Indicate the accounts to be debited and credited to record the selected adjusting entries described below by inserting the letter designations in the appropriate columns. ACCOUNTS

A. Accounts Receivable

B. Accumulated Depreciation C. Depreciation D. Equipment E. Income F. Investment F. Investment G. Interest Receivable H. Interest I. Professional

J. Interest Expense K. Interest Revenue Expense L. Supplies M. Supplies ExpenseTax Expense N. Discount on Bond Payablein G Co. Bonds (Asset)

O. Bond Payable P. Wages Expense Payable Q. Wages PayableFees Revenue R. Income Tax Payable

13-14. Adjust for interest expense on the Bonds Payable (O) accrued at the end of the period-a payable

15-16. Adjust for depreciation of equipment for the period

17-18. Adjust for the liability for income taxes ( account R) incurred during the period

19-20. Adjust for supplies used during the period .

21-22. Adjust for the amortization of the related discount on bonds payable (account N) at the end of the period

23-24. Adjust for interest income earned on the bond investment (account F) a receivable at the end of the period.

A. Interest Revenue B. Common Stock C. Retained Earnings D. Interest Expense E. Treasury Stock F. Income Summary G. Salaries Expense H. Salaries Payable I. Bonds Payable J. No Closing Entry Required K. LT Investment in Jones Co. Bonds

DESCRIPTIONS Debit Credit 0. Close the salaries expense account F G

25-26. Close the appropriate interest account an expense on the 6% Bonds Payable (account I)..

27-28. Close the treasury stock account. The treasury stock cost $19,000.

29-30. Close the income summary account (there was a net loss for the year).

31-32. Close the appropriate interest account on the asset account - Long Term Investment in Jones Co. Bonds (account K)

Instructions: In the appropriate columns, insert the letters of the accounts to be debited and credited in recording the selected transactions described below.

A. Bonds Payable-LT Liability B. Cash C. Common Stock J. Loss of Redemption of Bonds D. Discount on Bonds PayableE. Dividend Revenue F. Gain on Redemption of Bonds M. Premium on Common Stock-SH Equity G. Interest Expense TRANSACTIONS Debit Credit 0. Recorded receipt of interest on bond investment H

H. Interest RevenueI. Investment in W Co. Bonds-LT Asset K. Loss on Sale on Investments L. Premium on Bonds Payable-LT Liability .... B .

1-2. Sold $2,000,000 of 8% bonds at 98%-an effective rate of 10% which is a 2% discount

3-4. Paid semiannual interest on bonds issued in Question 1-2. 5-6. Amortized the discount on bonds issued in Question 1-2

7-8. Purchased for cash as an investment $100,000 of W Co. bonds (account I) at 99% plus accrued interest of $500 and brokerage commissions of $150

9-10. Amortized the interest revenue against the Investment in Bonds purchased in Question 7-8

11-12. Sold bonds in Question 7-8 for an amount less than their carrying value. There was $500 accrued interest..

13-14. Issued $1,000,000 of 12% bonds, at an effective rate of 11% which was at a 1% discount.

15-16. Paid semiannual interest and amortized the premium on bonds issued in Question 13-14...

17-18 Redeemed (retired) the bonds payable issued in Question 13-14 for an amount less than their carrying value.

19-20 Received the semi annual cash interest payment on the bond investment in Question 7-8 V. Analysis of Common and Treasury Stock Transactions (10 Points) Instructions: In the appropriate columns, insert the letters of the accounts to be debited and credited in recording the selected transactions described below

. A. Land B. Cash C. Common Stock D. Organization Costs E. Paid-In Capital from Sale of Treasury Stock F. Paid-In Capital in Excess of Par Common Stock G. Paid-In Capital in Excess of Par Preferred Sock H. Preferred Stock I. Retained Earnings J. Stock Dividends K. Sock Dividends Distributable L. Treasury Stock M. Cash Dividends Payable N. Cash Dividends O. Income Summary TRANSACTIONS Debit Credit 0. Issued 1,000 shares of $100 par common stock at $120, receiving cash B C,F 1-2. Issued 150 shares of $50 par common stock with a fair value of $60 per share to an attorney in payment of legal fees for organizing the corporation..

3-4. Declared a small stock dividend of 2,000 shares of $100 par common stock; fair market value is $120 per share.

5-6. Issued the Common Stock for the stocks dividends declared in Question 3-4

7-8. Sold all 500 shares of treasury stock that was originally purchased at $68 for $85, receiving cash.

9-10. Issued 300 shares of $5 par common stock currently trading for $15 per share for land appraised at $4,000..

11-12. Declared a cash dividend of $2.00 per share on the $100 par common stock; the fair market value of the stock is $120 per share

13-14 The company earned $50,000. The Income Summary account was closed out to the Retained Earnings account.