Financial Accounting Project 2-400.pdf Q Q Page 1 of 3 Q Search between Tuu ana 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 in to the dropbox by the due date. The instructor reserves the right 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 2000 shares of $10 par common stock at $11, receiving cash. (6 points) (6 points) B. Issued $ 40000 of 10 year 10% bonds at a market (effective) interest rate of 9%, with interest payable semiannually. Use the Present Value Tables in Appendix 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 6400 shares of common stock were outstanding, (3 points) (2 points) D. Paid cash dividend from (c) above. 1 E. Purchased 2400 shares of Jones Company for $10 per share, plus $1200 commission Our company purchased less than 20% of the outstanding stock of Jones Company (3 points) (6 points) F. Declared a 5% stock dividend on the $10 par common stock when the market price was $ 25 per share. There were 6400 Shares outstanding. w Help a Starch (6 points) Financial Accounting Project 2 - 400.pdf Page 1 of 3 F. Declared a 5% stock dividend on the $10 par common stock when the market price was $ 25 per share. There were 6400 Shares outstanding. G. Distributed the stock dividends declared in (F). (2 points) (3 points) H. Purchased $5000 of 5% bonds at par. Interest is payable semiannually 1. Purchased 120 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 $240 from Jones Company (3 points) (3 points) (3 points) L. Received a $400 dividend from our investment in Masco Company stock. This investment is accounted for under the equity method. (3 points) M. Sold, at $17 per share, 60 shares of treasury common stock purchased in (). (6 points) (6 points) (3 points) (8 points) N. Sold 480 shares of Jones company stock purchased in (E) for $13 per share, including commission o Masco Company's total earnings are $20000. 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 (3 Points) (6 points) 2 09 lo e Search - Financial Accounting Project 2.400.pdf Page 3 of 3 Part 2 Instructions: Page 2 The balances listed below are for December 31 and already include the journal entries you just 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 Forg (Excel File) to complete the Financial Statements Debit Credit Cash 120,000 Accounts receivable 79,000 Allowance for doubtful accounts 4,000 Equity Investments at cost 20,000 Valuation allowance for Equity Investments 2,000 Merchandise inventory at lower of cost (FIFO) or market 8,000 Prepaid expenses 1,200 Interest receivable 800 Investment in Masco Company stock 6,000 Store buildings and equipment 122,000 Accumulated depreciation--store buildings and equipment 60,000 Accounts payable 32,960 Income tax payable 2,000 Bonds payable, 10%, due in 10 years 40,000 Premium on bonds payable 2.000 Retained earnings, January 1, 20X1 91,220 0 Cash dividends, January 1, 20X1 balance 0 Stock Dividends, January 1, 20X1 balance Common stock, $10 par (100,000 shares authorized: 4400 shares 44,000 outstanding), January 1, 20X1 4,400 Paid-in capital in excess of par-common stock, January 1, 20X1 Paid-in capital from sale of treasury stock, January 1, 20X1 0 0 Treasury stock, January 1, 20X1 800 6,000 122,000 60,000 32,960 2,000 40,000 2,000 91,220 0 0 44,000 4,400 0 0 Interest receivable Investment in Masco Company stock Store buildings and equipment Accumulated depreciation---store buildings and equipment Accounts payable Income tax payable Bonds payable, 10%, due in 10 years Premium on bonds payable Retained earnings, January 1, 20X1 Cash dividends. January 1, 20X1 balance Stock Dividends, January 1, 20X1 balance Common stock, $10 par (100,000 shares authorized: 4400 shares outstanding), January 1, 20X1 Paid-in capital in excess of par-common stock, January 1, 20X1 Paid-in capital from sale of treasury stock, January 1, 20X1 Treasury stock, January 1, 20X1 Sales Gain from sale of investment Unrealized gain(loss) on Equity Investments Dividend revenue Interest revenue Income of Masco Company Cost of goods sold Advertising expense Depreciation expense-store buildings and equipment Miscellaneous selling expenses Sales commissions Office rent expense Office salaries expense Miscellaneous administrative expenses Interest expense Income tax expense 280,000 400 3,840 320 1,080 8,000 160,000 $4,000 2,800 2,000 8,000 20,000 24,000 400 2,000 16,000 AL JX D 2 3 ABC Corporation, Inc. Balance Sheet December 31, 20X1 4 (36 points) Assets ir 5 a 6 ne 7 PIB uf 9 CC 10 Rez 11 .ro 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Liabilities 28 29 30 31 32 33 34 35 36 Stockholders' Equity 37 38 Balance Sheet Form + Statement of SHIE Form sett Journal & Income Statement Form A1 G Page 6 1 2 3 fx ABC Corporation, Inc. D ABC Corporation, Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20X1 (12 points) Common Stock Paid-in Capital in Paid-in Capital Excess of Par from sale of Common Stock Treasury Stock Retained Eamings Treasury Stock Total 4 0 0 5 Balances, January 1 6 Issued common stock Net Income # Cash dividends Stock dividends 10 Sale of treasury stock 11 Purchase of treasruy stock 12 Balances December 31 13 14 15 D E B 58 59 Page 5 70 71 72 73 ABC Corporation, Inc. Income Statement For the Year Ended December 31, 20X1 (27 points) 74 75 76 77 78 79 80 81 82 83 84 BS + 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 STATEMENT OF STOCKHOLDERS' EQUITY AND BALANCE SHEET FORMS ON NEXT TABS BELOW Page 3 2 ix B Hon 1 Financial Accounting Name 3 150 points total Dirt 4 pla Journal Entries 2 - 8 points each (75 points) the 6 API 7 Suf 8 Acc 9 Rea 10 pro 11 12 13 14 15 16 17 15 + 19 20 21 22 23 24 25 20 27 28 29 30 31 32 31 14 35 36