Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows: Record on journal page 10: 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 $1 stock at $100, receiving cash. May 1 Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. May 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 this transaction as two separate entries. May 26 Paid the cash dividends declared on May 16. June 1 Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150. June 8 Purchased 8,000 shares of treasury common stock at $33 per share. June 22 Purchased 40,000 shares of Pinkberry Co.’s common stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding. June 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 to the preferred stockholders. Aug. 27 Received $27,500 dividend from Pinkberry Co. investment in Jun. 22. Record on journal page 11: 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 a held-to-maturity investment. 7 Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8. 14 Received interest of $6,000 from the Solstice Corp. investment on Jun. 1. 29 Sold Solstice Corp. bonds with a face value of $40,020 for $45,000, realizing a gain of $4,980. 31 Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for 6 months. The amortization is determined using the straight-line method. Dec. 31 Accrued interest for 3 months on the Dream Inc. bonds purchased on Oct. 1. 31 Pinkberry Co. reported total earnings of $240,000. Equinox Products recorded its share of Pinkberry Co. net income using the equity method. 31 The Solstice Corp. bonds have a fair value of $253,630 on December 31, 20Y5. Valuation Allowance for Available-for-Sale Investments had a balance of zero on January 1, 20Y5. Required: 1. Journalize the selected transactions.

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows: Record on journal page 10: 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 $1 stock at $100, receiving cash. May 1 Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. May 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 this transaction as two separate entries. May 26 Paid the cash dividends declared on May 16. June 1 Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150. June 8 Purchased 8,000 shares of treasury common stock at $33 per share. June 22 Purchased 40,000 shares of Pinkberry Co.’s common stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding. June 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 to the preferred stockholders. Aug. 27 Received $27,500 dividend from Pinkberry Co. investment in Jun. 22. Record on journal page 11: 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 a held-to-maturity investment. 7 Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8. 14 Received interest of $6,000 from the Solstice Corp. investment on Jun. 1. 29 Sold Solstice Corp. bonds with a face value of $40,020 for $45,000, realizing a gain of $4,980. 31 Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for 6 months. The amortization is determined using the straight-line method. Dec. 31 Accrued interest for 3 months on the Dream Inc. bonds purchased on Oct. 1. 31 Pinkberry Co. reported total earnings of $240,000. Equinox Products recorded its share of Pinkberry Co. net income using the equity method. 31 The Solstice Corp. bonds have a fair value of $253,630 on December 31, 20Y5. Valuation Allowance for Available-for-Sale Investments had a balance of zero on January 1, 20Y5. Required: 1. Journalize the selected transactions.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows:

Record on journal page 10:

Jan.

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

Feb.

Issued 4,000 shares of $80 par preferred $1 stock at $100, receiving cash.

May

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

May 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 this transaction as two separate entries.

May 26

Paid the cash dividends declared on May 16.

June

Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150.

June 8

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

June 22

Purchased 40,000 shares of Pinkberry Co.’s common stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding.

June 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.

Paid the cash dividends to the preferred stockholders.

Aug.

Received $27,500 dividend from Pinkberry Co. investment in Jun. 22.

Record on journal page 11:

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 a held-to-maturity investment.
	7	Sold, at $38 per share, 2,600 shares of treasury common stock purchased on Jun. 8.
	14	Received interest of $6,000 from the Solstice Corp. investment on Jun. 1.
	29	Sold Solstice Corp. bonds with a face value of $40,020 for $45,000, realizing a gain of $4,980.
	31	Recorded the payment of semiannual interest on the bonds issued on May 1 and the amortization of the premium for 6 months. The amortization is determined using the straight-line method.
Dec.	31	Accrued interest for 3 months on the Dream Inc. bonds purchased on Oct. 1.
	31	Pinkberry Co. reported total earnings of $240,000. Equinox Products recorded its share of Pinkberry Co. net income using the equity method.
	31	The Solstice Corp. bonds have a fair value of $253,630 on December 31, 20Y5. Valuation Allowance for Available-for-Sale Investments had a balance of zero on January 1, 20Y5.

Required:
1.	Journalize the selected transactions.

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