Selected transactions completed by Primo Discount Corporationduring the current fiscal year are as follows:
Jan. 9 Split the common stock 3 for 1 andreduced the par from $75 to $25 per share. After the split, therewere 1,092,000 common shares outstanding. Feb. 28 Purchased 39,500 shares of thecorporationâs own common stock at $29, recording the stock atcost. May 1 Declared semiannual dividends of$0.60 on 74,300 shares of preferred stock and $0.14 on the commonstock to stockholders of record on June 1, payable on July 10. Jul. 10 Paid the cash dividends. Sep. 7 Sold 28,500 shares of treasurystock at $33, receiving cash. Oct. 1 Declared semiannual dividends of$0.60 on the preferred stock and $0.14 on the common stock (beforethe stock dividend). In addition, a 5% common stock dividend wasdeclared on the common stock outstanding. The fair market value ofthe common stock is estimated at $38. Dec. 1 Paid the cash dividends and issuedthe certificates for the common stock dividend.
Journalize the transactions. If no entry is required, simplyskip to the next transaction. Refer to the Chart of Accounts forexact wording of account titles.
CHARTOF ACCOUNTS PrimoDiscount Corporation General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 AccumulatedDepreciation-Equipment
LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable
EQUITY 311 Common Stock 312 Paid-In Capital in Excess ofPar-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess ofPar-Preferred Stock 331 Paid-In Capital from Sale ofTreasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary
Journalize the transactions. If no entry is required, simplyskip to the next transaction. Refer to the Chart of Accounts forexact wording of account titles.
PAGE 10
JOURNAL
DATE DESCRIPTION POST.REF. DEBIT CREDIT 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
REVENUE 410 Sales 610 Interest Revenue
Selected transactions completed by Primo Discount Corporationduring the current fiscal year are as follows:
| Jan. | 9 | Split the common stock 3 for 1 andreduced the par from $75 to $25 per share. After the split, therewere 1,092,000 common shares outstanding. |
| Feb. | 28 | Purchased 39,500 shares of thecorporationâs own common stock at $29, recording the stock atcost. |
| May | 1 | Declared semiannual dividends of$0.60 on 74,300 shares of preferred stock and $0.14 on the commonstock to stockholders of record on June 1, payable on July 10. |
| Jul. | 10 | Paid the cash dividends. |
| Sep. | 7 | Sold 28,500 shares of treasurystock at $33, receiving cash. |
| Oct. | 1 | Declared semiannual dividends of$0.60 on the preferred stock and $0.14 on the common stock (beforethe stock dividend). In addition, a 5% common stock dividend wasdeclared on the common stock outstanding. The fair market value ofthe common stock is estimated at $38. |
| Dec. | 1 | Paid the cash dividends and issuedthe certificates for the common stock dividend. |
Journalize the transactions. If no entry is required, simplyskip to the next transaction. Refer to the Chart of Accounts forexact wording of account titles.
| CHARTOF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PrimoDiscount Corporation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related questions
Selected transactions completed by Canyon Ferry BoatingCorporation during the current fiscal year are as follows:
| Jan. | 8 | Split the common stock 2 for 1 andreduced the par from $80 to $40 per share. After the split, therewere 123,000 common shares outstanding. |
| Apr. | 30 | Declared semiannual dividends of$0.80 on 16,500 shares of preferred stock and $0.27 on the commonstock payable on July 1. |
| Jul. | 1 | Paid the cash dividends. |
| Oct. | 31 | Declared semiannual dividends of$0.80 on the preferred stock and $0.15 on the common stock (beforethe stock dividend). In addition, a 3% common stock dividend wasdeclared on the common stock outstanding. The fair market value ofthe common stock is estimated at $51. |
| Dec. | 31 | Paid the cash dividends and issuedthe certificates for the common stock dividend. |
Journalize the transactions. If no entry is required, simplyskip to the next transaction. Refer to the Chart of Accounts forexact wording of account titles.
Journalize the transactions. If no entry is required, simplyskip to the next transaction. Refer to the Chart of Accounts forexact wording of account titles. Enter the October 31 and December31 transactions as two separate journal entries on each date.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
| DATE | DESCRIPTION | POST.REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
|---|---|---|---|---|---|---|---|---|
1 | ||||||||
2 | ||||||||
3 | ||||||||
4 | ||||||||
5 | ||||||||
6 | ||||||||
7 | ||||||||
8 | ||||||||
9 | ||||||||
10 | ||||||||
11 | ||||||||
12 | ||||||||
13 |
