Selected transactions completed by Equinox Products Inc. during the fiscal year

Question

Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, 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. a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. Description Debit Credit Cash v Common Stock Paid-In Capital in Excess of Par-Common Stock 450,000 300,000 150,000 b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. Description Debit Credit Cash v Preferred Stock Pald-In Capital in Excess of Par-Preferred Stock 400,000 320,000 80,000

Explanation / Answer

Journal Entries (Amounts in $)

No. Description Debit Credit f. Treasury Stock (8,000 shares*$33 per share) 264,000 Cash 264,000 g. Cash Dividends (20,000 preferred shares*$1.00) 20,000 Cash Dividends Payable 20,000 h. Cash Dividends Payable 20,000 Cash 20,000 i. Cash (2,600 shares*$38 per share) 98,800 Treasury Stock (2,600 shares*$33 per share cost) 85,800 Paid-in Capital from Sale of Treasury Shares (Bal. fig) (98,800-85,800) 13,000 j. Interest Expense (12,500-1,000) 11,500 Premium on Bonds Payable (20,000/20 semi annual periods) 1,000 Cash ($500,000*5%*6/12) 12,500

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