general 3. Students should complete the project and turn it into the dropbox by the due date. The instructor reserves the night to not accept late projects or deduct points on projects turned in past the due date. 4. There are different versions of the project that will be assigned (course mailed) by the instructor 5. By submitting in the Canvas dropbox you are "signing that you have followed the instructions above Journal Entries A Issued 9500 shares of $10 par common stock at $11, receiving cash 15 points) 15 points) 3 points) 12 points 3 points) B. Issued $190000 of 10 year 10% bonds at a market (effective) interest rate of 9%. with interest payable semiannually. Use the Present Value Tables in Appendiox A of text book. Round all calculations to the nearest dollar C. Declared a dividend of $0.25 per share on common stock. On date of declaration, 30400 shares of common stock were outstanding D. Paid cash dividend from (c) above E. Purchased 11400 shares of Jones Company for $10 per share, plus $5700 commission Our company purchased less than 2006 of the outstanding stock of Jones Company F. Declared a 5% stock dividend on the 515, of common stock when the market price was $ 25 per shars. There were 30400 Shares outstanding, G. Distributed the stock dividonds declared in (F). H. Purchased $5000 of 5% bonds at par. Interest is payable semiannually 1. Purchased 570 shares of treasury common stock for $12 per share, J. Received semiannual interest from bonds purchased in (H). K. Received a total cash dividend of $1140 from Jones Company, (6 points) 12 points) 13 points) 13 points) (3 points) (3 points) L. Received a $1900 dividend from our investment in Masco Company stock This investment is accounted for under the equity method. (3 points) (6 points) (6 points) (3 points) M. Sold, at $17 per share, 285 shares of treasury common stock purchased in (1). N. Sold 2280 shares of Jones company stock purchased in (E) for $13 per share, including commission o. Masco Company's total earnings are $95000. We own 40%. Record the earnings for our company using the equity method. P. Sold the bonds purchased in (H) at 103 plus $63 in accrued interest Q. At the end of the accounting period, the remaining shares of Jones Company stock increased $2.00 per share R. Record the payment of semiannual interest on the bonds issued in (B) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Round all calculations to the nearest dollar. (8 points) (3 Points) (6 points) Finanart 2 Instructions The balances listed below are for December 31 and already include the journal entries you just Page 2 prepared except for the stockholders' equity accounts. The balances listed for the stockholders' equity accounts are the January 1 balances. You will need to utilize the journal entries you just prepared to complete the Statement of Stockholders' Equity Prepare a multistep income statement, a statement of stockholders equity, and a classified balance sheet in good form for the year ended December 31, 20X1. Use the Student Input Form (Excel File) to complete the Financial Statements Cash Debit Credit Accounts receivable 570,000 379.000 Allowance for doubtful accounts 19,000 Equity Investments at cost 95,000 Valuation allowance for Equity Investments 9.500 Merchandise inventory at lower of cost (FIFO) or market 38.000 Prepaid expenses 5,700 Interest receivable 3,800 Investment in Masco Company stock 28,500 Store buildings and equipment 579,500 Accumulated depreciation-store buildings and equipment 285,000 Accounts payable 167,810 Income tax payable 2,000 Bonds payable, 10%, due in 10 years 190,000 Premium on bonds payable 9,500 Retained earnings, January 1, 20X1 433.295 0 Cash dividends. January 1, 20X1 balance Stock Dividends, January 1, 20X1 balance 0 Common stock, $10 par (100,000 shares authorized: 20900 shares 209,000 outstanding), January 1, 20X1 Paid-in capital in excess of par-common stock, January 1, 20X1 20.900 Paid-in capital from sale of treasury stock, January 1, 20X1 0 0 Treasury stock, January 1, 20X1 Sales 1,330,000 Gain from sale of investment 1,900 Unrealized gain(loss) on Equity Investments 18,240 Dividend revenue 1,520 5.130 Interest revenue 38,000 Income of Masco Company 760,000 Cost of goods sold $19.000 Advertising expense 13,300 Depreciation expense-store buildings and equipment 9,500 Miscellaneous selling expenses Sales commissions 38,000 Office rent expense 95.000 Office salaries expenso 114,000 1,900 Miscellaneous administrative expenses Interest expense 9.500 76,000 Income tax expense Financial Accounting Name 150 points total Page 3 Journal Entries 2 - 8 points each (75 points) Page 5 ABC Corporation, Inc. Income Statement For the Year Ended December 31, 20X1 (27 points) STATEMENT OF STOCKHOLDERS' ECHITANE BALANCE SHEET FORMS ON NEXT TABS BELOW. Page 6 Total Retained Earnings Treasury Stock ABC Corporation, Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20X1 (12 points) Common Stock Paid-in Capital in Paid-in Excess of Par- Capital from Common Stock sale of Treasury Stock Balances, January 1 0 Issued common stock Net income Cash dividends Stock dividends Sale of treasury stock Purchase of treasruy stock Balances December 31 Page 7 ABC Corporation, Inc. Balance Sheet December 31, 20X1 (36 points) Assets Liabilities Stockholders' Equity