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that you have followed the instructions above Journal Entries A

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that you have followed the instructions above Journal Entries A. Issued 1500 shares of $10 par common stock at $11, receiving cash, B. Issued $ 30000 of 10 year 10% bonds at a market (effective) interest rate of 9% with interest payable semiannually. Use the Present Value Tables in Appendix A of text book. Round all calculations to the nearest dollar. 16 points) (points) C. Declared a dividend of $0.25 per share on common stock. On date of declaration 4800 shares of common stock were outstanding. D. Paid cash dividend from (c) above. 3 points) (2 points) (3 points) (5 points) (2 points) E. Purchased 1800 shares of Jones Company for $10 per share, plus $900 commission. Our company purchased less than 20% of the outstanding stock of Jones Company. F. Declared a 5% stock dividend on the $10 par common stock when the market price was $ 25 per share. There were 4800 Shares outstanding, G. Distributed the stock dividends declared in (F). H. Purchased $5000 of 5% bonds at par Interest is payable semiannually. I. Purchased 90 shares of treasury common stock for $12 per share. J. Received semiannual interest from bonds purchased in (H). K. Received a total cash dividend of $180 from Jones Company L. Received a $300 dividend from our investment in Masco Company stock. This investment is accounted for under the equity method. (3 points) (3 points) (3 points) (3 points) (3 points) PES M. Sold, at $17 per share, 45 shares of treasury common stock purchased in (1). (6 points) N. Sold 360 shares of Jones company stock purchased in (E) for $13 per share, including commission. (6 points) O. Masco Company's total earnings are $15000. We own 40%. Record the earnings for our company using the equity method. (3 points) P. Sold the bonds purchased in (H) at 103 plus $63 in accrued interest. (8 points) Q. At the end of the accounting period, the remaining shares of Jones Company stock increased $2.00 per share (3 Points) R. Record the payment of semiannual interest on the bonds issued in (B) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Round all calculations to the nearest dollar. (6 points) Page 3 Accounting Name dints total 2 - 8 points each (75 points) 1500 1500 A 31.500 B Journal Entries Cash Common Stock Paid in Capital in Excess of for Cash Bonds Payable Premion Bonds Rocable Cash Dividends Cash Dividends Payable Cash Divides fable 30.00 1507 C Trace E 1825 18,200 SOS lanoo 2.400 3,600 Stock Dividends Common Stock Dividends Paldin Codul Eyness of for Common Stock Dividends Distributable 2 A60 Common stack G 2,402 Bond Investment 5.077) I Treasury Stock 120go 1,080 Cash Tas Intenst Revenue 125 IP20 180 180 X 350 IL Cash Dividend Deum Cech Investment -Moeco Comp. Stock Cash 302 765 istr M 540 225 N Aleso 3,750 Cash Equity Investment at Coast Gain from sale of Investment 9018 15.00 P Investment in Manco Camp, Stock Income - Master Company Cash Interest Revenue Band Investments Gain on sale of Investment 5213 5,000 15 2,880 Naluation Allowance - Equity Investo Unrealized Gain on Eghty Inv. Interest Expense Premium on Bonds Payable Cash 1425 1,507 Part 2 Instructions: Page 2 me balances listed below are for December 31 and already include the journal entries you just prepared except for the stockholders' equity accounts. The balances listed for the stockholders equity accounts are the January 1 balances. You will need to utilize the journal entries you just prepared to complete the Statement of Stockholders' Equity Prepare a multistep income statement, a statement of stockholders' equity, and a classified balance sheet in good form for the year ended December 31, 20X1. Use the Student Input Form (Excel File) to complete the Financial Statements Credit Debit 90,000 59.000 3,000 15,000 1,500 6,000 900 600 4,500 91,500 45,000 23,970 2,000 30,000 1.500 68,415 0 0 33,000 Cash Accounts receivable Allowance for doubtful accounts Equity Investments at cost Valuation allowance for Equity Investments Merchandise inventory at lower of cost (FIFO) or market Prepaid expenses Interest receivable Investment in Masco Company stock Store buildings and equipment Accumulated depreciation-store buildings and equipment Accounts payable Income tax payable Bonds payable, 10%, due in 10 years Premium on bonds payable Retained earnings, January 1, 20X1 Cash dividends, January 1, 20X1 balance Stock Dividends, January 1, 20X1 balance Common stock, $10 par (100,000 shares authorized: 3300 shares outstanding), January 1, 20X1 Paid-in capital in excess of par-common stock, January 1, 20X1 Paid-in capital from sale of treasury stock, January 1, 20X1 Treasury stock, January 1, 20X1 Sales Gain from sale of investment Unrealized gain(loss) on Equity Investments Dividend revenue Interest revenue Income of Masco Company Cost of goods sold Advertising expense Depreciation expense-store buildings and equipment Miscellaneous selling expenses Sales commissions Office rent expense Office salaries expense Miscellaneous administrative expenses Interest expense Income tax expense 3,300 0 01 210,000 300 2,880 240 810 6,000 120,000 $3,000 2.100 1,500 6,000 15,000 18,000 300 1,500 12.000 Page 5 ABC Corporation, Inc. Income Statement For the Year Ended December 31, 20X1 (27 points) 210,000 120,000 12,600 Sales Less lost of Goods Sold Gross Aokit Selling 4 Administrative Expenses: Selling Expenses : Advertising Expenses 3.000 Depreciation Expense Stare Building Equipmed 2,100 Sales Commissions 1000 Misc Selling EXPENSES 1.500 Total Selling Expenses Adminische Expenses Office Rent Expense 15.00 Office Sobries Expense 18.000 Misc. Admin Exsense The Adminibane Boxes Total Selling 4 Administrative Expenses Income from Operations Other Income / Expenses : Didend Revenue 240 SIO Interest Revenue Income from masco Company Gain from sale of Investments 300 Interest Expense (1,500) Income before takes Income Tax Expense Net Income 337200 15,900 5,850 149.950 12.00 37,950 ABC Corporation, Inc. Balance Sheet December 31, 20X1 Page 7 (36 points) Assets Liabilities Stockholders' Equity Page Treasury Stock Total Retained Earnings 0 ABC Corporation, Inc. Statement of Stockholders' Equity For the Year Ended December 31, 20X1 (12 points) Common Stock Paid-in Capital in Paid-in Excess of Par - Capital from Common Stock sale of Treasury Stock Balances, January 1 0 Issued common stock Net income Cash dividends Stock dividends Sale of treasury stock Purchase of treasruy stock Balances December 31