journalize the selected transacations:Jan.3Issued 15,000 shares of $20 par common stock at $30, receiving cash.Feb.15Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.May1Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. 16Declared 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 as two separate entries. 26Paid the cash dividends declared on May 16.Jun.1Purchased 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. 8Purchased 8,000 shares of treasury common stock at $33 per share. 22Purchased 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. 30Declared 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.11Paid the cash dividends declared on Jun. 30 to the preferred stockholders.Aug.27Received $27,500 dividend from Pinkberry Co. investment of Jun. 22.Oct.1Purchased $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. 7Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8. 14Received a dividend of $0.60 per share from the Solstice Corp. investment on Jun. 1. 29Sold 1,000 shares of Solstice Corp. at $45, including commission. 31Recorded 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.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 investmentDec.31Accrued interest for three months on the Dream Inc. bonds purchased on Oct. 1. 31Pinkberry Co. recorded total earnings of $240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. 31The 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. Income Statement data: Advertising expense$150,000Cost of merchandise sold3,700,000Delivery expense30,000Depreciation expense-office buildings and equipment30,000Depreciation expense-store buildings and equipment100,000Dividend revenue4,500Gain on sale of investment4,980Income of Pinkberry Co. investment76,800Income tax expense140,500Interest expense21,000Interest revenue2,720Miscellaneous administrative expense7,500Miscellaneous selling expense14,000Office rent expense50,000Office salaries expense170,000Office supplies expense10,000Sales5,254,000Sales commissions185,000Sales salaries expense385,000Store supplies expense21,000 Retained earnings and balance sheet data: Accounts payable$194,300Accounts receivable545,000Accumulated depreciation—office buildings and equipment1,580,000Accumulated depreciation—store buildings and equipment4,126,000Allowance for doubtful accounts8,450Available-for-sale investments (at cost)260,130Bonds payable, 5%, due 20Y2500,000Cash246,000Common stock, $20 par (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding)2,000,000Dividends: Cash dividends for common stock155,120 Cash dividends for preferred stock100,000Goodwill500,000Income tax payable44,000Interest receivable1,125Investment in Pinkberry Co. stock (equity method)1,009,300Investments-Dream Inc. bonds (long term)90,000Merchandise inventory (December 31, Year 1), at lower of cost (FIFO) or market778,000Office buildings and equipment4,320,000Paid-in capital from sale of treasury stock13,000Excess of issue price over par: -Common stock886,800 -Preferred stock150,000Preferred 5% stock, $80 par (30,000 shares authorized; 20,000 shares issued)1,600,000Premium on bonds payable19,000Prepaid expenses27,400Retained earnings, January 1, Year 19,319,725Store buildings and equipment12,560,000Treasury stock (5,400 shares of common stock at cost of $33 per share)178,200Unrealized gain (loss) on available-for-sale investments(6,500)Valuation allowance for available-for-sale investments(6,500)

