Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. 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. e. Paid the cash dividends declared in (d). f. Purchased 8,000 shares of treasury common stock at $33 per share. g. 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. h. Paid the cash dividends to the preferred stockholders. i. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f). j. 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 1. Journalize the selected transactions. 2. The data that follow were taken from the records of Equinox Products Inc. Unless otherwise stated, assume a December 31 balance after adjusting entries. a. Prepare a multiple-step income statement for the year ended December 31, 20Y8. b. Prepare a statement of stockholders’ equity for the year ended December 31, 20Y8. c. Prepare a balance sheet in report form as of December 31, 20Y8.

BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663
BuyFind

Financial And Managerial Accounting

15th Edition
WARREN + 1 other
Publisher: Cengage Learning,
ISBN: 9781337902663

Solutions

Chapter 12, Problem 1COMP
Textbook Problem

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

  1. a. Issued 15,000 shares of $20 par common stock at $30, receiving cash.
  2. b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.
  3. c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.
  4. d. 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.
  5. e. Paid the cash dividends declared in (d).
  6. f. Purchased 8,000 shares of treasury common stock at $33 per share.
  7. g. 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.
  8. h. Paid the cash dividends to the preferred stockholders.
  9. i. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f).
  10. j. 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

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

Chapter 12, Problem 1COMP, Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31,

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

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Chapter 12 Solutions

Financial And Managerial Accounting
Ch. 12 - Dividends per share Zero Calories Company has...Ch. 12 - Entries for issuing stock On January 22, Zentric...Ch. 12 - Entries for cash dividends The declaration,...Ch. 12 - Entries for stock dividends Alpine Energy...Ch. 12 - Entries for treasury stock On May 27, Hydro...Ch. 12 - Reporting stockholders equity Using the following...Ch. 12 - Statement of stockholders equity Noric Cruises...Ch. 12 - Earnings per share Financial statement data for...Ch. 12 - Dividends per share Seventy-Two Inc., a developer...Ch. 12 - Dividends per share Lightfoot Inc., a software...Ch. 12 - Entries for issuing par stock On January 22,...Ch. 12 - Entries for issuing no-par stock On May 15, Helena...Ch. 12 - Issuing stock for assets other than cash On...Ch. 12 - Selected stock transactions Alpha Sounds Corp., an...Ch. 12 - Issuing stock Willow Creek Nursery, with an...Ch. 12 - Issuing stock Professional Products Inc., a...Ch. 12 - Entries for cash dividends The declaration,...Ch. 12 - Entries for stock dividends Healthy Life Co. is an...Ch. 12 - Effect of stock split Willeys Grill Restaurant...Ch. 12 - Effect of cash dividend and stock split Indicate...Ch. 12 - Selected dividend transactions, stock split...Ch. 12 - Treasury stock transactions Mystic Lake Inc....Ch. 12 - SprayCo Inc. develops and produces spraying...Ch. 12 - Treasury stock transactions Biscayne Bay Water...Ch. 12 - Reporting paid-in capital The following accounts...Ch. 12 - Stockholders' Equity section of balance sheet The...Ch. 12 - Stockholders' Equity section of balance sheet...Ch. 12 - Retained earnings statement Sumter Pumps...Ch. 12 - Stockholders' Equity section of balance sheet List...Ch. 12 - Statement of stockholders equity The stockholders...Ch. 12 - Dividends on preferred and common stock Pecan...Ch. 12 - Stock transactions for corporate expansion On...Ch. 12 - Selected stock transactions The following selected...Ch. 12 - Entries for selected corporate transactions Morrow...Ch. 12 - Entries for selected corporate transactions...Ch. 12 - Dividends on preferred and common stock Yosemite...Ch. 12 - Stock transaction for corporate expansion Pulsar...Ch. 12 - Selected stock transactions Diamondback Welding ...Ch. 12 - Entries for selected corporate transactions Nav-Go...Ch. 12 - Entries for selected corporate transactions West...Ch. 12 - Selected transactions completed by Equinox...Ch. 12 - Analyze and compare Amazon.com and Wal-Mart...Ch. 12 - Analyze and compare Bank of America and Wells...Ch. 12 - Analyze Pacific Gas and Electric Company Pacific...Ch. 12 - Analyze Caterpillar Caterpillar Inc. (CAT) is the...Ch. 12 - Analyze and compare BBT and Regions Financial BBT...Ch. 12 - Ethics in Action Tommy Gunn is a division manager...Ch. 12 - Issuing stock Lou Hoskins and Shirley Crothers are...Ch. 12 - Communications Motion Designs Inc. has paid...

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