journal has a total of 47 entries

Instructions Selected transitions completed by Equinox Products Inc. during the fiscal year ended December 31, Year 1, were as follows: Record on oumal page 10: Jan. Feb. May 3 15 1 18 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 Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually Declared a quarterly 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 two separate entries 26 1 Jun B 22 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 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 quarterly cash dividend per share on preferred stock on the date of record, 20,000 shares of preferred stock had been issued. Check My Work 3 more Check My Work USOS Romaining MSU Coons Jul. 11 27 shares of preferred stock na een issued. Paid the cash dividends declared on Jun. 30 to the preferred stockholders. Roosived $27,500 dividend from Pinkberry Co. Investment of Jun. 22. Aug 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 hold-to-maturity long-term Investment 29 31 Dec. 31 31 Sold, at $38 per share, 2.600 shares of treasury common stock purchased on Jun 8. Received a dividend of $0.60 per share from the Solstice Corp. Investment on Jun. 1. 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 share of Pinkberry Co. net income. The fair value for Solstice Corp, stock was $39.02 per share on December 31, Year 1. The investment is adjusted to fair value, using a valuation allowance account. Assume that Valuation Allowance for Available for Sale Investments had a beginning balance of zero. 31 7 14 29 31 Dec. 31 Sold, at $38 por share, 2,600 shares of treasury common stock purchased on Jun. 8. Received a dividend of 50.60 per share from the Solstice Corp. investment on Jun. 1. 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 share of Pinkberry Co.net incork. The fair value for Solstice Corp. stock was $39.02 per share on December 31, Year 1. The investment is adjusted to fair value, using a valuation allowance account. Assume that Valuation Allowance for Available for Sale Investments had a beginning balance of zero. 31 31 Required: 1. Journalize the selected transactions. Refer to the Chart of Accounts for exact wording of account titles. Check My Work 3 more Check My Work uses remaining REVENUE 410 Sales 611 Dividend Revenue 621 Interest Revenue 631 Income of Pinkberry Co. Investment 641 Gain on Sale of investment Chart of Accounts ASSETS 110 Cash 121 Accounts Receivable 122 Alowance for Doubtful Accounts 131 Merchandise inventory 132 Interest Receivable 133 Prepaid Expenses 141 Investments-Solstice Corp. Stock 142 Investment in Pinkberry Co. Stock 143 Investments-Dream Inc. Bonds 144 Valuation Allowance for Avalable for Sale Investments 181 Store Buldings and Equipment 182 Accumulated Depreciation Store Buildings and Equipment 183 Office Buildings and Equipment 184 Accumulated Depreciation Office Buildings and Equipment 191 Goodwil EXPENSES 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 Buildings and Equipment LIABILITIES 211 Accounts Payable 221 Income Tax Pavable LIRDILITICO 03 OU IL CANSU 541 Income Tax Expense 211 Accounts Payable 221 Income Tax Payable 225 Cash Dividends Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 551 Depreciation Expense-Store Buildings and Equipment 552 Depreciation Expense-Office Buildings and Equipment 591 Miscellaneous Selling Expense 592 Miscellaneous Administrative Expense 710 Interest Expense 731 Loss on Sale of Investment 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 Unrealed Gain (Loss) on Available for Sale investments