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Please type up or write neatly not in cursive. Record on journal page 11: Oct. 1 Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directly
Please type up or write neatly not in cursive.
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 held-to-maturity long-term investment. |
7 | Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8. | |
14 | Received a dividend of $0.60 per share from the Solstice Corp. investment on Jun. 1. | |
29 | Sold 1,000 shares of Solstice Corp. at $45, including commission. | |
31 | 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. | |
Dec. | 31 | Accrued interest for three months on the Dream Inc. bonds purchased on Oct. 1. |
31 | Pinkberry Co. recorded total earnings of $240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. | |
31 | 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. |
Required: | |
1. | Journalize the selected transactions. Refer to the Chart of Accounts for exact wording of account titles. |
Chart of Accounts
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equinox Products Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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1. Journalize the selected transactions. Refer to the Chart of Accounts for the exact wording of account titles.
PAGE 11
JOURNAL
ACCOUNTING EQUATION
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