Journalize the transactions

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Journalize:

-On January 1, 2017 Harmony issued 1,500 shares of $22 par, 8% preferred stock for $43,700.

-On January 1, 2017 Harmony also issued 2,000 shares of common stock for $54,000.

-On Jan. 1 Harmony issued $80,000, 6%, 5 year bonds when the market rate was 7% . Interest is to be paid annually on each Jan. 1 beginning one year from date of issue.

-Harmony reaquired 500 shares of its common stock on Sep 19, 2017 for $39 per share.

-On Dec 31, Harmony declared the annual preferred dividend and a $1.75 per share dividend on outstanding common stock, all payable in cash on Jan 20, 2018.

-Harmony estimates that the total amount of accounts receivable that is uncollected at a year end is $1,904.

-The building is being depreciated using the straight line method over 20 years. The salvage value is $22,500.

-The equipment is being depreciated using the straight line method over 5 years. The salvage value is $13,500.

-The unearned rent was collected on Sep. 1 2017. It was receipt of 5 months'' rent in advance (Sep 1 2017 through Jan 31, 2018).

-The annual interest on bonds for 2017 has not been recorded. Harmony uses the effective interest method.

-The Harmony corporation must make an adjusting entry to accrue income tax expense on income before income tax at a rate of 29%. The income taxes will not be paid until March 28, 2018.

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In the given assignment journal entries are prepared for Harmony Corporation for the transactions mentioned regarding issuance of common stock, preferred stock, bonds, re-purchase of common stock, depreciation, interest, bad debts, dividends, etc. The working notes are provided for the calculations wherever required.

Reference no: EM131420552

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3/18/2017 4:56:28 AM

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