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For this assignment_ provide the general journal entries to record

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					For this assignment, provide the general journal entries to record the necessary information based
on each scenario below. You may use a word processing or electronic spreadsheet program to
record your answers. In addition, use the following account titles for the transactions: Retained
earnings, Dividends payable, Cash, Bonds payable, Interest expense, Interest payable, Paid-in
capital, Common Stock, and Preferred Stock. • Scenario 1: On September 15, 2010, the board of
directors of Federated Corporation declared a cash dividend of $1 per share on its 800,000
outstanding shares of common stock. The dividend is payable on October 12 to the stockholders
of record on September 30. Give the journal entries necessary on

September 15          Retained Earnings Dr. 800000 Dividend payable Cr.800000

September 30          Record data, no entry is required

October 12.           Dividend payable Dr.800000 Cash Cr.800000



• Scenario 2: North Lake Corporation had 200,000 shares of $10 par value common stock
outstanding, on December 1, 2010. The directors voted to split the stock on a 2-for-1 basis,
issuing two new shares to stockholders for every one share presently owned. The estimated
market value of the new shares will be $14.50.

No entry is required as the total par value of the common stock paid up capital remains
unchanged. Just change the number of shares outstanding to 400000 and par value per share to
$5.

 • Scenario 3: Crockett Corporation issued $200,000 of its 10 percent bonds payable on April 1,
2030. The bonds were issued at face value. Interest is payable semi-annually, on October 1 and
April 1. Give the journal entries to issue the bonds and pay each of the first two interest
payments to bondholders •

April 1 2030   Cash Dr 200000                Bonds payable Cr.200000

Oct 1          Interest expense Dr.10000     Cash Cr10000

Dec 31         Interest expense Dr.5000      Interest payable Cr.5000

April 1 2031   Interest expense Dr.5000      Interest payable Dr.5000       Cash Cr10000



Scenario 4: Beasley Corporation issued 1,000 shares of its $10 par value common stock for cash
at $11 per share. Create an entry to reflect the receipt of cash in exchange for the stock sold in
the scenario

Cash Dr. 11000        Common Stock Cr10000 Additional paid in capital common stock Cr1000
• Scenario 5: Young Corporation issued 2,000 shares of $25 par value common stock and 300
shares of 13%, $50 par value preferred stock for cash at par value. This scenario is very similar
to Scenario 4 except that the company is now selling both common and preferred stock, and the
sales are both at par value. You may compose two separate entries or one combined entry to
reflect the receipt of cash in exchange for the stock sold in the scenario. Use the following
account titles for the transactions: Cash, Accounts Payable, Notes Payable, Interest Payable,
Unearned Ticket Revenue, Ticket Revenue, Supplies Expense, Discount, and Interest Expense.
create the journal entries that would be necessary to record the information. Any of the seven
accounts named in the assignment may be used to compose the required journal entries. As
mentioned earlier, remember that each journal entry requires at least one debit and at least one
credit, and that the entries should list the debit(s) first, followed by the credit(s).

Cash Dr.65000          Common stock Cr.50000          13% Preferred stock Cr15000



• Scenario 1: On April 1, 2009 Williams Company borrowed $100,000 from National Bank. The
note is a 10%, nine month note. Interest accrues quarterly. The total principal and interest will be
paid December 31, 2009. Record the entries for April 1, the quarterly accruals and the payment
on 12/31/09. (Remember that the interest expense and the interest payable accounts must show
an increase on three occasions (quarterly on 6/30/09, 9/30/09, and finally on 12/31/09). Also,
remember to calculate the quarterly interest amount properly.)

April 1        Cash DR 100000         Notes payable Cr.100000

June 30        Interest expense Dr.2500       Interest payable Cr2500

Sept 30        Interest expense Dr.2500       Interest payable Cr2500

Dec 31      Interest expense Dr.2500          Interest payable Dr5000        Notes payable
Dr100000 Cash Cr107500

• Scenario 2: Midwest University sells 5,000 season baseball tickets at $25 each for its five-game
home schedule. Record the entries for the sale of the tickets and the entry after its first home
game. (The wording on this scenario is meant to describe a situation in which fans pay for a $25
“season” ticket that allows them admission to all five future games.)

Cash Dr.125000         Unearned revenue Cr125000

Unearned revenue Dr.25000 Revenue earned Cr 25000            after first home game

• Scenario 3: Willams Company is on credit with its major supplier. On May 1, they purchased
$10,000 in supplies on credit. The terms are 2/10, net 30. They make the payment on May 10, to
take advantage of the discount. Record the entry for the payment on 5/10. (This scenario requires
just one entry to record the payment for supplies on May 10th; the trick is to make sure that you
record the correct amount of payment in light of the discount being offered.)
Accounts payable Dr.10000 Purchase Discount Cr200   Cash Cr9800



Urgency: HIGH

				
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