1)Prepare journal entries for each transaction 2)Prepare Trial Balance 3)Prepare
ID: 2427321 • Letter: 1
Question
1)Prepare journal entries for each transaction
2)Prepare Trial Balance
3)Prepare Balance Sheet
4)Record closing entry for dividends.
Thanks for the help!
American Laser, Inc., reported the following account balances on January 1 Accounts Receivable Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Bonds Pay able Buildings Cash Common Stock, 10,000 shares of $1 par Notes Payable (long-term) Retained Earnings Treasury Stock $ 5,000 30,000 90,000 2,000 247,000 10,000 10,000 10,000 120,000 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. 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 General Journal Trial Balance Balance Sheet Requirement General Ledger General Journal tab Prepare the journal entries to record each transaction. Review the accounts as shown in the General Ledger and Trial Balance tabs General Ledger tab Each journal entry is posted automatically to the general ledger. Use the drop-down button to view the unadjusted adjusted, or post-closing balances in the General Ledger Trial Balance tab - You may view either the unadjusted, adjusted, or post-closing trial balance by choosing from the drop-down Balance Sheet tab Prepare the noncurrent liabilities and stockholders' equity sections of the balance sheet at December 31. At the end of the year, the adjusted net income was $20,000 General Journal tab - After preparing the financial statements, record the closing entry for DividendsExplanation / Answer
Jouranl entries
To Divdend payable
(10,000 +5,000-3,000 +1,200 = 13,200shares)
trial balance
Balance sheet
Cash 156,600
Account receivable 4,500
less:Allowance 1,500 3,000
Building 247,000
less:dep 30,000 217,000
total Assets $376,600
Liabiliites and stockholder's Equity
Notes payable 10,000
dividends payable 13,200
Bonds apaybel 100,000
Add:premium 1,000 101,000
Common stock 15,000
Addittional paid in captial135,000
paid in excess - treasury 154,00
retained earnings 106,800
total 272,200
less:treasury stock 19,800 252,400
total $376,600
Date Description Debit Credit Jan 15 Cash $50,000 To common stock $5,000 to Addittional paid in capital 45,000 Feb15 Treasury stock $33,000 To Cash $33,000 March 15 Cash 24,000 To Treasury stock (600*11) 6,600 To paid in excess - Treasury stock 17,400 May 15 Cash 4,600 Paid in excess- Treasury stock 2,000 To Treasury stock 6,600 Sept 15 Dividend 13,200To Divdend payable
(10,000 +5,000-3,000 +1,200 = 13,200shares)
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