Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: Issued 15,000 shares of $20 par common stock at $30, receiving cash. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. 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. Paid the cash dividends declared in (d). Purchased 8,000 shares of treasury common stock at $33 per share. 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. Paid the cash dividends to the preferred stockholders. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f). Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Instructions Journalize the selected transactions. The data that follow were taken from the records of Equinox Products Inc. Unless otherwise stated, assume a December 31 balance after adjusting entries. Income statement data: Advertising expense $ 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation expense—office buildings and equipment 30,000 Depreciation expense—store buildings and equipment 100,000 Income tax expense 140,500 Interest expense 21,000 Interest revenue 30,000 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 5,313,000 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 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20Y8 1,700,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 700,000 Income tax payable 44,000 Interest receivable 1,200 Inventory (December 31, 20Y8), at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock, January 1, 20Y8 0 Paid-in capital in excess of par—common stock, January 1, 20Y8 736,800 Paid-in capital in excess of par—preferred stock, January 1, 20Y8 70,000 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), January 1, 20Y8 1,280,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 20Y8 8,197,220 Store buildings and equipment 12,560,000 Treasury stock, January 1, 20Y8 0 Prepare a multiple-step income statement for the year ended December 31, 20Y8. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y8. Prepare a balance sheet in report form as of December 31, 20Y8.

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: Issued 15,000 shares of $20 par common stock at $30, receiving cash. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. 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. Paid the cash dividends declared in (d). Purchased 8,000 shares of treasury common stock at $33 per share. 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. Paid the cash dividends to the preferred stockholders. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f). Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method. Instructions Journalize the selected transactions. The data that follow were taken from the records of Equinox Products Inc. Unless otherwise stated, assume a December 31 balance after adjusting entries. Income statement data: Advertising expense $ 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation expense—office buildings and equipment 30,000 Depreciation expense—store buildings and equipment 100,000 Income tax expense 140,500 Interest expense 21,000 Interest revenue 30,000 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 5,313,000 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 Bonds payable, 5%, due in 10 years 500,000 Cash 282,850 Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20Y8 1,700,000 Dividends: Cash dividends for common stock 155,120 Cash dividends for preferred stock 100,000 Goodwill 700,000 Income tax payable 44,000 Interest receivable 1,200 Inventory (December 31, 20Y8), at lower of cost (FIFO) or market 778,000 Office buildings and equipment 4,320,000 Paid-in capital from sale of treasury stock, January 1, 20Y8 0 Paid-in capital in excess of par—common stock, January 1, 20Y8 736,800 Paid-in capital in excess of par—preferred stock, January 1, 20Y8 70,000 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), January 1, 20Y8 1,280,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, January 1, 20Y8 8,197,220 Store buildings and equipment 12,560,000 Treasury stock, January 1, 20Y8 0 Prepare a multiple-step income statement for the year ended December 31, 20Y8. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y8. Prepare a balance sheet in report form as of December 31, 20Y8.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...

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12-7i Comprehensive Problem 4

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows:

Issued 15,000 shares of $20 par common stock at $30, receiving cash.
Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.
Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.
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.
Paid the cash dividends declared in (d).
Purchased 8,000 shares of treasury common stock at $33 per share.
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.
Paid the cash dividends to the preferred stockholders.
Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f).
Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method.

Instructions

Journalize the selected transactions.

The data that follow were taken from the records of Equinox Products Inc. Unless otherwise stated, assume a December 31 balance after adjusting entries.

Income statement data:
Advertising expense	$ 150,000
Cost of goods sold	3,700,000
Delivery expense	30,000
Depreciation expense—office buildings and equipment	30,000
Depreciation expense—store buildings and equipment	100,000
Income tax expense	140,500
Interest expense	21,000
Interest revenue	30,000
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	5,313,000
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
Bonds payable, 5%, due in 10 years	500,000
Cash	282,850
Common stock, $20 par (400,000 shares authorized; 85,000 shares issued, 94,600 outstanding), January 1, 20Y8	1,700,000
Dividends:
Cash dividends for common stock	155,120
Cash dividends for preferred stock	100,000
Goodwill	700,000
Income tax payable	44,000
Interest receivable	1,200
Inventory (December 31, 20Y8), at lower of cost (FIFO) or market	778,000
Office buildings and equipment	4,320,000
Paid-in capital from sale of treasury stock, January 1, 20Y8	0
Paid-in capital in excess of par—common stock, January 1, 20Y8	736,800
Paid-in capital in excess of par—preferred stock, January 1, 20Y8	70,000
Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), January 1, 20Y8	1,280,000
Premium on bonds payable	19,000
Prepaid expenses	27,400
Retained earnings, January 1, 20Y8	8,197,220
Store buildings and equipment	12,560,000
Treasury stock, January 1, 20Y8	0

Prepare a multiple-step income statement for the year ended December 31, 20Y8.
Prepare a statement of stockholders’ equity for the year ended December 31, 20Y8.
Prepare a balance sheet in report form as of December 31, 20Y8.

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