Instructions Chart of Accounts Journal Final Question Instructions Soto Industries Inc. is an athletic footware company that began operations on January 1, 20Y3. The following are bond (held-to-maturity) transactions by Soto Industries Inc., which has a fiscal year ending on December 31: Record these transactions on page 10 20Y3 Apr. 1 Purchased $81,600 of Welch Co. 4%, 15-year bonds at their face amount plus accrued interest of $544. The bonds pay interest semiannually on March 1 and September 1. June 1 Purchased $60,000 of Bailey 8%, 10-year bonds at their face amount plus accrued interest of $200 The bonds pay interest semiannually on May 1 and November 13 Sept. 1 Received semiannual interest on the Welch Co. bonds 30 Sold $25,200 of Welch Co. bonds at 96 plus accrued interest of $84 Nov 1 Received semiannual interest on the Bailey bonds Dec 31 Accrued interest on the Welch Co bonds 31 Accrued interest on the Bailey bonds, Instructions Chart of Accounts Journal Final Question Instructions 31 Accrued interest on the Bailey bonds. Record these transactions on page 11 2014 Mar 1 Received semiannual interest on the Welch Co. bonds May 1 Received semiannual interest on the Bailey bonds Required: 1. Journalize the entries to record these transactions. Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. Assume 360 days a year Do not round your intermediate calculations and round final answers to the nearest dollar. 2. If the bond portfolio is classified as an available-for-sale investment, how would it be reported on the financial statements? Instructions Chart of Accounts Journal Final Question Chart of Accounts CHART OF ACCOUNTS Soto Industries Inc. General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts) 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance REVENUE 410 Sales 611 Interest Revenue 612 Dividend Revenue 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 515 Credit Card Expense 161 Invactmante.Malch Co. Ronde 516 Cash Short and Over Chart of Accounts 146 Store Supplies 151 Prepaid Insurance 161 Investments-Welch Co. Bonds 162 Investments-Bailey Bonds 512 Bad Debt Expense 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 165 Valuation Allowance for Trading Investments 166 Valuation Allowance for Available-for-Sale Investments 532 Delivery Expense 181 Land 533 Repairs Expense 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries Payable 534 Selling Expenses 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 538 Store Supplies Expense 561 Depreciation Expense-Store Equipment 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 731 Loss on Sale of Investments Chart of Accounts 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries Payable 251 Sales Tax Payable 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 731 Loss on Sale of Investments 741 Unrealized Loss on Trading Investments EQUITY 311 Common Stock: 312 Paid-In Capital in Excess of Par-Common Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Treasury Stock 332 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Unrealized Gain (Loss) on Available-for-Sale Investments 351 Cash Dividends 352 Stock Dividends Instructions Chart of Accounts Journal Final Question Journal fa. Journalize the entries to record 2013 transactions. Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entes CNOW journals will automatically indent a credit entry when a creat amount is entered. Assume 360 days a year. Do not round your intermediate calculations and round final answers to the nearest dollar 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST SAYS LATES EQUITY Transactions for Bond (Held-to-Maturity) Investments Instructions Journal 9 10 11 12 14 15 Chart of Accounts Journal Final Question 16 Adjusting Entries 18 15 20 21 Instructions Chart of Accounts Journal Final Question Journal 1b. Journalize the entries to record 2014 transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Assume 360 days a year Do not round your intermediate calculations and round final answers to the nearest dollar. JOURNAL DATE DESCRIPTION PAGE 11 ACCOUNTING EQUATION FOST RE DEBIT CREDIT ASSETS LIABILITIES EQUITY