mpreensive Problem for apters 13 - 15 pache Motors' Corporate Transactions Apache Motors of $1 par-value common stock and 200,000 shares of no-par preferred stock. During the first tirst quarter of operations, Apache completed the following selected transactions: ' corporate charter authorizes the company to issue 1 million shares Oct. 1 Issued 50,000 shares of $1-par common stock for cash of $6 per share (Pp. 646-647) Issued $200,000 of 9%, 10-year bonds payable at 90, (pp. 738-739) Issued 2,000 shares of no-par preferred stock, receiving cash of $100,000. (pp. 648-649) 1 5 Nov. 2 Purchased 11,000 shares of Apache common stock for the treasury at $5 per share. (pp. 694-695) 19 Experienced a $16,000 extraordinary flood loss of inventory that cost $20,000. Cash received from the insurance company was $4,000. There is no income tax effect from this loss. (pp. 704-705) Dec. 1 Sold 1,000 shares of the treasury stock for cash of $6.25 per share. (p. 696) Sold merchandise on account, $700,000. Cost of goods sold was $400,000 Operating expenses totaled $170,000, with $160,000 of this amount paid in cash. Apache uses a perpetual inventory system. (pp. 261-262, 72-73) Accrued interest and amortized discount (straight-line method) on the bonds payable issued on October 1. (pp. 744-745) Accrued income tax expense of $35,000. (pp. 661-662) Closed all revenues, expenses, and losses to Income Summary in a single closing entry. (pp. 641-644) Declared a quarterly cash dividend of $1.00 per share on the preferred stock. Record date is January 11, with payment scheduled for January 19. (pp. 653-655) 30 31 31 31 31 Requirements Record these transactions in the general journal. Explanations are not required. 2. Prepare a multistep income statement, including earnings per share, for the 31. Apache had 40,000 shares of common stock out- quarter ended December standing. (pp. 703-706)