Question 4 Arabian Gulf Corporation reports the following stockholders' equity section on December 31, 2020. - Common stock; $10 par value; 500,000 shares authorized; 200,000 shares issued and outstanding $ 2,000,000 - Paid in capital in excess of par value, common stock - Retained earnings........ ..400,000 ..900.000 $3,300,000 Total The Corporation completed the following transactions in 2021. 1- Jan. 10, Directors declared a $1 per share cash dividend payable on March 15 to the Jan. 31 stockholders of record. 2-Mar. 01, Purchased 10,000 shares of its own common for $15 per share. 3- Mar. 15, Paid the cash dividend declared on Jan. 10. 4- May 01, Sold 6,000 of its treasury shares at $15 cash per share. 5- Sep. 30, Directors declared a 30% stock dividend when the share market price is $16. 6- Nov. 01, Distributed stock dividends declared on Sep. 30. 7- Nov. 15, The company implemented 5-for-1 stock split for the common stock. Required: Prepare journal entries to record each of these transactions for 2021. CLEARLY INDICATE THE DEBITS & CREDITS Example: XYZ Company pays $10,000 cash to purchase land Answer Dr. Land 10,000 Cr. Cash 10,000 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Question 2 4 points On Dec 31, 2020, ABC Corp issued 4-year, 7% bonds with $2,000,000 as par value, ABC Corp. received $2,240,000 in cash. The bond interest is paid semiannually on June 30 and December 31 every year, Compute the following: Total bonds premium. Interest paid in cash semiannually. The Semiannual amortization amount of the bond premium. Total bonds interest expense over the 4 years. Question 3 2 points Friends Partnership has three partners. The balance of each partner capital in: Alia $48,000, Mariam $50,000 and Fatima $52.000, Alia withdraws from the Partnership. The remaining partners, Mariam and Fatima, agreed to pay cash of $54,000 for Alia from partnership. The partners share income and loss equally. Required How much is the capital balance for the remaining partners Mariam and Fatima after the withdrawal of Alia. Please DO NOT use the "$" and ","signs in you ansewr. For example, if the right answer is Mariam $75,000 and Fatima $85,000, it should be EXACTLY written as: 75000 85000 Mariam Fatima Questions of 16 2 points Question 5 All, Basel and Ziad are sharing income and loss in a 4:3.2 ratio respectively and decided to liquidate their partnership. Prior to the final distribution of cash to the partners, Ali has a capital balance of $(10,000), Basel has a capital balance of $24,000, and Ziad has a capital balance of $36,000. Also, cash balance is $50,000. Ali is NOT able to pay the amount he owes the partnership. Which of the following two journal entries are right to record this liquidation case? OA Basel Capital Ziad Capital 4,000 6,000 All Capital 10,000 Basel capital 18,000 32,000 Ziad capital Cash 50,000 Question Completion Status: Which of the following two journal entries are right to record this liquidation case? OA Basel Capital 4,000 Ziad Capital 6,000 Ali Capital 10,000 Basel capital 18,000 32,000 Ziad capital Cash O B. Basel Capital 5,000 Ziad Capital 5,000 Ali Capital Basel capital 19,000 Ziad capital 31,000 Cash OC. Basel Capital 6,000 Ziad Capital 4,000 Ali Capital Basel capital 18,000 Ziad capital 32,000 Cash OD. Basel Capital 6,000 Ziad Capital 4,000 Ali Capital Basel capital 32,000 Ziad capital 18,000 Cash 50,000 10,000 50,000 10,000 50,000 10,000 50,000
