Prepare journal entries for the following transactions (5 pts per journal entry) Opening Data: C/S $2.00 par, 0 shares outstanding P/S $100 par, 4%, cumulative. O shares outstanding Jan. 1, 1998 Issued a $3,000,000 bond @ 97.0, a 10-year bond, paying 3% interest; the market interest rate today is 5%. Interest is be paid twice per year on June 30 & Dec. 31 every year. Jan. 2. Issued 60,000 shares of Comi non Stock to purchase land worth $375,000 Jan. 3. Issued 2,000 shares of Prefez e Sick for a building worth $202,500. Jan. 4. Incurred $33,000 of Salary Expense ir stead of paying employees cash we issued 300 shares of Preferred Stock to our employees.
Jan. 5. Sold 70,000 shares of Common Siuck for $7 per share. Feb. 6. Purchased 2,000 shares of our own Common Stock/now called Treasury Stock for $5/share. Mar. 7. Declared a $0.09 per share Common Siock cash dividend to shareholders of record on Míarch 15 to be paid Marsh 29. Mar. 8. Declared an annual cnh diviend on the Preferred Stock to shareholders of recoid on March 15 to be raid on March 30. Mar. 9. Declared a sinall a 5% Conimo Stock Dividend, market value of each share is $13 per share to shareholders of record March 15 to be issued March 31. Mar. 15 Date of Records. Mar. 29 Paid the Common Stock wash dividend declared on March 7. Mar. 30 Paid the Preferred Stock cash dividend declared on March 8. Mar. 31 Issued the Common Stock Dividend declared on March 9. June 30, 1998 Prepare the necessary journal entry related to the bond interest. July 15 Sold 800 shares of the Treasury Stock purchased above on Jan.6 for $12 per share. Aug. 16 Declared a Common Stock 4 for 1 stock split, answer is NOT a J/E what 2 items changed and by how much?? Sept. 17 Sold 10,000 shares of C/S for $4 per share. Dec. 31, 1998 Prepare the necessary journal entry related to the bond interest. Jan. 1, 1999 Retire the bond @ 99.0. Assume below instead of the above Jan. 1, 1999 journal entry: Jan. 1, 1999 Retire the bond @103.