Answer To: i have attach 3 problems for accounting principal 222
Bhavani answered on Apr 23 2021
1)
Date
Account name and explanation
Debit
Credit
Jan 1
Cash
$3000,000
Preferred shares – paid in capital
$3,000,000
Feb 1
Equipment
$295,000
Common shares
$60,000
Additional paid in capital
$235,000
April 1
Retained earnings
$288,000
Common shares
$48,000.
Additional paid in capital
$240,000
June 1
Treasury stock
$164,000
Cash
$164,000
Dec 15
Dividend
$152,000
Dividend payable
$152,000
Dec 30
Dividend payable
$152,000
Cash
$152,000
Dec 31
Income Summary
$670,000
Retained earnings
$670,000
Working notes:
April 1 = 40000 shares * 2 split = 80,000 common shares *10/100 = 8000 common shares
8000 * 6= $48000
8000 *30=$240,000
Dec 15 =80,000 – 4000=76000 * $2 = $152,000
2)
Date
Account name and explanation
Debit
Credit
April 1
Cash
$5,760,000
Discounts
$240,000
Bonds payable
$6,000,000
Sep 30
Interest expense
$132,000
Discounts on bonds payable
$12000
Cash
$120,000
Sep 30
Interest expense
172,800
Discounts on bonds payable
$52,800
Cash
$120,000
Dec 31
Interest expense
$66,000
Discounts on bonds payable
$6000
Interest ...