Reference no: EM132513450

Question -

Part 1: On August 1, 2018, Dorchester Company entered into a capital lease, and correctly recorded the leased asset, and related obligation at $200,000. The annual interest rate implicit in the lease was 10%, and the first lease payment of $2,600 is due at the end of each month of the lease. Use this information to prepare the General Journal entry (without explanation) for the August 31, 2018 monthly lease payment. If no entry is required then write "No Entry Required."

Part 2: On January 2, 2019, Frederick Corporation issued 28,000 shares of $20 par value common stock for $23 per share. On April 1, 2019, Alpha reacquired 2,500 of these shares when they were trading $26 per share. On August 1, 2019 Frederick reissued 900 shares of treasury stock at the going market rate of $29 per share. Use this information to prepare the General Journal entry (without explanation) for the August 1 transaction.

Part 3: On January 1, 2019, Frederick Corporation had 100,000 shares of common stock outstanding with a par value of $6 per share. On March 31, Frederick Corporation authorized a 12% stock dividend when the market value was $15 per share. Use this information to prepare the General Journal entry (without explanation) for March 31. If no entry is required then write "No Entry Required."