Answered step by step
Verified Expert Solution
Question
1 Approved Answer
journal entries ? 1. ABC COMPANY PURCHASED $500,000 BONDS IN XYZ COMPANY 2. ABC COMPANY PURCHASED $500,000 STOCK IN XYZ COMPANY 3. ABC COMPANY PURCHASED
journal entries ?
1. ABC COMPANY PURCHASED $500,000 BONDS IN XYZ COMPANY 2. ABC COMPANY PURCHASED $500,000 STOCK IN XYZ COMPANY 3. ABC COMPANY PURCHASED 5,000 SHARES OF ITS OWN COMMON STOCK FOR ITS TREASURY. THE PAR VALUE IS $3/SH AND THE SELLING PRICE IS $100/SH 4. BASED ON 3. ABOVE, ABC COMPANY SOLD 1,000 SHARES OF ITS TREASURY STOCK FOR $102/SH 5. ABC COMPANY ISSUED 10,000 SHARES OF ITS COMMON STOCK FOR CASH. PV IS $3/SH AND THE SELLING PRICE IS $99/SH 6. ABC COMPANY ISSUED 10,000 SHARES OF ITS COMMON STOCK IN ITS PURCHASE OF LAND. LAND'S ASKING PRICE IS $500,000. LAND'S SELLING PRICE IS $450,000 PV OF STOCK IS $3/SH SELLING PRICE OF STOCK IS $46/SH 7. ABC COMPANY PAID ITS ATTORNEY $20,000 TO INCORPORATE BUSINESS 8. ABC COMPANY ISSUED $400,000 BONDS FOR 97 9. ABC COMPANY ISSUED $400,000 BONDS FOR 102 10. ABC COMPANY DECLAREDA 2 FOR 1 STOCK SPLIT WHEN PV WAS $3/SH AND THE NUMBER OF SHARES OUTSTANDING WAS 100,000 11. ABC COMPANY DECLARED A 5% STOCK DIVIDEND. PV IS $1.50/SH AND THERE ARE 200,000 SHARES OF COMMON STOCK OUTSTANDING AND THE SELLING PRICE IS $46/SH 1,02 12. DATE OF RECORD FOR 11. ABOVE 13. ISSUED STOCK DIVIDENDS FROM 11. ABOVE 14. DECLAREDA $2 CASH DIVIDEND. THERE ARE 210,000 SHARES OF COMMON STOCK OUTSTANDING. THE COMMON STOCK HAS A $1.50 PAR VALUE PER SHARE AND THE STOCK'S SELLING PRICE IS $46/SH 15. DATE OF RECORD FOR 14. ABOVE 16. PAID 14. ABOVE 17. ON 7/1, RECEIVED INTEREST FROM INVESTMENT YOU PURCHASED. THE ORIGINAL INVESTMENT WAS FOR $300,000, PAYING 10% INTEREST SEMI ANNUALLY ON 7/1 AND 1/1. PREPARE THE JOURNAL ENTRY FOR 7/1 18. BASED ON 17 ABOVE, PREPARE THE JOURNAL ENTRY ON 12/31 19. BASED ON 17 ABOVE, PREPARE THE JOURNAL ENTRY ON 1/1 20. CLOSED OUT $400,000 NET INCOME 21. REALIZED UNDERSTATED DEPRECIATION EXPENSE LAST YEAR BY $2,000
Step by Step Solution
★★★★★
3.46 Rating (156 Votes )
There are 3 Steps involved in it
Step: 1
Ref Dr Cr Account Title Debit Credit Explanation 1 Dr Investment in Bonds 500000 Cr Cash 500000 To r...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started