a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. Descr D C b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. Descr D C c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. Descr D C 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. Journalize the common stock and the preferred stock entries separately. Descr D C e. Paid the cash dividends declared in (d). Descr D C f. Purchased 8,000 shares of treasury common stock at $33 per share. Descr D C 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. Descr D C h. Paid the cash dividends to the preferred stockholders. Descr D C i. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f). Descr D C j. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for 6 months. The amortization is determined using the straight-line method. Descr D C You must complete part 1 before part 2. After all of the transactions for the year ended Dec 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data below were taken from the records of Equinox Products Inc. Unless otherwise stated, assume a Dec 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 Misc administrative expense 7,500 Misc 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), Jan 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 (Dec 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, Jan 1, 20Y8 0 Paid-in capital in excess of par—common stock, Jan 1, 20Y8 736,800 Paid-in capital in excess of par—preferred stock, Jan 1, 20Y8 70,000 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), Jan 1, 20Y8 1,280,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, Jan 1, 20Y8 8,197,220 Store buildings and equipment 12,560,000 Treasury stock, Jan 1, 20Y8 0 a. Prepare a multiple-step income statement for the year ended Dec 31, 20Y8. Equinox Products Inc. Income Statement For the Year Ended Dec 31, 20Y8 Sales $ Gross profit $ Operating expenses: Selling expenses: $ $ Administrative expenses: $ Total operating expenses Operating income $ Other revenue and expense: $ Income before income tax $ Income tax Net income $ b. Prepare a statement of stockholders’ equity for the year ended Dec 31, 20Y8. Decreases in equity and purchase should be entered as negative amounts by using a minus sign. If your answer is zero, enter “0”. Equinox Products Inc. Statement of Stockholders' Equity For the Year Ended Dec. 31, 20Y8 Preferred Stock Paid-In Capital in Excess of Par— Preferred Stock Common Stock Paid-In Capital in Excess of Par— Common Stock Paid-In Capital from Sale of Treasury Stock Retained Earnings Treasury Stock Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ c. Prepare a balance sheet in report form as of Dec 31, 20Y8. Equinox Products Inc. Balance Sheet Dec 31, 20Y8 Assets Current assets: $ $ Total current assets $ Property, plant, and equipment: $ $ $ Total property, plant, and equipment Intangible assets: Total assets $ Liabilities Current liabilities: $ Total current liabilities $ Long-term liabilities: $ Total liabilities $ Stockholders’ Equity Paid-in capital: $ $ $ Total paid-in capital $ Total stockholders’ equity Total liabilities and Stockholders’ Equity $

a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. Descr D C b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. Descr D C c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. Descr D C 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. Journalize the common stock and the preferred stock entries separately. Descr D C e. Paid the cash dividends declared in (d). Descr D C f. Purchased 8,000 shares of treasury common stock at $33 per share. Descr D C 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. Descr D C h. Paid the cash dividends to the preferred stockholders. Descr D C i. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f). Descr D C j. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for 6 months. The amortization is determined using the straight-line method. Descr D C You must complete part 1 before part 2. After all of the transactions for the year ended Dec 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data below were taken from the records of Equinox Products Inc. Unless otherwise stated, assume a Dec 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 Misc administrative expense 7,500 Misc 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), Jan 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 (Dec 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, Jan 1, 20Y8 0 Paid-in capital in excess of par—common stock, Jan 1, 20Y8 736,800 Paid-in capital in excess of par—preferred stock, Jan 1, 20Y8 70,000 Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), Jan 1, 20Y8 1,280,000 Premium on bonds payable 19,000 Prepaid expenses 27,400 Retained earnings, Jan 1, 20Y8 8,197,220 Store buildings and equipment 12,560,000 Treasury stock, Jan 1, 20Y8 0 a. Prepare a multiple-step income statement for the year ended Dec 31, 20Y8. Equinox Products Inc. Income Statement For the Year Ended Dec 31, 20Y8 Sales $ Gross profit $ Operating expenses: Selling expenses: $ $ Administrative expenses: $ Total operating expenses Operating income $ Other revenue and expense: $ Income before income tax $ Income tax Net income $ b. Prepare a statement of stockholders’ equity for the year ended Dec 31, 20Y8. Decreases in equity and purchase should be entered as negative amounts by using a minus sign. If your answer is zero, enter “0”. Equinox Products Inc. Statement of Stockholders' Equity For the Year Ended Dec. 31, 20Y8 Preferred Stock Paid-In Capital in Excess of Par— Preferred Stock Common Stock Paid-In Capital in Excess of Par— Common Stock Paid-In Capital from Sale of Treasury Stock Retained Earnings Treasury Stock Total $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ c. Prepare a balance sheet in report form as of Dec 31, 20Y8. Equinox Products Inc. Balance Sheet Dec 31, 20Y8 Assets Current assets: $ $ Total current assets $ Property, plant, and equipment: $ $ $ Total property, plant, and equipment Intangible assets: Total assets $ Liabilities Current liabilities: $ Total current liabilities $ Long-term liabilities: $ Total liabilities $ Stockholders’ Equity Paid-in capital: $ $ $ Total paid-in capital $ Total stockholders’ equity Total liabilities and Stockholders’ Equity $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

