Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows: Record on joumal page 10: 3 Issued 15.000 shares of $20 par common stook at $30, receiving cash. 15 Issued 4,00 shares of 580 par preferred $1 stock at $100. receiving cash. 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 Jan. Feb. May were held and 20,000 shares of preferred stock were outstanding. Journalize thia transaction as two separate entries. 28 Paid the cash dividends deciared on May 18. 1 Purchased 4% bonds issued by Solstice Corp. as an avaiable-for-sale investment for $300,150. 8 Purchased 8.000 shares of treasury common stock at $33 per share. Jun. 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. 30 Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record. 20,000 shares of preferred stook 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 jourmal page 11: Oct. 1 Purchased S0,000 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 heid-to-maturity investment. 7 Sold, at $38 per share. 2.600 shares of treasury common stock purchased on Jun. 8. 14 Received interest of 58,000 from the Solstice Corp. investment on Jun. 1.
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows: Record on joumal page 10: 3 Issued 15.000 shares of $20 par common stook at $30, receiving cash. 15 Issued 4,00 shares of 580 par preferred $1 stock at $100. receiving cash. 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 Jan. Feb. May were held and 20,000 shares of preferred stock were outstanding. Journalize thia transaction as two separate entries. 28 Paid the cash dividends deciared on May 18. 1 Purchased 4% bonds issued by Solstice Corp. as an avaiable-for-sale investment for $300,150. 8 Purchased 8.000 shares of treasury common stock at $33 per share. Jun. 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. 30 Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record. 20,000 shares of preferred stook 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 jourmal page 11: Oct. 1 Purchased S0,000 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 heid-to-maturity investment. 7 Sold, at $38 per share. 2.600 shares of treasury common stock purchased on Jun. 8. 14 Received interest of 58,000 from the Solstice Corp. investment on Jun. 1.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Instructions
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y5, were as follows:
Record on joumal 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.
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. Jourmalize this transaction as two
separate entries.
26
Paid the cash dividends declared on May 18.
Jun.
Purchased 4% bonds issued by Solstice Corp. as an available-for-sale investment for $300,150.
8
Purchased 8.000 shares of treasury common stock at $33 per share.
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.
Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20.000
30
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 joumal page 11:
Oct.
1
Purchased $80,000 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.
Transcribed Image Text:Instructions
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.
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.
Received $27,500 dividend from Pinkberry Co. investment in Jun. 22.
27
Record on joumal 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 eamings 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. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumais do not use lines
for journal explanations. Every line on a journal psge is used for debit or credit entries. CNOW journals will automatically indent a credit entry
when a credit amount is entered.
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