Reference no: EM13990278
Prepare the journal entries for the eight following transactions. Use dates but descriptions are not required.
On 10/1/15, Equipment was purchased for $10,000 cash down payment and a 10% per annum promissory note of $40,000.
On 12/31/15, the fiscal year ended and the accrued interest was recorded as an adjusting entry.On June 30, 2016 the note was paid in full. No interest has been accrued in 2016 yet.
There are 10,000 shares of $2 par common stock outstanding. The board of directors declares a 15 cent dividend per share on May 15, 2016.
On June 30, the above declared dividend is paid to holders of record as of June 20, 2016
There are 8,000 shares of $10 par common stock outstanding. On July 15, 2016 the market value of the stock is $72 per share and the board of directors declares a 10% stock dividend.
On July 30, 2016 the above shown stock dividend is paid to holders of record as of July 20.
On August 10, 2016 the board of directors declares a 2-for-1 stock split of 50,000 outstanding shares of $15 par value common stock.
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