1. A corporation was organized on January 30 of the current year, with an authorization of 20,000 shares of $4 preferred stock, $12 par, and 100,000 shares of $3 par common stock.
Journalize the following selected transactions that were completed during the first year of operations:
Jan. 30 Issued 15,000 shares of common stock at $23 per share for cash.
Mar. 15 Issued 2,000 shares of preferred stock at $56 for cash.
2. Brubeck Co. issued $10,000,000 of 30-year, 8% bonds on May 1, 2015, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions for the current year:
May 1, 2015 Issued the bonds for cash at their face amount.
Nov. 1, 2015 Paid the semiannual interest on the bonds.
Dec. 31, 2015 Recorded accrued interest for two months.
May 1, 2016 Paid the semiannual interest on the bonds.
3. On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for $1,225,000. Present entries to record the following transactions for the current fiscal year:
(a) Issuance of the bonds.
(b) First semiannual interest payment with amortization of bond discount using the straight-line method.
4. On the first day of the current fiscal year, $2,000,000 of 10-year, 7% bonds, with interest payable annually, were sold for $2,125,000. Present entries to record the following transactions for the current fiscal year:
(a) Issuance of the bonds.
(b) First annual interest payment with amortization of bond premium using the straight-line method.