ACCT 2101 Augusta University Accounting Problems Test will upload word doc. all work is to be completed in word doc journal entry questions ACCT 2101 Princ

ACCT 2101 Augusta University Accounting Problems Test will upload word doc. all work is to be completed in word doc journal entry questions ACCT 2101
Principles of Accounting
Augusta University
Spring 2020
Dr. Lizzie Turner
Test 5
Name:_____________________________
The following transactions of Lilly of the Valley Bath Products occurred during 2018.
Oct. 1 Bought a new delivery truck for 35,000. The six-year, 6.5% note requires payments due
monthly of $650 with a $5,000 down payment. Each payment contains principal and
interest.
Oct. 1 Mortgaged the warehouse for $350,000 cash with State Bank (already owned the building,
Fair market value of $450,000). The mortgage requires monthly payments of $7,000. The
interest rate on the Note is 4 ½% and accrues monthly. The first payment is due is due
Nov. 1.
1. Journalize issuance of mortgage on Oct. 1.
2. Journalize purchase of the delivery truck on Oct. 1.
3. Make a truck payment on Nov. 1 and Dec. 1 and accrue the interest on Dec. 31 (one full
month’s interest).
4. Make mortgage payments on Nov. 1 and Dec. 1. Accrue the interest on Dec. 31.
Date
10/1
Account
Issued Mortgage Note
10/1
Purchased Truck
11/1
Truck Payment
Mortgage Payment
12/1
Truck Payment
Dr
Cr
Date
12/1
Account
Mortgage Payment
12/31
Accrue Mortgage Interest
Accrue Truck Interest
Dr
Cr
John Bear Inc. issued $450,000 of 10-year, 6.5% callable bonds payable on Aug. 1, 2018 at 101.
On Aug. 1, 2020, John Bear called the bonds at 102. Assume annual interest payments.
1. Without making journal entries, compute the carrying amount of the bonds payable on
Aug. 1, 2020.
2. Assume all amortization has been recorded properly. Journalize the retirement of the
bonds on Aug. 1, 2020.
Date
Account
DR
CR
Acrobat Architects completed the following transactions during 2018-19.
Jan. 16 Declared a cash dividend on 6%, $110 par cumulative preferred stock (1060 shares
outstanding). Declared a $0.30 per share dividend on the 100,000 shares of $2 par value
common stock outstanding. The date of record is January 31, and the payment date is
Feb. 15.
Feb. 15 Paid the cash dividends.
Jun. 1 Split Common stock 2-1.
Jul. 30 Declared a 30% stock dividend on the common stock. The market value of the common
stock was $8.50 per share. (large stock dividend).
Aug. 15 Distributed the stock dividend.
Oct. 26 Purchased 1000 shares of treasury stock for $8 per share.
Nov. 8 Sold 250 shares of treasury stock for $9.10 per share.
Dec. 1 Sold 500 shares of treasury stock for $6.95 per share.
Dec. 30 Declared a 10% stock dividend on the common stock. The market value of the common
stock was $8 per share. (small stock dividend).
2019
Jan. 16 Declared a cash dividend on 6%, $110 par cumulative preferred stock (1060 shares
outstanding). Declared a $0.15 per share dividend on the common shares outstanding.
Record the transactions in the general journal. If there is no journal entry, write “No journal
entry.” Make sure to keep track of how many shares are outstanding.
# of common shares
Date Account
Dr.
Cr.
# of common shares
Date Account
DR.
CR.
Preferred stock- 7%, $70 par value; 3,000 shares authorized, 1,500 shares issued and outstanding
Common stock- $1.50 par value; 120,000 shares authorized, 68,000 shares issued, 65,000 shares
outstanding
PIC in excess of Par—Common, $232,000
Treasury—Common; 3,000 shares at cost (Bought t $5.17 per share)
Net income: $248,500
Minimum dividend paid to preferred stockholders
No changes in common shares outstanding.
1. Fill in the following chart .
Paid in Capital
Preferred Stock—par value
Common Stock—par value
PIC in excess of Par—Common
Treasury stock
2. Compute EPS for the year
Earnings Per Share:
Amount
Multiple Choice (20 points)_______________________________________________________
Liabilities (25 points)___________________________________________________________
Retiring a bond (15 points)_______________________________________________________
Stock Transactions (25 points)_____________________________________________________
Earnings per Share (15 points)_____________________________________________________
Total_________________________________________________________________________

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