a. Issued 15,000 shares of $20 par common stock at $30, receiving cash.

Descr	D	C

b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.

Descr	D	C

c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.

Descr	D	C

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. Journalize the common stock and the preferred stock entries separately.

Descr	D	C

e. Paid the cash dividends declared in (d).

Descr	D	C

f. Purchased 8,000 shares of treasury common stock at $33 per share.

Descr	D	C

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.

Descr	D	C

h. Paid the cash dividends to the preferred stockholders.

Descr	D	C

i. Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (f).

Descr	D	C

j. Recorded the payment of semiannual interest on the bonds issued in (c) and the amortization of the premium for 6 months. The amortization is determined using the straight-line method.

Descr	D	C

You must complete part 1 before part 2.

After all of the transactions for the year ended Dec 31, 20Y8, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data below were taken from the records of Equinox Products Inc. Unless otherwise stated, assume a Dec 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
Misc administrative expense		7,500
Misc 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), Jan 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 (Dec 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, Jan 1, 20Y8		0
Paid-in capital in excess of par—common stock, Jan 1, 20Y8		736,800
Paid-in capital in excess of par—preferred stock, Jan 1, 20Y8		70,000
Preferred 5% stock, $80 par (30,000 shares authorized; 16,000 shares issued), Jan 1, 20Y8		1,280,000
Premium on bonds payable		19,000
Prepaid expenses		27,400
Retained earnings, Jan 1, 20Y8		8,197,220
Store buildings and equipment		12,560,000
Treasury stock, Jan 1, 20Y8		0

a. Prepare a multiple-step income statement for the year ended Dec 31, 20Y8.

Equinox Products Inc. Income Statement For the Year Ended Dec 31, 20Y8
Sales			$

Gross profit			$
Operating expenses:
Selling expenses:
	$





		$
Administrative expenses:
	$




Total operating expenses
Operating income			$
Other revenue and expense:
		$

Income before income tax			$
Income tax
Net income			$

b. Prepare a statement of stockholders’ equity for the year ended Dec 31, 20Y8. Decreases in equity and purchase should be entered as negative amounts by using a minus sign. If your answer is zero, enter “0”.


Preferred Stock	Paid-In Capital in Excess of Par— Preferred Stock	Common Stock	Paid-In Capital in Excess of Par— Common Stock	Paid-In Capital from Sale of Treasury Stock	Retained Earnings	Treasury Stock	Total
$	$	$	$	$	$	$	$






$	$	$	$	$	$	$	$

c. Prepare a balance sheet in report form as of Dec 31, 20Y8.

Equinox Products Inc. Balance Sheet Dec 31, 20Y8
Assets
Current assets:
		$
	$





Total current assets			$
Property, plant, and equipment:
	$

		$
	$


Total property, plant, and equipment
Intangible assets:

Total assets			$

Liabilities
Current liabilities:
		$

Total current liabilities			$
Long-term liabilities:
		$

Total liabilities			$
Stockholders’ Equity
Paid-in capital:
	$

		$
	$



Total paid-in capital		$


Total stockholders’ equity
Total liabilities and Stockholders’ Equity			$

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