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For this assignment, provide the general journal e...




For this assignment, provide the general journal entries to record the necessary information based on each scenario below. You may use a word processing or electronic spreadsheet program to record your answers. In addition, use the following account titles for the transactions: Retained earnings, Dividends payable, Cash, Bonds payable, Interest expense, Interest payable, Paid-in capital, Common Stock, and Preferred Stock. ? Scenario 1: On September 15, 2010, the board of directors of Federated Corporation declared a cash dividend of $1 per share on its 800,000 outstanding shares of common stock. The dividend is payable on October 12 to the stockholders of record on September 30. Give the journal entries necessary on September 15, September 30, and October 12, 2010. ? Scenario 2: North Lake Corporation had 200,000 shares of $10 par value common stock outstanding, on December 1, 2010. The directors voted to split the stock on a 2-for-1 basis, issuing two new shares to stockholders for every one share presently owned. The estimated market value of the new shares will be $14.50. ? Scenario 3: Crockett Corporation issued $200,000 of its 10 percent bonds payable on April 1, 2030. The bonds were issued at face value. Interest is payable semi-annually, on October 1 and April 1. Give the journal entries to issue the bonds and pay each of the first two interest payments to bondholders ? Scenario 4: Beasley Corporation issued 1,000 shares of its $10 par value common stock for cash at $11 per share. Create an entry to reflect the receipt of cash in exchange for the stock sold in the scenario ? Scenario 5: Young Corporation issued 2,000 shares of $25 par value common stock and 300 shares of 13%, $50 par value preferred stock for cash at par value. This scenario is very similar to Scenario 4 except that the company is now selling both common and preferred stock, and the sales are both at par value. You may compose two separate entries or one combined entry to reflect the receipt of cash in exchange for the stock sold in the scenario. Use the following account titles for the transactions: Cash, Accounts Payable, Notes Payable, Interest Payable, Unearned Ticket Revenue, Ticket Revenue, Supplies Expense, Discount, and Interest Expense. create the journal entries that would be necessary to record the information. Any of the seven accounts named in the assignment may be used to compose the required journal entries. As mentioned earlier, remember that each journal entry requires at least one debit and at least one credit, and that the entries should list the debit(s) first, followed by the credit(s). ? Scenario 1: On April 1, 2009 Williams Company borrowed $100,000 from National Bank. The note is a 10%, nine month note. Interest accrues quarterly. The total principal and interest will be paid December 31, 2009. Record the entries for April 1, the quarterly accruals and the payment on 12/31/09. (Remember that the interest expense and the interest payable accounts must show an increase on three occasions (quarterly on 6/30/09, 9/30/09, and finally on 12/31/09). Also, remember to calculate the quarterly interest amount properly.) ? Scenario 2: Midwest University sells 5,000 season baseball tickets at $25 each for its five-game home schedule. Record the entries for the sale of the tickets and the entry after its first home game. (The wording on this scenario is meant to describe a situation in which fans pay for a $25 ?season? ticket that allows them admission to all five future games.) ? Scenario 3: Willams Company is on credit with its major supplier. On May 1, they purchased $10,000 in supplies on credit. The terms are 2/10, net 30. They make the payment on May 10, to take advantage of the discount. Record the entry for the payment on 5/10. (This scenario requires just one entry to record the payment for supplies on May 10th; the trick is to make sure that you record the correct amount of payment in light of the discount being offered.)


Paper#5949 | Written in 18-Jul-2015

Price : $25