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Item 2

Item 2 3.75 points

Victoria, Inc., is one of the world’s leading manufacturers of athletic shoes and sports apparel. The following activities occurred during a recent year. The amounts are rounded to millions, except for par value.

1. Purchased additional buildings for $182 and equipment for $280; paid $404 in cash and signed a long-term note for the rest.
2. Issued 110 shares of $2 par value common stock for $350 cash.
3. Declared $135 in dividends to be paid in the following year.
4. Purchased additional short-term investments for $7,616 cash.
5. Several Victoria, Inc., investors sold their own stock to other investors on the stock exchange for $84.
6. Sold $4,213 in short-term investments for $4,213 in cash.

Required:

Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions.)

Answer 1

Journal entries

Transaction	General journal	Debit	Credit
1	Building	182
	Equipment	280
	Cash		404
	Notes payable		58
2	Cash	350
	Common Stock (110*2)		220
	Paid in capital in excess of par value-Common Stock		130
3	Cash dividend	135
	Dividend payable		135
4	Short term investment	7616
	Cash		7616
5	Cash	84
	Common Stock		84
6	Cash	4213
	Short term investment		4213