Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare journal entries for the following transactions (5 pts per journal entry) Opening Data: C! S $2.00 par, 0 shares outstanding PIS $100 par, 4%,

image text in transcribed
Prepare journal entries for the following transactions (5 pts per journal entry) Opening Data: C! S $2.00 par, 0 shares outstanding PIS $100 par, 4%, cumulative. 0 shares outstanding Jan. 1, 1998 Issued a $3,000,000 bond @ 9?.0, a lO-year boud, paying 3% interest; the market interest rate today is 5%. Interest is be paid twice per year on June 30 & Dec. 31 every year. Jan. 2. Issued 60,000 shares of Common Stock to purchase land worth $375,000 Jan. 3. Issued 2,000 shares of Preferred Stock for a building worth $202,500. Jan. 4. Incurred $33,000 of Salary Expense instead of paying employees cash we issued 300 shares of Preferred Stock to our employees. Jan. 5. Sold 70,000 shares of Common Stock for $? per share. Feb. 6. Purchased 2,000 shares of our own Common Stockow called Treasury Stock for $5i'share. Mar. 7. Declared a $0.09 per share Common Stock cash dividend to shareholders of record on March 15 to be paid March 29. Mar. 8. Declared an annual cash dividend on the Preferred Stock to shareholders of record on March 15 to be paid on March 30. Mar. 9. Declared a small a 3% Common Stock Dividend, market value of each share is $13 per share to shareholders of record March 15 to be issued March 31. Mar. 15 Date of Records. Mar. 29 Paid the Common Stock cash dividend declared on March 7. Mar. 30 Paid the Preferred Stock cash dividend declared on March 8. Mar. 31 Issued the Common Stock Dividend declared on March 9. June 30, 1998 Prepare the necessary journal entry related to the bond interest. July 15 Sold 800 shares of the Treasury Stock purchased above on J an.6 for $12 per Aug. 16 DeclaerdalaeCommon Stock 4 for 1 stock split, answer is NOT a JIE what 2 items changed and by how much?? Sept. 1'? Sold 10,000 shares of CIS for $4 per share. Dec. 31, 1998 Prepare the necessary journal entry related to the bond interest. Jan. 1, 1999 Retire the bond @ 99.0. Assume below instead of the above Jan. 1, 1999 journal entry: Jan. 1,1999 Retire the bond @103

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_2

Step: 3

blur-text-image_3

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

Financial And Managerial Accounting

Authors: Carl S. Warren, Jefferson P. Jones, William Tayler

16th Edition

0357714040, 9780357714041

More Books

Students also viewed these Accounting questions

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago