PETS IN A JAR, Project 3 Pets in a JAR had two very successful years in 2021 and 2022. As a result, the company decided to once again expand its operations. This entailed making an acquisition of a discount pet food manufacturer, authorizing and beginning issuing $3 million in bonds, taking on additional investors in the form of preferred shareholders, and preparing financial information to help persuade potential investors. For each of the transactions listed below, prepare the necessary journal entries for the dates indicated on the appropriate section of the journal or answer tab. 1) On Jan 1, 2023 JAR's board of directors authorized a $3 million bond issue. The 3,000, 4%, $1,000, convertible, semiannual, 10 year bonds pay interest every July 1 and January 1.The bonds will be issued to investors as JAR's management sees fit to facilitate increased cash flow as JAR's liquid cash may diminish substantially following the anticipated acquisition of Beamer below. Each bond is convertible into 5 shares of $10 par common stock. JAR issues $400,000 of the bonds on March 1, 2023 plus accrued interest at 103. Prepare the entries: On 2/15/23 all book values approximated fair values except for the equipment which had a fair value of $1.4 million and the Lease Payable which had a fair value of $57,000. 1. Prepare the JE to record JAR's acquisition of Beamer. 3) On December 31, JAR evaluates the financial position of its Beamer division and determines the fair value of the division is $2,300,000. On Dec 31, the Beamer's total net assets including any goodwill recognized on 2/15/23 are $2,642,000. 1) Prepare the JE to adjust goodwill if necessary. 4) On Dec 31, JAR realized one of its stores had recorded sales and tax for a lump sum of $37,222.50.The entire amount was recorded to sales but part of the $37,222.50 represented 5% sales tax. Determine the amount of tax associated with the $37,222.50 and reclassify it to the appropriate account. 1 For bond issuance on 3/1/23 2 For interest payment on 7/1/23 4 For interest accrual 12/31/23. JAR uses straight-line amortization of all discounts and premiums. 2 On February 15, 2023, JAR acquired Beamer's Bodacious Boys for $3,000,000 cash. On Feb 15, Beamer has the following financial information: Assets: Liabilities: Cash 512,890 A/P A/R 129,630 Salaries Payable 264,350 53,980 Inventory 272,160 Lease Payable 52,089 Equipment 1,486,000 Total Liabilities 370,419 Accum Deprec Equip (412,000) R/E 673,261 Investment in Apple Stock 55,000 Common Stock 1,000,000 Total Liabilities & S/E Equity 2,043,680 2,043,680 5) On Jan 1, 2023, JAR issued 10,000 shares of $100, 3% par cumulative, convertible preferred stock to investors for $120 per share. Each share is convertible into 10 shares of common stock. 1. Record the journal entry for the stock issuance on 1/1/23. 2. Record for the dividend JAR declared on 12/31/23 related to the preferred stock. 6) JAR has a patent for a food production machine that has a book value of the 1/1/23 balance sheet of $85,500. During 2023, JAR determines an local food production company has infringed on the patent. JAR takes the company to court and wins the suit for patent infringement. JAR's legal fees for the case were $4,500. JAR has not yet recorded 2023's amortization. JAR expects the patent to last an additional 8 years, including 2023. 1. Record an entry to appropriately record the legal fees which were paid with cash. 2. Record an entry for the 12/31/23 revised patent amortization.