Question

Question 9 (5 points) On August 1, 2018, Dorchester Company entered into a capital lease, and correctly recorded the leased asset, and related obligation at $100,000. The annual interest rate implicit in the lease was 9%, and the first lease payment of $1,600 is due at the end of each month of the lease. Use this information to prepare the General Journal entry (without explanation) for the August 31, 2018 monthly lease payment. If no entry is required then write "No Entry Required." (Round your answer to the nearest whole dollar.) C - Format B I - General Journal: Date Debit Credit Date Accounts Question 10 (5 points) On January 2, 2019, Frederick Corporation issued 18,000 shares of $10 par value common stock for $13 per share. On April 1, 2019, Alpha reacquired 1,500 of these shares when they were trading $16 per share. On August 1, 2019 Frederick reissued 800 shares of treasury stock at the going market rate of $19 per share. Use this information to prepare the General Journal entry (without explanation for the August 1 transaction.

Answer 1

Q-9			$	$
	Date	Accounts	Debit	Credit
1	August 31 2018	Interest A/c	750
		To Lease obligation		750
2	August 31 2018	Lease obligation	1600
		To Bank		1600
3	August 31 2018	Profit & Loss A/c	750
		To Interest		750
Q-10			$	$
	Date	Accounts	Debit	Credit
	April 1 2019	Treasury stock (1500*10)	15000
		Addition paid in capital(1500*3)	4500
		Retained earnings(1500*3)	4500
		To cash		24000
	Aug 1 2019	Cash(800*19)	15200
		To   Treasury stock(800*10)		8000
		To additional paid in capital(800*3)		2400
		To retained earnings(800*3)		2400
		To reserve & surplus(800*3)		2400