Record on journal page 10:

Jan.	3	Issued 15,000 shares of $20 par common stock at $30, receiving cash.
Feb.	15	Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.
May	1	Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.
	16	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 this transaction as two separate entries.
	26	Paid the cash dividends declared on May 16.
Jun.	1	Purchased 7,500 shares of Solstice Corp. at $40 per share plus a $150 brokerage commission. The investment is classified as an available-for-sale investment.
	8	Purchased 8,000 shares of treasury common stock at $33 per share.
	22	Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment.
	30	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.
Jul.	11	Paid the cash dividends declared on Jun. 30 to the preferred stockholders.
Aug.	27	Received $27,500 dividend from Pinkberry Co. investment of Jun. 22.

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.

DATE DESCRIPTION POST. REF. DEBIT CREDIT LIABILITIES EQUITY ASSETS 1 1 Jan. 3 Cash 450,000.00 2 Common Stock 300,000.00 1 V 3 Paid-in Capital in Excess of Par-Common Stock 150,000.00 1 4 Feb. 15 Cash 400,000.00 t 5 Preferred Stock 320,000.00 1 6 80,000.00 1 Paid-in Capital in Excess of Par-Preferred Stock May 1 Cash 7 520,000.00 1 8 Bonds Payable 500,000.00 1 9 Premium on Bonds Payable 20,000.00 t 10 May 16 Cash Dividends 50,000.00 1 11 Cash Dividends Payable 50,000.00 1 12 May 16 Cash Dividends 20,000.00 + 13 Cash Dividends Payable 20,000.00 1 14 May 26 Cash Dividends Payable 70,000.00 + 15 Cash 70,000.00 + 16 Jun. 1 Investment in Pinkberry Co. Stock 300,150.00 1 17 Cash 300,150.00 + 18 Jun. 8 Treasury Stock 264,000.00 + 19 Cash 264,000.00 + 20 Jun. 30 Cash Dividends 20,000.00 + 21 Cash Dividends Payable 20,000.00 t 22 Jul. 11 Cash Dividends Payable 20,000.00 1 23 Cash 20,000.00 1 1 24 Aug. 27 Cash 27,500.00 1 25 Investment in Pinkberry Co. Stock 27,500.00 + 26 Oct. 1 Investment in Pinkberry Co. Stock 90,000.00 27 Cash 90,000.00 12,500.00 JOURNAL Score: 153/249 ACCOUNTING EQUATION DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY DATE Oct. 7' Cash 1 98,800.00 f V 2 Treasury Stock 85,800.00 t V 3 Paid-in Capital from Sale of Treasury Stock 13,000.00 1 4 Oct. 31 Interest Expense 11,500.00 + 5 Premium on Bonds Payable 1,000.00 1 V 6 Cash 12,500.00 + 7 Dec. 31 Interest Receivable 1,125.00 1 V 8 Interest Revenue 1,125.00 1 9 Dec. 31 Investment in Pinkberry Co. Stock 76,800.00 1 10 76,800.00 1 Income of Pinkberry Co. investment Dec. 31 Valuation Allowance for Available-for-Sale Investments 11 12 Unrealized Gain (Loss) on Available for Sale Investments 13 a 14 a 15 a 16 a 17 a 18 Interest Expense 19 Valuation Allowance for Available-for-Sale Investments 20 Valuation Allowance for Available-for-Sale Investments