Reference no: EM132498696

Question 1: Lind Company issued $ 500,000 of 5 year, 8% bonds at 97 on January 1,2014. The bonds pay interest twice a year.

1- Prepare the journal entry to record the issuance of the bonds.

Question 2: Selin Company reported the following balances at December 31, 2016: common stock $500,000; paid-in capital in excess of par value $100,000; retained earnings $250,000. During 2017, the following transactions affected stockholders' equity.

1. Issued preferred stock with a par value of $150,000 for $200,000.

2. Purchased treasury stock (common) for $40,000.

3. Earned net income of $140,000.

4. Declared and paid cash dividends of $75,000.

Instructions

Prepare the stockholders' equity section of Selin Company's December 31, 2017, balance sheet.

Question 3: Journalize the following transaction:

1. On May 10, Jack Corporation issues 2,000 shares of $ 10 par value common stock for cash at $ 18 per share.

2. On July 1, Raney Corporation purchase 500 shares of its $5 par value common stock for the treasury at cash price of $9 per share. On September 1, it sells 300 shares of the treasury stock for cash at $ 11 per shares.

3. On November 1, Garb Inc. issues 5,000 shares of $100 par value preferred stock for cash at $130 per share.

Question 4: The following items were taken from the financial statements of Buttercup Company. (All dollars are in thousands.)

Mortgage payable $ 2,443 Accumulated depreciation 3,655

Copy right 880 Accounts payable 1,444

Property, plant, and equipment 11,500 Notes payable after 2015 1,200

Investment in STC Stocks (4 yeasr) 1,100 Owner's Equity 13,480

Short-term investments 3,690 Accounts receivable 1,696

Notes payable in 2015 1,000 Inventories 1,756

Cash 2,600

Instructions

Prepare classified balance sheet in good form as of December 31, 2014.