Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

instructions Carmen Company is a corporation that has inoue both pretermed and common stock As of January t. t had 50.000 share 12.70 3100W, pratened

image text in transcribed
image text in transcribed
image text in transcribed
instructions Carmen Company is a corporation that has inoue both pretermed and common stock As of January t. t had 50.000 share 12.70 3100W, pratened stock outwarding and 250.000 shares of 10 per curation ockoutstanding Required: Jurut the blowing transaction (a) Only 31, the board of directors are to purchase 8.000 are of its common stock ar market price. The shares are purchased at a market price of $22 per share b) on March 16 Carmen de a dividend on preferred to $275 per The date of payment is March 31. ta) on December 1, Carmen declares a cash dividend on common stock of $0.12 pers. The date of payment in December 21. id) On December 27, me board order 2.500 shares of the treasury shock purchased in De sold. The price is par sare Refer to the Chart of Account for exact wording of accounts CHART OF ACCOUNTS Carmen Company General Ledger REVENUE 410 Sales 610 Interest Revenue ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Supplies 151 Prepaid Insurance 181 Land 191 Building 192 Accumulated Depreciation-Building 193 Equipment 194 Accumulated Depreciation-Equipment EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Rent Expense 534 Insurance Expense 535 Supplies Expense 536 Organizational Expenses 561 Depreciation Expense- Building 562 Depreciation Expense- Equipment 590 Miscellaneous Expense 710 Interest Expense LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Preferred Stock 312 Pald-In Capital In Excess of Par-Preferred Stock 321 Common Stock 323 Paid-In Capital in Excess of Par-Common Stock 331 Treasury Stock 333 Pald-in Capital-Treasury Stock 336 Stock Dividends Distributable 340 Retained Earnings 351 Cash Dividends 353 Stock Dividends 390 Income Summary On January 31, the board of directors issues a requirement to purchase 5,000 shares of its common stock at market price. The shares are purchased at a market price of $22 per share. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 On March 15, Carmen declares a dividend on preferred stock of $2.75 per share. The date of payment is March 31. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL DATE DESCRIPTION POST: REF DEBIT CREDIT 1 2 3 4 On December 1, Carmen declares a cash dividend on common stock of SO. 12 per share. The date of payment is December 21. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL POST. REF DEBIT CREDIT DATE DESCRIPTION 1 2 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Software Quality Assurance A Guide For Developers And Auditors

Authors: Howard T. Garst Smith

1st Edition

1574910493, 978-1574910490

More Books

Students also viewed these Accounting questions