Journal Chart of Accounts Instructions Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: Record on journal page 10: Issued 15,000 shares of $20 par common stock at $30, receiving cash. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. Jan. 3 Feb. 15 May 1 Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. I 16 26 Declared a dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. Journalize this transaction as a single entry. Paid the cash dividends declared on May 16. Purchased 7,500 shares of Solstice Corp. at $40 per share, plus a $150 brokerage commission. The Jun. 1 Shaded cells have feedback. Instructions Chart of Accounts Journal Journal 20 Chart of Accounts Instructions Jun. 1 8 22 30 Purchased 7,500 shares of Solstice Corp. at $40 per share, plus a $150 brokerage commission. The investment is classified as an available-for-sale investment. Purchased 8,000 shares of treasury common stock at $33 per share. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. Declared a $1.00 cash dividend per share on preferred stock. On the date of record, 10,000 shares of preferred stock were outstanding. Paid the cash dividends declared on Jun. 30 to the preferred stockholders. Jul. 11 Aug. 27 Received $27,500 dividend from Pinkberry Co. investment of Jun. 22. Shaded cells have feedback. Instructions Chart of Accounts Journal Journal 20 Chart of Accounts Instructions. Record on journal page 11: Oct. 1 Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of $375. The bonds are classified as a held-to-maturity long-term investment. 7 Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8. 14 Received a dividend of $0.60 per share from the Solstice Corp. investment on Jun. 1.I 29 Dec. 31 31 31 Sold 1,000 shares of Solstice Corp. at $45, including commission. Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for six months. The amortization is determined using the straight-line method. Accrued interest for three months on the Dream Inc. bonds purchased on Oct. 1. Pinkberry Co. recorded total earnings of $240,000. Equinox Products recorded equity earnings for its Shaded cells have feedback. X Comprehensive Problem Instructions Chart of Accounts Journal Journal Chart of Accounts Instructions 31 Dec. 31 31 31 Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for six months. The amortization is determined using the straight-line method. Accrued interest for three months on the Dream Inc. bonds purchased on Oct. 1. Pinkberry Co. recorded total earnings of $240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. The fair value for Solstice Corp. stock was $39.02 per share on December 31, 2016. The investment is adjusted to fair value, using a valuation allowance account. Assume Valuation Allowance for Available- for-Sale Investments had a beginning balance of zero. Required: 1. Journalize the selected transactions. Refer to the Chart of Accounts for exact wording of account titles. Shaded cells have feedback. al Chart of Accounts CHART OF ACCOUNTS Equinox Products Inc. General Ledger ASSETS 110 Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 131 Merchandise Inventory 132 Interest Receivable 133 Prepaid Expenses 141 Investments-Solstice Corp. REVENUE 410 Sales 611 Dividend Revenue 621 Interest Revenue 631 Income of Pinkberry Co. 641 Gain on Sale of Investments EXPENSES 511 Cost of Marchandise Sold nal Chart of Accounts 142 Investment in Pinkberry Co. 143 Investments-Dream Inc. Bonds 144 Valuation Allowance for Available-for-Sale Investments. 181 Store Buildings and Equipment 182 Accumulated Depreciation-Store Buildings and Equipment 183 Office Buildings and Equipment 184 Accumulated Depreciation-Office Buildings and Equipment 191 Goodwill LIABILITIES 211 Accounts Payable 221 Income Tax Payable 225 Cash Dividends Payable 251 Bonds Payable 511 Cost of Merchandise Sold 512 Bad Debt Expense 520 Sales Salaries Expense 521 Sales Commissions 522 Office Salaries Expense 531 Advertising Expense 532 Delivery Expense 537 Store Supplies Expense 538 Office Supplies Expense 539 Office Rent Expense 541 Income Tax Expense 551 Depreciation Expense-Store Equipment 552 Depreciation Expense-Office Equipment 591 Miscellaneous Selling Expense. rt of Accounts 253 Premium on Bonds Payable EQUITY 311 Preferred Stock 312 Paid-in Capital in Excess of Par-Preferred Stock 321 Common Stock 322 Paid-in Capital in Excess of Par-Common Stock 331 Retained Earnings 341 Cash Dividends 351 Treasury Stock 352 Paid-in Capital from Sale of Treasury Stock 361 Unrealized Gain (Loss) on Available-for-Sale Investments Work 1 more Check My Work uses remaining. : 46.87% 710 Interest Expense 731 Loss on Sale of Investments All work saved. Shaded cells have feedback. X 2615 MAY O W 8 tv & A 1. Journalize the selected transactions. Refer to the Chart of Accounts for exact wording of account titles. Scroll down for journal page 11. How does grading work? 1 PAGE 10 JOURNAL Score: 283/312 DATE DESCRIPTION POST. REF. DEBIT CREDIT Jan. 3 Cash 450,000.00 Common Stock Paid-in Capital in Excess of Par-Common Stock Feb. 15 Cash 300,000.00 150,000.00' 400,000.00' Preferred Stock 320,000.00 Paid-in Capital in Excess of Par-Preferred Stock 80,000.00" May 1 Cash 520.000.00 Paid-in Capital in Excess of Par-Preferred Stock 7 May 1 Cash A 520,000.00 Bonds Payable 500,000.00 9 Premium on Bonds Payable 20,000.00 10 May 16 Cash 70,000.00 70,000.00 11 Cash Dividends 12 Cash Dividends Payable 70,000.00 13 May 26 Cash Dividends Payable 70,000.00 14 14 Cash 70,000.00 15 Jun. 1 Gain on Sale of Investments 300,150.00 16 16 Cash 300,150.00 17 Jun.8 Treasury Stock 264,000.00 Cash 264,000.00 19 Jun. 22 Investment in Pinkberry Co. 960,000.00 Joumal 18 Cash 264,000.00 15 19 Jun. 22 Investment in Pinkberry Co. 960,000.00" 20 Cash 960,000.00 21 Jun. 30 Cash Dividends 20,000.00 22 13 22 Cash Dividends Payable 20,000.00 23 Jul 11 Cash 20,000.00 24 Aug. 27' Investment in Pinkberry Co. 27,500.00 1 Cash 27,500.00 Journal 10 10 JOURNAL Score: 243/249 Shaded cells have DATE DESCRIPTION POST. REF DEBIT CREDIT Oct. 1 Bonds Payable Interest Receivable 90,000.00 375.00 Cash 90,375.00 Oct. 7 Cash 98,800.00 Treasury Stock 85,800.00 Paid-in Capital from Sale of Treasury Stock 13,000.00 Oct. 14 Cash 4,500.00' Dividend Revenue 4,500.00 Oct. 29 Cash. 45,000.00 Investments-Solstice Corp. 40,020.00 Interest Fynence. Gain on Sale of Investments Oct 31 4,980.00 11.500.00 11 Journal 10 Investments-Solstice Corp. 11 Gain on Sale of Investments. 12 Oct. 31 Interest Expense 13 Premium on Bonds Payable 14 Cash = 15 Dec. 31 Interest Receivable 16 16 Interest Revenue 1 17 Dec. 31 Investment in Pinkberry Co. = 18 Income of Pinkberry Co. 19 20 Dec. 31 Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments Shaded cells have feet 40,020.00 4,980.00 11,500.00 1,000.00" 12,500.00' 1,125.00 1,125.00 76,800.00 76,800.00 6,500.00 6,500.00