1).Write the Trial Balance Journal Entries Date General Journal Debit Credit Jan
ID: 2584688 • Letter: 1
Question
1).Write the Trial Balance
Journal Entries
Date
General Journal
Debit
Credit
Jan.1
Cash (16,000 Shares x $18)
$288,000
Common Stock (16,000 Shares x Par $5)
$80,000
Paid in Capital in Excess of Par - Common Stock (Bal.Fig.)
$208,000
Jan.1
Cash (7200 Shares x $42)
$302,400
Preferred Stock (7200 Shares x Par $40)
$288,000
Paid in Capital in Excess of Par - Preferred Stock (Bal.Fig.)
$14,400
Jan.31
Prepaid Insurance
$34,080
Cash
$34,080
Feb.1
Equipment
$290,000
Cash
$50,000
Notes Payable
$50,000
Common Stock (9500 Shares x Par $5)
$47,500
Paid in Capital in Excess of Par - Common Stock (Bal.Fig.)
$142,500
May.1
Treasury Stock (1200 Shares x $22)
$26,400
Cash
$26,400
June.1
Retained Earnings (7200*$40*5%)
$14,400
Preferred Stock Dividend Payable
$14,400
June.30
Preferred Stock Dividend Payable
$14,400
Cash
$14,400
July.1
Cash
$1,092,880
Bonds Payable (at face value)
$1,000,000
Premium on Bonds Payable (Bal. figure)
$92,880
July.30
Notes Payable
$50,000
Interest Expense (50,000*5%*180/360)
$1,250
Cash
$51,250
Aug.1
Cash (450 Shares x $26)
$11,700
Treasury Stock (450 Shares x Cost $22)
$9,900
Paid in Capital from Treasury Stock (Bal. figure)
$1,800
Oct.1
Equity Investment - Precision Corporation (30000 Shares x $5.10)
$153,000
Commission Expense
$125
Cash
$153,125
Oct.16
Cash (250 Shares x $20)
$5,000
Retained Earnings (Bal. figure)
$500
Treasury Stock (250 Shares x Cost $22)
$5,500
Nov.1
Cash
$36,000
Notes Payable
$36,000
Dec.15
Retained Earnings
$26,900
Preferred Stock Dividend (7200*$40*5%)
$14,400
Common Stock Dividend (0.50*(16000+9500-1200+450+250)
$12,500
Dec.30
No Entry on record date
Dec.31
Accounts Receivable
$1,475,000
Cash
$500,000
Sales Revenue
$1,975,000
Dec.31
Rent
$170,000
Utilities
$13,200
Salaries
$760,000
Payroll tax expense
$45,600
Advertising
$120,000
Medican Insurance
$32,000
Commissions
$63,000
Legal and accounting
$18,000
Miscellaneous
$8,400
Cash
$1,200,200
Accounts Payable
$30,000
Dec.31
Interest Expense (Bal figure)
$34,840
Premium on Bonds Payable (92,880/18)
$5,160
Cash Interest Paid (Face Value 1000,000*8%*1/2 semi annual)
$40,000
Dec.31
Cash
$3,000
Equity Investment - Precision Corporation (30,000 Shares x $0.10)
$3,000
Dec.31
Equity Investment - Precision Corporation (25,000*30%)
$7,500
Equity Income - Precision Corporation
$7,500
Date
General Journal
Debit
Credit
Jan.1
Cash (16,000 Shares x $18)
$288,000
Common Stock (16,000 Shares x Par $5)
$80,000
Paid in Capital in Excess of Par - Common Stock (Bal.Fig.)
$208,000
Jan.1
Cash (7200 Shares x $42)
$302,400
Preferred Stock (7200 Shares x Par $40)
$288,000
Paid in Capital in Excess of Par - Preferred Stock (Bal.Fig.)
$14,400
Jan.31
Prepaid Insurance
$34,080
Cash
$34,080
Feb.1
Equipment
$290,000
Cash
$50,000
Notes Payable
$50,000
Common Stock (9500 Shares x Par $5)
$47,500
Paid in Capital in Excess of Par - Common Stock (Bal.Fig.)
$142,500
May.1
Treasury Stock (1200 Shares x $22)
$26,400
Cash
$26,400
June.1
Retained Earnings (7200*$40*5%)
$14,400
Preferred Stock Dividend Payable
$14,400
June.30
Preferred Stock Dividend Payable
$14,400
Cash
$14,400
July.1
Cash
$1,092,880
Bonds Payable (at face value)
$1,000,000
Premium on Bonds Payable (Bal. figure)
$92,880
July.30
Notes Payable
$50,000
Interest Expense (50,000*5%*180/360)
$1,250
Cash
$51,250
Aug.1
Cash (450 Shares x $26)
$11,700
Treasury Stock (450 Shares x Cost $22)
$9,900
Paid in Capital from Treasury Stock (Bal. figure)
$1,800
Oct.1
Equity Investment - Precision Corporation (30000 Shares x $5.10)
$153,000
Commission Expense
$125
Cash
$153,125
Oct.16
Cash (250 Shares x $20)
$5,000
Retained Earnings (Bal. figure)
$500
Treasury Stock (250 Shares x Cost $22)
$5,500
Nov.1
Cash
$36,000
Notes Payable
$36,000
Dec.15
Retained Earnings
$26,900
Preferred Stock Dividend (7200*$40*5%)
$14,400
Common Stock Dividend (0.50*(16000+9500-1200+450+250)
$12,500
Dec.30
No Entry on record date
Dec.31
Accounts Receivable
$1,475,000
Cash
$500,000
Sales Revenue
$1,975,000
Dec.31
Rent
$170,000
Utilities
$13,200
Salaries
$760,000
Payroll tax expense
$45,600
Advertising
$120,000
Medican Insurance
$32,000
Commissions
$63,000
Legal and accounting
$18,000
Miscellaneous
$8,400
Cash
$1,200,200
Accounts Payable
$30,000
Dec.31
Interest Expense (Bal figure)
$34,840
Premium on Bonds Payable (92,880/18)
$5,160
Cash Interest Paid (Face Value 1000,000*8%*1/2 semi annual)
$40,000
Dec.31
Cash
$3,000
Equity Investment - Precision Corporation (30,000 Shares x $0.10)
$3,000
Dec.31
Equity Investment - Precision Corporation (25,000*30%)
$7,500
Equity Income - Precision Corporation
$7,500
Explanation / Answer
Trial balance:
Account Debit Credit Cash 669,525 Accounts receivable 1,475,000 prepaid insurance 34,080 Equity investment- Precision corporation 157,500 Equipment 290,000 Common stock 127,500 Paid in capital in excess of par - common stock 350,500 Preferred stock 288,000 Paid in capital in excess of par - preferred stock 14,400 Notes payable 36,000 Treasury stock 11,000 Retained earnings 41,800 Bond payable 1,000,000 Accounts payable 30,000 Premium on bonds payable 87,720 Paid in capital from treasury stock 1,800 Preferred stock dividend 14,400 Common stock dividend 12,500 Sales revenue 1,975,000 Equity income- precision corporation 7,500 Rent expense 170,000 Interest expense 36,090 Utilities expense 13,200 Salaries expense 760,000 Payroll tax expnese 45,600 Advertising 120,000 Medican insurance 32,000 Commissions 63,000 Legal and accounting 18,000 Commission expense 125 Miscellaneous 8,400 Total 3,945,320 3,945,320Related Questions
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