Produces and distributes

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Gabriel Co. produces and distributes semiconductors for use by computer manufacturers. Gabriel Co. issued $840,000 of 10-year, 4% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions for the current year. Refer to the Chart of Accounts for exact wording of account titles. May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. Dec. 31 Recorded accrued interest for two months.

Reference no: EM13912847

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Shareholder to purchase : In 2004 Mr. EF, a single taxpayer, contributed $45,000 in exchange for 500 shares of DB stock. In 2007, he paid $40,000 to another shareholder to purchase 1,000 more DB shares. All DB's stock qualified as section 1244 stock when it was issued.
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Chart of accounts : A. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles.
Produces and distributes : Gabriel Co. produces and distributes semiconductors for use by computer manufacturers.
Common stock outstanding : The company had 45,000 shares of common stock outstanding during the year. In addition, the company issued 3,000 shares of $50 par value preferred stock on January 3, 2016.
The estimated product warranty : The estimated product warranty is 4% of sales. Assume that sales were $700,000 for January.
Employee worked : Assume that the employee worked 60 hours during the week, and that the gross pay prior to the current week totaled $52,200
Journalize the entries : Journalize the entries to record (a) the issuance of the note on January 1 and (b) the payment of the note at maturity, including interest

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