THERE ARE 20 QUESTIONS. EACH QUESTION WILL BE WORTH 5 POINTS. MAKE THE JOURNAL ENTRY.

IF THERE IS NO JOURNAL ENTRY REQUIRED, YOUR ANSWER MUST INCLUDE NO ENTRY

OPEN BOOK AND NOTES ARE PERMITTED

1. ABC COMPANY PURCHASED $500,000 BONDS IN XYZ COMPANY

2. ABC COMPANY PURCHASED $500,000 STOCK IN XYZ COMPANY

3. ABC COMPANY PURCHASED 5,000 SHARES OF ITS OWN COMMON STOCK FOR ITS TREASURY.

THE PAR VALUE IS $3/SH AND THE SELLING PRICE IS $100/SH

4. BASED ON 3. ABOVE, ABC COMPANY SOLD 1,000 SHARES OF ITS TREASURY STOCK FOR $102/SH

5. ABC COMPANY ISSUED 10,000 SHARES OF ITS COMMON STOCK FOR CASH. PV IS $3/SH AND

THE SELLING PRICE IS $99/SH

6. ABC COMPANY ISSUED 10,000 SHARES OF ITS COMMON STOCK IN ITS PURCHASE OF LAND.

LANDS ASKING PRICE IS $500,000.

LANDS SELLING PRICE IS $450,000

PV OF STOCK IS $3/SH

SELLING PRICE OF STOCK IS $46/SH

7. ABC COMPANY PAID ITS ATTORNEY $20,000 TO INCORPORATE BUSINESS

8. ABC COMPANY ISSUED $400,000 BONDS FOR 97

9. ABC COMPANY ISSUED $400,000 BONDS FOR 102

10. ABC COMPANY DECLARED A 2 FOR 1 STOCK SPLIT WHEN PV WAS $3/SH AND THE NUMBER OF

SHARES OUTSTANDING WAS 100,000

11. ABC COMPANY DECLARED A 5% STOCK DIVIDEND. PV IS $1.50/SH AND THERE ARE 200,000

SHARES OF COMMON STOCK OUTSTANDING AND THE SELLING PRICE IS $46/SH

12. DATE OF RECORD FOR 11. ABOVE

13. ISSUED STOCK DIVIDENDS FROM 11. ABOVE

14. DECLARED A $2 CASH DIVIDEND. THERE ARE 210,000 SHARES OF COMMON STOCK

OUTSTANDING. THE COMMON STOCK HAS A $1.50 PAR VALUE PER SHARE AND THE STOCKS

SELLING PRICE IS $46/SH

15. DATE OF RECORD FOR 14. ABOVE

16. PAID 14. ABOVE

17. ON 7/1, RECEIVED INTEREST FROM INVESTMENT YOU PURCHASED. THE ORIGINAL INVESTMENT

WAS FOR $300,000, PAYING 10% INTEREST SEMI ANNUALLY ON 7/1 AND 1/1. PREPARE THE

JOURNAL ENTRY FOR 7/1

18. BASED ON 17 ABOVE, PREPARE THE JOURNAL ENTRY ON 12/31

19. BASED ON 17 ABOVE, PREPARE THE JOURNAL ENTRY ON 1/1

20. CLOSED OUT $400,000 NET INCOME