Question

Instructions Selected transitions completed by Equinox Products Inc. during the fiscal year ended December 31, Year 1, were as follows: Record on oumal page 10: Jan. Feb. May 3 15 1 18 Issued 15,000 shares of $20 par common stock at $30, receiving cash. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually 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. Journalize this transaction as two separate entries 26 1 Jun B 22 Paid the cash dividends declared on May 16. 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 Purchased 8,000 shares of treasury common stock at $33 per share. 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 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. Check My Work 3 more Check My Work USOS Romaining

journal has a total of 47 entries

Answer 1

Dear Student , Multiple JE has been posted below . please check line by line and please let me know for any further clarification . Thank You !!

	Journal Entries
Date	Details		Debit($)	Credit($)
Jan 3	Cash	15000*$30	4,50,000
	Share capital	15000*$20		3,00,000
	Share Premium			1,50,000
	( Excess paid in capital)
Feb 15	Cash	4000*$100	4,00,000
	5% preferred Stock	4000*$80		3,20,000
	Share Premium			80,000
	( Excess paid in capital)
May 1	Cash	@104 rate Bond issued	5,20,000
	5% Bond - 10 year			5,00,000
	Premium on Bond			20,000
May 16	Cash dividend	$0.50 * 100000 Shares	50,000
	Cash dividend Payable common Stock			50,000
	Cash dividend	$1/share * 20000 Shares	20,000
	Cash dividend Payable Preferred Stock			20,000
May 26	dividend Payable ( Common+ preferred Stock)	50000+20000	70,000
	Cash			70,000
Jun 1	Investment Solistic Corp	7500 Shares *$40/ Share	3,00,000
	Cash			3,00,000
Jun 8	Treasury Stock	8000Share *$33	2,64,000
	Cash			2,64,000
Jun 22	Investment in Pinkberry Co	40000 Shares *$24/ Share	9,60,000
	Cash			9,60,000
Jun 30	Dividend	20000 Share *$1/Share	20,000
	Dividend Payable			20,000
Jul 11	Dividend Payable		20,000
	Cash			20,000
Aug 27	Cash		27,500
	Investment in Pinkberry Co			27,500
Oct 1	Investment Dream Inc-5% Bond		90,000
	Accrued Interest-Receivable		375
	Cash			90,375
Oct 7	Cash	2600 shares * $38	98,800
	Treasury Stock	2600 shares * $33		85,800
	Share Premium	2600 shares * $5		13,000
	( Excess paid in capital)
Oct 14	Cash	7500 shares * $0.60	4,500
	Divided Income			4,500
Oct 29	Cash	1000 Shares*$45	45,000
	Gain on Sale of Investement( Balancing Number)			5,000
	Investment Solistic Corp	1000 Shares*$40		40,000
Oct 31	In line with Bond Entry - May 1
	Premium on Bond	$20000/10*6/12)	1,000
	Interest Expenses	Balancing Number)	11,500
	Cash	$500000*5%*6/12)		12,500
Dec 31	Entry in relates to Oct 1
	Interest Receivable	$90000*5%*6/12)-$375	750
	Interest Revenue			750
Dec 31	Investment in Pinkberry Co	($240000*40000/125000)	76,800
	Income from Pinkberry Co			76,800
	In line with Jun 22 entry