Journal Entries

A$.$ Issued $2500$ shares of $$10$ par common stock at $$11,$ receiving cash. $(6$ points$)$

B$.$ Issued $ $50000$ of $10$ year $10\%$ bonds at a market $($effective$)$ interest rate of $9\%,$

with interest payable semiannually. $(6$ points$)$

Use the Present Value Tables in Appendix A of text book. Round all

calculations to the nearest dollar.

C$.$ Declared a dividend of $$0\mathrm{.}25$ per share on common stock. On date of declaration,

$8000$ shares of common stock were outstanding. $(3$ points$)$

D$.$ Paid cash dividend from $($c$)$ above. $(2$ points$)$

E$.$ Purchased $3000$ shares of Jones Company for $$10$ per share, plus $$1500$ commission.

Our company purchased less than $20\%$ of the outstanding stock of Jones Company. $(3$ points$)$

F$.$ Declared a $5\%$ stock dividend on the $$10$ par common stock when the $(6$ points$)$

market price was $ $25$ per share. There were $8000$ Shares outstanding.

G$.$ Distributed the stock dividends declared in $($F$).(2$ points$)$

H$.$ Purchased $$5000$ of $5\%$ bonds at par. $(3$ points$)$

Interest is payable semiannually.

I. Purchased $150$ shares of treasury common stock for $$12$ per share. $(3$ points$)$

J$.$ Received semiannual interest from bonds purchased in $($H$).(3$ points$)$

K$.$ Received a total cash dividend of $$300$ from Jones Company. $(3$ points$)$

L$.$ Received a $$500$ dividend from our investment in Masco Company stock.

This investment is accounted for under the equity method. $(3$ points$)$

Record the following journal entries for ABC Corporation on the journal in the provided Student

Requirements and Basic Instructions:

$1.$ Each student should complete the project on an individual basis. Tutors and others are not allowed to help

students on the project. If a project is not completed on an independent, individual basis, the student will receive

zero points for the project.

$2.$ Instructors can only answer questions on the project in general.

$3.$ Students should complete the project and turn it in to the dropbox by the due date. The instructor reserves the

right to not accept late projects or deduct points on projects turned in past the due date.

$4.$ There are different versions of the project that will be assigned $($course mailed$)$ by the instructor.

$5.$ By submitting in the Canvas dropbox you are "signing" that you have followed the instructions above.

M$.$ Sold, at $$17$ per share, $75$ shares of treasury common stock purchased in $($I$).(6$ points$)$

N$.$ Sold $600$ shares of Jones company stock purchased in $($E$)$ for $$13$

per share, including commission. $(6$ points$)$

O$.$ Masco Company's total earnings are $$25000.$ We own $40\%.$ Record the earnings

for our company using the equity method. $(3$ points$)$

P$.$ Sold the bonds purchased in $($H$)$ at $103$ plus $$63$ in accrued interest. $(8$ points$)$

Q$.$ At the end of the accounting period, the remaining shares of Jones Company stock

increased $$2\mathrm{.}00$ per share $(3$ Points$)$

R$.$ Record the payment of semiannual interest on the bonds issued in $($B$)$

and the amortization of the premium for six months.

The amortization is determined using the straight$-$line method. $(6$ points$)$

Round all calculations to the nearest dollar.

Part $2$ Instructions: Page $2$

Debit Credit

Cash $150,000$

Accounts receivable $99,000$

Allowance for doubtful accounts $5,000$

Equity Investments at cost $25,000$

Valuation allowance for Equity Investments $2,500$

Merchandise inventory at lower of cost $($FIFO$)$ or market $10,000$

Prepaid expenses $1,500$

Interest receivable $1,000$

Investment in Masco Company stock $7,500$

Store buildings and equipment $152,500$

Accumulated depreciation$$store buildings and equipment $75,000$

Accounts payable $41,950$

Income tax payable $2,000$

Bonds payable, $10\%,$ due in $10$ years $50,000$

Premium on bonds payable $2,500$

Retained earnings, January $1,20$X$1114,025$

Cash dividends $,$ January $1,20$X$1$ balance $0$

Stock Dividends, January $1,20$X$1$ balance $0$

Common stock, $$10$ par $(100,000$ shares authorized; $5500$ shares

outstanding$),$ January $1,20$X$1$

$55,000$

Paid$-$in capital in excess of par$$common stock, January $1,20$X$15,500$

Paid$-$in capital from sale of treasury stock, January $1,20$X$10$

Treasury stock, January $1,20$X$10$

Sales $350,000$

Gain from sale of investment $500$

Unrealized gain$($loss$)$ on Equity Investments $4,800$

Dividend revenue $400$

Interest revenue $1,350$

Income of Masco Company $10,000$

Cost of goods sold $200,000$

Advertising expense $$5,000$

Depreciation expense$$store buildings and equipment $3,500$

Miscellaneous selling expenses $2,500$

Sales commissions $10,000$

Office rent expense $25,000$

Office salaries expense $30,000$

Miscellaneous administrative expenses $500$

Interest expense $2,500$

Income tax expense $20,000$

Use the Student Input Form $($Excel File$)$ to complete the Financial Statements

Prepare a multistep income statement, a statement of stockholders' equity, and a classified balance

sheet in good form for the year ended December $31,20$X$1.$

The balances listed below are for December $31$ and already include the journal entries you just

prepared except for the stockholders' equity accounts. The balances listed for the stockholders' equity

accounts are the January $1$ bal