Question

journalize the selected transacations:Jan.3Issued 15,000 shares of $20 par common stock at $30, receiving cash.Feb.15Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.May1Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. 16Declared 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 as two separate entries. 26Paid the cash dividends declared on May 16.Jun.1Purchased 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. 8Purchased 8,000 shares of treasury common stock at $33 per share. 22Purchased 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. 30Declared 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.11Paid the cash dividends declared on Jun. 30 to the preferred stockholders.Aug.27Received $27,500 dividend from Pinkberry Co. investment of Jun. 22.Oct.1Purchased $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. 7Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8. 14Received a dividend of $0.60 per share from the Solstice Corp. investment on Jun. 1. 29Sold 1,000 shares of Solstice Corp. at $45, including commission. 31Recorded 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.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 investmentDec.31Accrued interest for three months on the Dream Inc. bonds purchased on Oct. 1. 31Pinkberry Co. recorded total earnings of $240,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. 31The 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.    Income Statement data: Advertising expense$150,000Cost of merchandise sold3,700,000Delivery expense30,000Depreciation expense-office buildings and equipment30,000Depreciation expense-store buildings and equipment100,000Dividend revenue4,500Gain on sale of investment4,980Income of Pinkberry Co. investment76,800Income tax expense140,500Interest expense21,000Interest revenue2,720Miscellaneous administrative expense7,500Miscellaneous selling expense14,000Office rent expense50,000Office salaries expense170,000Office supplies expense10,000Sales5,254,000Sales commissions185,000Sales salaries expense385,000Store supplies expense21,000    Retained earnings and balance sheet data: Accounts payable$194,300Accounts receivable545,000Accumulated depreciation—office buildings and equipment1,580,000Accumulated depreciation—store buildings and equipment4,126,000Allowance for doubtful accounts8,450Available-for-sale investments (at cost)260,130Bonds payable, 5%, due 20Y2500,000Cash246,000Common stock, $20 par  (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding)2,000,000Dividends:  Cash dividends for common stock155,120 Cash dividends for preferred stock100,000Goodwill500,000Income tax payable44,000Interest receivable1,125Investment in Pinkberry Co. stock (equity method)1,009,300Investments-Dream Inc. bonds (long term)90,000Merchandise inventory (December 31, Year 1),  at lower of cost (FIFO) or market778,000Office buildings and equipment4,320,000Paid-in capital from sale of treasury stock13,000Excess of issue price over par:  -Common stock886,800 -Preferred stock150,000Preferred 5% stock, $80 par  (30,000 shares authorized; 20,000 shares issued)1,600,000Premium on bonds payable19,000Prepaid expenses27,400Retained earnings, January 1, Year 19,319,725Store buildings and equipment12,560,000Treasury stock  (5,400 shares of common stock at cost of $33 per share)178,200Unrealized gain (loss) on available-for-sale investments(6,500)Valuation allowance for available-for-sale investments(6,500)

Accepted Answer

Journal Entries is the primary entry in the books of the business.

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 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.

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.



Income Statement data:
Advertising expense	$150,000
Cost of merchandise sold	3,700,000
Delivery expense	30,000
Depreciation expense-office buildings and equipment	30,000
Depreciation expense-store buildings and equipment	100,000
Dividend revenue	4,500
Gain on sale of investment	4,980
Income of Pinkberry Co. investment	76,800
Income tax expense	140,500
Interest expense	21,000
Interest revenue	2,720
Miscellaneous administrative expense	7,500
Miscellaneous selling expense	14,000
Office rent expense	50,000
Office salaries expense	170,000
Office supplies expense	10,000
Sales	5,254,000
Sales commissions	185,000
Sales salaries expense	385,000
Store supplies expense	21,000

Retained earnings and balance sheet data:
Accounts payable	$194,300
Accounts receivable	545,000
Accumulated depreciation—office buildings and equipment	1,580,000
Accumulated depreciation—store buildings and equipment	4,126,000
Allowance for doubtful accounts	8,450
Available-for-sale investments (at cost)	260,130
Bonds payable, 5%, due 20Y2	500,000
Cash	246,000
Common stock, $20 par
(400,000 shares authorized; 100,000 shares issued, 94,600 outstanding)	2,000,000
Dividends:
Cash dividends for common stock	155,120
Cash dividends for preferred stock	100,000
Goodwill	500,000
Income tax payable	44,000
Interest receivable	1,125
Investment in Pinkberry Co. stock (equity method)	1,009,300
Investments-Dream Inc. bonds (long term)	90,000
Merchandise inventory (December 31, Year 1),
at lower of cost (FIFO) or market	778,000
Office buildings and equipment	4,320,000
Paid-in capital from sale of treasury stock	13,000
Excess of issue price over par:
-Common stock	886,800
-Preferred stock	150,000
Preferred 5% stock, $80 par
(30,000 shares authorized; 20,000 shares issued)	1,600,000
Premium on bonds payable	19,000
Prepaid expenses	27,400
Retained earnings, January 1, Year 1	9,319,725
Store buildings and equipment	12,560,000
Treasury stock
(5,400 shares of common stock at cost of $33 per share)	178,200
Unrealized gain (loss) on available-for-sale investments	(6,500)
Valuation allowance for available-for-sale investments	(6,500)

journalize the selected transacations: 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,