Selected transactions completed by Primo Discount Corporationduring the current fiscal year are as follows:
Jan. 9 Split the common stockThe stock outstanding when a corporation has issued only oneclass of stock.
3 for 1 and reduced the parA dollar amount assigned to each share of stock.
from $75 to $25 per share. After the split, there were 1,201,500common shares outstanding. Feb. 28 Purchased 40,200 shares of the corporationâs own common stockat $27, recording the stockShares of ownership of a corporation.
at cost. May 1 Declared semiannual dividendsDistribution of a corporationâs earnings to stockholders.
of $0.70 on 70,500 shares of preferred stockA class of stock with preferential rights over common stock.
and $0.14 on the common stock to stockholdersThe owners of a corporation.
of record on June 1, payable on July 10. Jul. 10 Paid the cash dividendsA cash distribution of earnings by a corporation to itsshareholders.
. Sep. 7 Sold 31,600 shares of treasury stockStock that a corporation has once issued and thenreacquires.
at $33, receiving cash. Oct. 1 Declared semiannual dividends of $0.70 on the preferred stockand $0.14 on the common stock (before the stock dividend). Inaddition, a 2% common stock dividendA distribution of shares of stock to its stockholders.
was declared on the common stock outstanding. The fair market valueof the common stock is estimated at $38. Dec. 1 Paid the cash dividends and issued the certificates for thecommon stock dividend.
Journalize the transactions. If no entry is required, simplyskip to the next transaction. Refer to the Chart of Accounts forexact wording of account titles.
CHART OF ACCOUNTS Primo Discount Corporation General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment
LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable
EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary Journalize the transactions. If no entry is required, simplyskip to the next transaction. Refer to the Chart of Accounts forexact wording of account titles.
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JOURNAL
DATE DESCRIPTION POST. REF. DEBIT CREDIT 1
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REVENUE 410 Sales 610 Interest Revenue
EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 Interest Expense
Selected transactions completed by Primo Discount Corporationduring the current fiscal year are as follows:
Jan. | 9 | Split the common stock The stock outstanding when a corporation has issued only oneclass of stock. 3 for 1 and reduced the parA dollar amount assigned to each share of stock. from $75 to $25 per share. After the split, there were 1,201,500common shares outstanding. |
Feb. | 28 | Purchased 40,200 shares of the corporationâs own common stockat $27, recording the stock Shares of ownership of a corporation. at cost. |
May | 1 | Declared semiannual dividends Distribution of a corporationâs earnings to stockholders. of $0.70 on 70,500 shares of preferred stockA class of stock with preferential rights over common stock. and $0.14 on the common stock to stockholdersThe owners of a corporation. of record on June 1, payable on July 10. |
Jul. | 10 | Paid the cash dividends A cash distribution of earnings by a corporation to itsshareholders. . |
Sep. | 7 | Sold 31,600 shares of treasury stock Stock that a corporation has once issued and thenreacquires. at $33, receiving cash. |
Oct. | 1 | Declared semiannual dividends of $0.70 on the preferred stockand $0.14 on the common stock (before the stock dividend). Inaddition, a 2% common stock dividend A distribution of shares of stock to its stockholders. was declared on the common stock outstanding. The fair market valueof the common stock is estimated at $38. |
Dec. | 1 | Paid the cash dividends and issued the certificates for thecommon stock dividend. |
Journalize the transactions. If no entry is required, simplyskip to the next transaction. Refer to the Chart of Accounts forexact wording of account titles.
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