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General Journal entries for these events:

a. Dividends declared and paid totaled $650.

b. 300 shares of common stock (at par) were issued for cash.

c. On July 1, 2016, convertible preferred stock that had originally been issued at par value were converted into 500 shares of common stock. The book value method was used to account for the conversion.

d. The long-term note payable was paid by issuing 250 shares of common stock at the beginning of the fiscal year.

e. Short-term marketable securities were purchased at a cost of $1,300. The portfolio was increased by $300 to a $14,800 fair value at year-end by adjusting the related allowance account.

f. During the year, a 30% interest in Ricochet Co. was purchased as an investment for $9,500. Ricochet reported $20,000 in net income for the year and paid dividends of $2,000 to Smart.

g. $5,000 of accounts receivable were written off as uncollectible during the year.

h. Smarts inventory consists of Construction-in-Process in excess of the Billings on Construction-in-Process account balance.

i. A building was destroyed by fire during the year and insurance proceeds of $26,000 were collected.

j. The 12% bonds payable were issued on February 28, 2017, at 97. They mature on February 28, 2027. The company uses the straight-line method to amortize bond premiums and discounts.

k. Smart recorded pension expense of $350,000 for the year.

l. A lease agreement was signed on July 1st, 2016 for the use of equipment worth $20,000. The company determined that the transaction should be recorded as a capital lease.

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