Comprehensive Problem 4 Part 1: Journalize Selected transactions completed by Everyday Products Inc. during the fiscal year ending December 31, 2012,…


Comprehensive Problem 4Part 1: JournalizeSelected businesss completed by Everyday Products Inc. during the fiscal year consummation December 31, 2012, were as follows:1. Journalize the clarified businesss.If no minute is exactd, choice "No Minute Required" from the dropdown and liberty the quantity boxes broad. For a unification business, if an quantity box does not exact an minute, liberty it broad. a. Issued 12,500 distributes of $25 par despicable fund at $32, receiving currency.Description Debit Credit b. Issued 2,000 distributes of $100 par preferred 5% fund at $105, receiving currency.Description Debit Credit c. Issued $400,000 of 10-year, 6% bonds at 105, delay curiosity-behalf payable semiannually.Description Debit Credit d. Apparent a quarterly dividend of $0.45 per distribute on despicable fund and $1.25 per distribute on preferred fund. On the bound of archives, 85,000 distributes of despicable fund were uncollected, no accumulation distributes were held, and 17,000 distributes of preferred fund were uncollected.Description Debit Credit e. Compensated the currency dividends apparent in (d).Description Debit Credit f. Purchased 5,500 distributes of Kress Corp. at $22 per distribute, plus a $275 brokerage deputation. The boarding is classified as an available-for-sale boarding.Description Debit Credit g. Purchased 6,500 distributes of accumulation despicable fund at $35 per distribute.Description Debit Credit h. Purchased 36,000 distributes of Lifecare Co. fund undeviatingly from the founders for $18 per distribute. Lifecare has 112,500 distributes issued and uncollected. Everyday Products Inc. treated the boarding as an equity system boarding.Description Debit Credit i. Apparent a 2% fund dividend on despicable fund and a $1.25 quarterly currency dividend per distribute on preferred fund. On the bound of affirmation, the communicate treasure of the despicable fund was $40 per distribute. On the bound of archives, 85,000 distributes of despicable fund had been issued, 6,500 distributes of accumulation despicable fund were held, and 17,000 distributes of preferred fund had been issued.Description Debit Credit j. Issued the fund diploma for the fund dividends apparent in (h) and compensated the currency dividends to the preferred fundholders.Description Debit Credit k. Received $24,500 dividend from Lifecare Co. boarding in (h).Description Debit Credit l. Purchased $62,000 of Nordic Wear Inc. 10-year, 6% bonds, undeviatingly from the issuing guild at par treasure, plus accrued curiosity-behalf of $550. The bonds are classifed as a held-to-maturity long-term boarding.Description Debit Credit m. Sold, at $42 per distribute, 2,600 distributes of accumulation despicable fund purchased in (g).Description Debit Credit n. Received a dividend of $0.65 per distribute from the Kress Corp. boarding in (f).Description Debit Credit o. Sold 500 distributes of Kress Corp. at $26.50, including deputation.Description Debit Credit p. Chronicled the liquidation of semiannual curiosity-behalf on the bonds issued in (c) and the amortization of the prize for six months. The amortization was robust using the straight-line system.Description Debit Credit q. Accrued curiosity-behalf for three months on the Nordic Wear Inc. bonds purchased in (l).Description Debit Credit r. Lifecare Co. archivesed aggregate rights of $205,000. Everyday Products archivesed equity rights for its distribute of Lifecare Co. net pay.Description Debit Credit s. The clear treasure for Kress Corp. fund was $18.50 per distribute on December 31, 2012. The boarding is adjusted to clear treasure using a valuation equivalent representation. Assume Valuation Equivalent for Available-for-Sale Investments had a source pit of naught.Description Debit Credit

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