Question
Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows: Jan. 9 Split the common stock 3 for 1 and
Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows:
Jan. 9 Split the common stock 3 for 1 and reduced the par from $75 to $25 per share. After the split, there were 1,200,000 common shares outstanding.
Feb. 28 Purchased 40,000 shares of the corporations own common stock at $28, recording the stock at cost.
May 1 Declared semiannual dividends of $0.80 per share on 75,000 shares of preferred stock and $0.12 per share on the common stock to stockholders of record on June 1, payable on July 10.
Jul. 10 Paid the cash dividends. Sep. 7 Sold 30,000 shares of treasury stock at $34, receiving cash.
Oct. 1 Declared semiannual dividends of $0.80 per share on the preferred stock and $0.12 per share on the common stock (before the stock dividend). In addition, a 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36.
Dec. 1 Paid the cash dividends and issued the certificates for the common stock dividend.
(Only 18 rows)
CHART OF ACCOUNTSPrimo Discount CorporationGeneral Ledger ASSETS110Cash120Accounts Receivable131Notes Receivable132Interest Receivable141Inventory145Office Supplies151Prepaid Insurance181Land193Equipment194Accumulated Depreciation-Equipment LIABILITIES210Accounts Payable221Notes Payable226Interest Payable231Cash Dividends Payable241Salaries Payable261Mortgage Note Payable EQUITY236Stock Dividends Distributable311Common Stock312Paid-In Capital in Excess of Par-Common Stock315Treasury Stock321Preferred Stock322Paid-In Capital in Excess of Par-Preferred Stock331Paid-In Capital from Sale of Treasury Stock340Retained Earnings351Cash Dividends352Stock Dividends REVENUE410Sales610Interest Revenue EXPENSES510Cost of Goods Sold515Credit Card Expense520Salaries Expense531Advertising Expense532Delivery Expense533Selling Expenses534Rent Expense535Insurance Expense536Office Supplies Expense537Organizational Expenses562Depreciation Expense-Equipment590Miscellaneous Expense710Interest Expense JOURNAL \begin{tabular}{|l|l|l|l|l|l|} \hline & DATE & DESCRIPTION & POST. REF. & DEBIT & CREDIT \\ \hline 1 & & & & \\ \hline 2 & & & & \\ \hline 3 & & & & \\ \hline 4 & & & & \\ \hline 5 & & & & \\ \hline 6 & & & & \\ \hline 7 & & & & \\ \hline 8 & & & & \\ \hline 9 & & & & \\ \hline 10 & & & & \\ \hline 11 & & & & \\ \hline \end{tabular}Step by Step Solution
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