Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016,...
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Accounting
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows:
1. Journalize the selected transactions.
If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Issued 15,000 shares of $20 par common stock at $30, receiving cash.
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b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash.
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c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually.
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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.
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Common stock
Preferred stock
e. Paid the cash dividends declared in (d).
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f. Purchased 7,500 shares of Solstice Corp. at $40 per share, plus a $150 brokerage commission. The investment is classified as an available-for-sale investment.
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g. Purchased 8,000 shares of treasury common stock at $33 per share.
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h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment.
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i. 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.
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j. Paid the cash dividends to the preferred stockholders.
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k. Received $27,500 dividend from Pinkberry Co. investment in (h).
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l. 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 classified as a held-to-maturity long-term investment.
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