Question

Instructions: You must turn in the work performed on the sheets printed with this page. This WILL NOT BE ACCEPTED ON PLAIN PAPER • Write the journal entries (on the following General Journal page) required for each of the events described below. Write the entries in the order described below (1-88). • Use ONLY the accounts listed on the trial balance for your journal entries. • Post the transactions to individual T-accounts and prepare an adjusted trial balance for your assigned company from page one as of December 31, 2017 1. The company purchased a building December 1, 2017 with a LT Mortgage Payable of $300,000 a 8% interest. (Record the purchase of the building.) 2. The company issued 1,000 shares of Common Stock for $6,000 on December 25, 2017 3. On December 29, 2017 the company declared a cash dividend of $3.00 per share for common stock on the shares issued and declared (including the additional 1,000 shares issued on December 25) 4. The terms of the LT mortgage payable from #1 above require the company to make monthly installment payments over the term of the loan. Each payment consists of interest on the unpaid balance of the loan and a reduction of loan principal. Record the first monthly payment of $3,800 on the LT Mortgage Payable on December 31, 2017 5. The company last paid interest on the ST note payable on November 1, 2017. Record the accrued Interest expense for the last 2 months of 2017. The annual interest rate is 8. Round to nearest whole dollar 6. The Bonds Payable and related Premium amounts on the Nov. trial balance relate to the Jan 1, 2017 Issuance of the following bonds: On Jan. 1, 2017, the company issued 10%, 10 year bonds when the market rate for similar investments was 8%. The company pays interest each year on January 1". On Dec 31, 2017, use the effective interest method of amortizing the premium on bonds payable to accrue the interest expense for 2017. Round your interest expense calculation to the nearest whole dollar 7. The Unearned Revenue amount on the Nov. trial balance relates to amounts that the company previously collected in cash for sales that were to be completed in the future. The company completed some of these sales during December and now owes only $10,000 of that unearned revenue. Record the necessary adjustment for December 31, 2017. Per 113019: Uncanned Bevcave $12.000 12,000 - 10.000 $2.000 Sala Rom 8. On December 31, 2017, the company purchased 50 shares of its own Preferred Stock for Treasury Stock for $11 per share. $1150 Shares = $550 1150 YOU MUST INCLUDE ALL PAGES OF THIS DOCUMENT IN YOUR ASSIGNMENT SUBMISSION SUBMIT AS ONE PDF DOCUMENT

questions 3 to end

Answer 1

Answer:

General Journal Account Titles Building LT Mortgage Payable Date Dec.01 Credit ($) Debit ($) 300,000 300,000 Dec.25 6,000 Cash Common stock-$1.75 par Paid in capital in excess of par-CS 1,750 4,250 Dec.29 183,000 Dividends ((105,000 / $1.75)+1,000]*$3.00 Dividends payable 183,000 Dec.31 LT Mortage payable Interest expense (300,000*8%/12) Cash 1,800 2,000 3,800 Dec.31 400 Interest expense (30,000*8%*2/12) Interest payable 400 Dec.31 interest ex Interest expense (150,000+16,840)*8% Premium on Bonds payable Interest payable (150,000*10%) 13,347 1,653 15,000 Dec.31 2,000 Unearned Revenue Sales Revenue 2,000 Dec.31 550 Treasury stock Cash 550

Adjusted Trial Balance
Account Name	Debit	Credit
Cash	$      113,650
Accounts Receivable	127,000
Allowance for Doubtful Accounts		$           1,000
Short term note receivable	50,000
Supplies	55,000
Inventory	62,000
Equipment	75,000
Building	300,000
Accumulated Depreciation		32,000
Copyright	94,000
Accounts Payable		12,000
Dividends Payable		183,000
Interest Payable		15,400
Unearned revenue		10,000
ST Note Payable		30,000
LT Mortgage Payable		298,200
Bonds Payable		150,000
Premium on Bonds Payable		15,187
Common stock-$1.75 par		106,750
Paid in capital in excess of Par -CS		90,250
Preferred Stock - $5 par		1,000
Paid in capital in excess of Par -PS		50,000
Treasury Stock	550
Retained Earnings		3,500
Dividends	185,000
Sales Revenue		492,160
Sales Returns & Allowances	7,000
Sales Discounts	3,000
Cost of Goods Sold	46,000
Bad Debts Expense	5,000
Depreciation Expense	16,000
Wages Expense	160,000
Rent Expense	98,000
Insurance Expense	25,000
Supplies Expense	16,000
Interest Revenue		1,000
Interest Expense	22,247
Gain on Sale of Equipment		15,000
Income Tax Expense	46,000
Total	$   1,506,447	$   1,506,447