Question

American Laser, Inc., reported the following account balances on January 1. Accounts Receivable $ 5,000 Accumulated Depreciation 30,000 Additional Paid-in Capital 90,000 Allowance for Doubtful Accounts 2,000 Bonds Payable 0 Buildings 247,000 Cash 10,000 Common Stock, 10,000 shares of $1 par 10,000 Notes Payable (long-term) 10,000 Retained Earnings 120,000 Treasury Stock 0 The company entered into the following transactions during the year. Jan. 15 Issued 5,000 shares of $1 par common stock for $50,000 cash. Feb. 15 Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. Mar. 15 Reissued 2,000 shares of treasury stock for $24,000 cash. Aug. 15 Reissued 600 shares of treasury stock for $4,600 cash. Sept. 15 Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Oct. 1 Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. Oct. 3 Wrote off a $500 balance due from a customer who went bankrupt.

Prepare the journal entries to record each transaction. Review the accounts as shown in the General Ledger and Trial Balance tabs. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

1

Issued 5,000 shares of $1 par common stock for $50,000 cash. Record the transaction.

2

Reacquired 3,000 shares of $1 par common stock into treasury for $33,000 cash. Record the transaction.

3

Reissued 2,000 shares of treasury stock for $24,000 cash. Record the transaction.

4

Reissued 600 shares of treasury stock for $4,600 cash. Record the transaction.

5

Declared (but did not yet pay) a $1 cash dividend on each outstanding share of common stock. Record the transaction.

6

Issued 100, 10-year, $1,000 bonds, at a quoted bond price of 101. Record the transaction.

7

Wrote off a $500 balance due from a customer who went bankrupt. Record the transaction.

8

Prepare the closing entry for Dividends. Record the transaction.

Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted, adjusted, or post-closing balances.

UnadjustedPost-closing Unadjusted

Unadjusted

Post-closing

Dates:Jan 01

Jan 01

Jan 31

Jan 01

Jan 31

Jan 15

Jan 31

Feb 15

Feb 28

Mar 15

Mar 31

Aug 15

Aug 31

Sep 15

Sep 30

Oct 01

Oct 03

Oct 31

to:Oct 03

Jan 01

Jan 31

Jan 01

Jan 31

Jan 15

Jan 31

Feb 15

Feb 28

Mar 15

Mar 31

Aug 15

Aug 31

Sep 15

Sep 30

Oct 01

Oct 03

Oct 31

General Ledger Account

Cash
No.	Date	Debit	Credit	Balance
	Dec 31			10,000

Accounts Receivable
No.	Date	Debit	Credit	Balance
	Dec 31			5,000

Allowance for Doubtful Accounts
No.	Date	Debit	Credit	Balance
	Dec 31			2,000

Buildings
No.	Date	Debit	Credit	Balance
	Dec 31			247,000

Accumulated Depreciation—Buildings
No.	Date	Debit	Credit	Balance
	Dec 31			30,000

Notes Payable (long-term)
No.	Date	Debit	Credit	Balance
	Dec 31			10,000

Common Stock
No.	Date	Debit	Credit	Balance
	Dec 31			10,000

Additional Paid-In Capital—Common Stock
No.	Date	Debit	Credit	Balance
	Dec 31			90,000

Retained Earnings
No.	Date	Debit	Credit	Balance
	Dec 31			120,000