Journal & Income Statement Form
Financial Accounting Page 3
Name__________________
150 points total
Journal Entries 2 - 8 points each (75 points)
Page 4
Page 5
ABC Corporation, Inc.
Income Statement
XXXXXXXXXXFor the Year Ended December 31, 20X XXXXXXXXXXpoints)
STATEMENT OF STOCKHOLDERS' EQUITY AND BALANCE SHEET FORMS ON NEXT
TABS BELOW.
Statement of SHE Form
ABC Corporation, Inc. Page 6
Statement of Stockholders' Equity
For the Year Ended December 31, 20X1 (12 points)
Common Stock Paid-in Capital in Excess of Par - Common Stock Paid-in Capital from sale of Treasury Stock Retained Earnings Treasury Stock Total
Balances, January 1 0 0
Issued common stock
Net income
Cash dividends
Stock dividends
Sale of treasury stock
Purchase of treasruy stock
Balances December 31
Balance Sheet Form
Page 7
ABC Corporation, Inc.
Balance Sheet
XXXXXXXXXXDecember 31, 20X1 XXXXXXXXXX36 points)
Assets
Liabilities
Stockholders’ Equity
Financial Accounting - Project 2 Page 1
Name_____________________ 400
150 points (For Instructor: Even 100's
etween 100 and 4000)
Part 1 Instructions:
Input Form (Excel file). Use the letter for each as the date.
Journal Entries
A. Issued 2000 shares of $10 par common stock at $11, receiving cash. (6 points)
B. Issued $ 40000 of 10 year 10% bonds at a market (effective) interest rate of 9%,
with interest payable semiannually. (6 points)
Use the Present Value Tables in Appendix A of text book. Round all
calculations to the nearest dollar.
C. Declared a dividend of $0.25 per share on common stock. On date of declaration,
6400 shares of common stock were outstanding. (3 points)
D. Paid cash dividend from (c) above. (2 points)
E. Purchased 2400 shares of Jones Company for $10 per share, plus $1200 commission.
Our company purchased less than 20% of the outstanding stock of Jones Company. (3 points)
F. Declared a 5% stock dividend on the $10 par common stock when the (6 points)
market price was $ 25 per share. There were 6400 Shares outstanding.
G. Distributed the stock dividends declared in (F). (2 points)
H. Purchased $5000 of 5% bonds at par. (3 points)
Interest is payable semiannually.
I. Purchased 120 shares of treasury common stock for $12 per share. (3 points)
J. Received semiannual interest from bonds purchased in (H). (3 points)
K. Received a total cash dividend of $240 from Jones Company. (3 points)
L. Received a $400 dividend from our investment in Masco Company stock.
This investment is accounted for under the equity method. (3 points)
Record the following journal entries for ABC Corporation on the journal in the provided Student
Requirements and Basic Instructions:
1. Each student should complete the project on an individual basis. Tutors and others are not allowed to help
students on the project. If a project is not completed on an independent, individual basis, the student will receive
zero points for the project.
2. Instructors can only answer questions on the project in general.
3. Students should complete the project and turn it in to the dropbox by the due date. The instructor reserves the
ight to not accept late projects or deduct points on projects turned in past the due date.
4. There are different versions of the project that will be assigned (course mailed) by the instructor.
5. By submitting in the Canvas dropbox you are "signing" that you have followed the instructions above.
M. Sold, at $17 per share, 60 shares of treasury common stock purchased in (I). (6 points)
N. Sold 480 shares of Jones company stock purchased in (E) for $13
per share, including commission. (6 points)
O. Masco Company's total earnings are $20000. We own 40%. Record the earnings
for our company using the equity method. (3 points)
P. Sold the bonds purchased in (H) at 103 plus $63 in accrued interest. (8 points)
Q. At the end of the accounting period, the remaining shares of Jones Company stock
increased $2.00 per share (3 Points)
R. Record the payment of semiannual interest on the bonds issued in (B)
and the amortization of the premium for six months.
The amortization is determined using the straight-line method. (6 points)
Round all calculations to the nearest dollar.
Part 2 Instructions: Page 2
Debit Credit
Cash 120,000
Accounts receivable 79,000
Allowance for doubtful accounts 4,000
Equity Investments at cost 20,000
Valuation allowance for Equity Investments 2,000
Merchandise inventory at lower of cost (FIFO) or market 8,000
Prepaid expenses 1,200
Interest receivable 800
Investment in Masco Company stock 6,000
Store buildings and equipment 122,000
Accumulated depreciation—store buildings and equipment 60,000
Accounts payable 32,960
Income tax payable 2,000
Bonds payable, 10%, due in 10 years 40,000
Premium on bonds payable 2,000
Retained earnings, January 1, 20X1 91,220
Cash dividends , January 1, 20X1 balance 0
Stock Dividends, January 1, 20X1 balance 0
Common stock, $10 par (100,000 shares authorized; 4400 shares
outstanding), January 1, 20X1
44,000
Paid-in capital in excess of par—common stock, January 1, 20X1 4,400
Paid-in capital from sale of treasury stock, January 1, 20X1 0
Treasury stock, January 1, 20X1 0
Sales 280,000
Gain from sale of investment 400
Unrealized gain(loss) on Equity Investments 3,840
Dividend revenue 320
Interest revenue 1,080
Income of Masco Company 8,000
Cost of goods sold 160,000
Advertising expense $4,000
Depreciation expense—store buildings and equipment 2,800
Miscellaneous selling expenses 2,000
Sales commissions 8,000
Office rent expense 20,000
Office salaries expense 24,000
Miscellaneous administrative expenses 400
Interest expense 2,000
Income tax expense XXXXXXXXXX,000
Use the Student Input Form (Excel File) to complete the Financial Statements
Prepare a multistep income statement, a statement of stockholders' equity, and a classified balance
sheet in good form for the year ended December 31, 20X1.
The balances listed below are for December 31 and already include the journal entries you just
prepared except for the stockholders' equity accounts. The balances listed for the stockholders' equity
accounts are the January 1 balances. You will need to utilize the journal entries you just prepared to
complete the Statement of Stockholders' Equity.