The stockholders' equity section of Fleming Corporation at December 31, 2013, included the following:

4% preferred stock, $100 par value, cumulative, 15,000 shares authorized, 10,000 shares issued and outstanding		$1,000,000
Common stock, $10 par value, 250,000 shares authorized, 200,000 shares issued and outstanding		$2,000,000

Dividends were not declared on the preferred stock in 2013 and are in arrears.

On September 15, 2014, the board of directors of Fleming Corporation declared dividends on the preferred stock to stockholders of record on October 1, 2014, payable on October 15, 2014.

On November 1, 2014, the board of directors declared a $1 per share dividend on the common stock, payable November 30, 2014, to stockholders of record on November 15, 2014.

Prepare the journal entries that should be made by Fleming Corporation.

Question 23

Perez Co. receives $2,200,000 when it issues a $2,200,000, 8%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $140,820 on June 30 and December 31.

Prepare the journal entries to record the mortgage loan and the first two installment payments.

Question 22

Shannon Company issued $1,000,000, 8%, 10-year bonds on December 31, 2013, for $960,000. Interest is payable annually on December 31. Shannon uses the straight-line method to amortize bond premium or discount.

Prepare the journal entries to record the following events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

(a)		The issuance of the bonds.
(b)		The payment of interest and the discount amortization on December 31, 2014.
(c)		The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

During the month of March, Preston Company's employees earned wages of $90,000. Withholdings related to these wages were $6,885 for Social Security (FICA), $14,200 for federal income tax, $6,200 for state income tax, and $600 for union dues. The company incurred no cost related to these earnings for federal unemployment tax, but incurred $1,300, for state unemployment tax. IE

Prepare the necessary March 31 journal entry to record wages expense and wages payable. Assume that wages earned during March will be paid during April. Prepare the entry to record the company's payroll tax expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)