Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE READ: INSTRUCTIONS Fill in the blanks with the correct Account Names and Debit/Credit Amounts for the following Journal Entries: For Account Names , use

PLEASE READ: INSTRUCTIONS

  1. Fill in the blanks with the correct Account Names and Debit/Credit Amounts for the following Journal Entries:
    1. For Account Names, use the Chart of Accounts to choose the appropriate Account Name. Accounts must be spelled exactly how they appear in the Chart to get credit.
    2. For Debit/Credit Amounts, use the following numeric format: 12345 (no dollar signs, no commas).
    3. If no journal entry is required, write NO for all Debit/Credit Accounts and Debit/Credit Amounts.
  2. If there are multiple Debit or Credit lines in the same journal entry, the order for the Credit Accounts does not matter (I have adjusted the solutions to allow either order)

Chart of Accounts

Assets Stockholders' Equity
Cash Common Stock
Accounts Receivable Additional Paid-in Capital
Inventory Treasury Stock
Supplies Dividends
Prepaid Rent
Equipment Sales
Accumulated Depreciation Cost of Goods Sold
Liabilities Depreciation Expense
Accounts Payable Interest Expense
Dividends Payable Rent Expense
Notes Payable Supplies Expense
Wages Payable Wages Expense
Unearned Revenue Utilities Expense

1. On June 1, Company ABC issues 60,000 shares of common stock to investors for $48 each. The common stock has a par value of $0.50.

Debit Account Credit Account Debit Amount Credit Amount

2. On May 2, Company ABC declared dividends of $41,650 to be paid to shareholders.

Debit Account Credit Account Debit Amount Credit Amount

3. On May 5, Company ABC repurchased 1,400 shares of its own stock back from the market for $39 each.

Debit Account Credit Account Debit Amount Credit Amount

4. On May 10, Company ABC had their "date of record," to record which shareholders would receive the dividends.

Debit Account Credit Account Debit Amount Credit Amount

5. On May 13, Company ABC paid the $41,650 dividends they had declared on May 2 in cash.

Debit Account Credit Account Debit Amount Credit Amount

6. On August 25, Company ABC re-issued 550 of the shares it had repurchased on May 5 (it had purchased them for $39 each). It sold it for $55 per share. Note: re-issued means ABC sold the stock back to the market.

Debit Account Credit Account Debit Amount Credit Amount

7. On August 30, Company ABC re-issued another 150 shares of stock it had repurchased on May 5 (it had purchased them for $39 each). It sold it for $29 per share. Note: re-issued means ABC sold the stock back to the market.

Debit Account Credit Account Debit Amount Credit Amount

Flag question: Question 11

Question 116 pts

Use the journal entries from the previous question (Question 10). Fill in the Shareholders Equity section for the end of the year. Note that all the accounts start at $0. The company had Net Income of $874,500 for the year.

Use the following number format 12345 or -12345 (no commas, no dollar signs, no cents)

in $ amount Dec 31, 2020
Stockholders' Equity:
Common Stock, $0.50 par value
Additional Paid-in Capital
Treasury Stock
Retained Earnings

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Auditing

Authors: Michael C. Knapp

8th edition

978-0538466790, 538466790, 978-1285066608

More Books

Students also viewed these Accounting questions

Question

Define Management or What is Management?

Answered: 1 week ago

Question

What do you understand by MBO?

Answered: 1 week ago