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Comprehensive Problem 4 Part 1:

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows:

1. Journalize the selected transactions.

If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

a. Issued 15,000 shares of $20 par common stock at $30, receiving cash.

Description	Debit	Credit
CashCommon StockNo entry requiredPaid-In Capital in Excess of Par-Common StockRetained Earnings	fill in the blank 2	fill in the blank 3
CashCommon StockNo entry requiredRetained EarningsTreasury Stock	fill in the blank 5	fill in the blank 6
Accounts PayableCashNo entry requiredPaid-In Capital in Excess of Par-Common StockPreferred Stock	fill in the blank 8	fill in the blank 9

b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.

Description	Debit	Credit
CashNo entry requiredPaid-In Capital in Excess of Par-Preferred StockPreferred StockRetained Earnings	fill in the blank 11	fill in the blank 12
Common StockNo entry requiredPreferred StockRetained EarningsTreasury Stock	fill in the blank 14	fill in the blank 15
CashCommon StockNo entry requiredPaid-In Capital in Excess of Par-Preferred StockRetained Earnings	fill in the blank 17	fill in the blank 18

c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.

Description	Debit	Credit
Bonds PayableCashNo entry requiredPremium on Bonds PayableRetained Earnings	fill in the blank 20	fill in the blank 21
Bonds PayableCashCommon StockDiscount on Bonds PayableNo entry required	fill in the blank 23	fill in the blank 24
CashDiscount on Bonds PayableNo entry requiredPaid-In Capital in Excess of Par-Common StockPremium on Bonds Payable	fill in the blank 26	fill in the blank 27

d. Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. Journalize the common stock and the preferred stock entries separately.

Description	Debit	Credit
CashCash DividendsCash Dividends PayableNo entry requiredTreasury Stock	fill in the blank 29	fill in the blank 30
CashCash DividendsCash Dividends PayableNo entry requiredTreasury Stock	fill in the blank 32	fill in the blank 33
Common stock
CashCash DividendsCash Dividends PayableNo entry requiredTreasury Stock	fill in the blank 35	fill in the blank 36
CashCash DividendsCash Dividends PayableNo entry requiredTreasury Stock	fill in the blank 38	fill in the blank 39
Preferred stock

e. Paid the cash dividends declared in (d).

Description	Debit	Credit
CashCash DividendsCash Dividends PayableNo entry requiredTreasury Stock	fill in the blank 41	fill in the blank 42
CashCash DividendsCash Dividends PayableNo entry requiredTreasury Stock	fill in the blank 44	fill in the blank 45

f. Purchased 8,000 shares of treasury common stock at $33 per share.

Description	Debit	Credit
CashCommon StockNo entry requiredPaid-In Capital from Sale of Treasury StockTreasury Stock	fill in the blank 47	fill in the blank 48
CashCommon StockNo entry requiredPaid-In Capital from Sale of Treasury StockTreasury Stock	fill in the blank 50	fill in the blank 51

g. Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued.

Description	Debit	Credit
Cash DividendsCommon StockNo entry requiredStock DividendsStock Dividends Distributable	fill in the blank 53	fill in the blank 54
CashCash Dividends PayableCommon StockNo entry requiredTreasury Stock	fill in the blank 56	fill in the blank 57

h. Paid the cash dividends to the preferred stockholders.

Description	Debit	Credit
CashCash Dividends PayableCommon StockNo entry requiredRetained Earnings	fill in the blank 59	fill in the blank 60
CashCash DividendsCash Dividends PayableCommon StockNo entry required	fill in the blank 62	fill in the blank 63

i. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f).

Description	Debit	Credit
CashCommon StockNo entry requiredPaid-In Capital from Sale of Treasury StockTreasury Stock	fill in the blank 65	fill in the blank 66
CashNo entry requiredPaid-In Capital in Excess of Par-Common StockRetained EarningsTreasury Stock	fill in the blank 68	fill in the blank 69
CashCommon StockDividends RevenueNo entry requiredPaid-In Capital from Sale of Treasury Stock	fill in the blank 71	fill in the blank 72

j. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method.

Description	Debit	Credit
Bonds PayableCashDiscount on Bonds PayableInterest ExpenseNo entry required	fill in the blank 74	fill in the blank 75
Bonds PayableCashDiscount on Bonds PayableNo entry requiredPremium on Bonds Payable	fill in the blank 77	fill in the blank 78
Bonds PayableCashDiscount on Bonds PayableNo entry requiredPremium on Bonds Payable	fill in the blank 80	fill in the blank

Comprehensive Problem 3 Part 3:

Note: You must complete parts 1 and 2 before completing part 3 of this comprehensive problem.

Based on the bank reconciliation prepared in (2), journalize the entry or entries to be made by Kornett Company. Use the Miscellaneous Administrative Expense account to record bank service charges. If an amount box does not require an entry, leave it blank.

Date	Description	Debit	Credit
Dec. 31	Accounts ReceivableCashMiscellaneous Administrative ExpenseNotes PayablePetty Cash	fill in the blank 2	fill in the blank 3
	Accounts PayableAccounts ReceivableCash Short and OverNotes PayableSales	fill in the blank 5	fill in the blank 6
	Accounts PayableBad Debt ExpenseCashNotes PayablePetty Cash	fill in the blank 8	fill in the blank 9