Comprehensive Problem 4 Part 1: Selected transactions completed by Equinox Produ

Question

Comprehensive Problem 4
  Part 1:

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2014, were as follows:

1.  Journalize the selected transactions.

If no entry is required, select "No entry required" from the dropdown and leave the amount boxes blank. For a compound transaction, if an amount box does not require an entry, leave it blank.

m.  Sold, at $38 per share, 2,600 shares of treasury common stock purchased in (g).

n.  Received a dividend of $0.60 per share from the Solstice Corp. investment in (f).

Explanation / Answer

m.

Description Debit Credit

Cash Dr $98,800

Treasury Stock Cr $85,800

Additional paid-in capital Cr 13,000

(Cash 38*2600 = $98,800. Treasury Stock 33*2600 = 85800)

n. Received a dividend of $0.60 per share from the Solstice Corp. investment in (f). 7500

Description Debit Credit

Cash Dr 4500

Dividend Income Cr 4500

(7500 Shares *0.60 = 4500)

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