Indicate the accounts to be debited and credited when recording the following tr
ID: 2504515 • Letter: I
Question
Indicate the accounts to be debited and credited when recording the following transactions of the Golini Corporation by writing the indentifying letters in the answer column. There may be more than one letter for a debit or credit.
DR. CR.
___ ___ 1. decalared a stock dividend of 2,000 shares of $10-par common stock; fair market value, $18. per share.
2. recieved subscription for 2,000 shares of $50.-par preferred 7 percent stock at $52. per share.
3. recieved $100,000 cash for sale of 10,000 shares of $10.-par common stock.
4. sold 8 percent bonds with face amount of $60,000 at 95, receiving cash.
5. bought equipment for cash $8,000.
6. sold 10 percent bonds with face amount of $90,000 at 102. recieving cash.
7. bought various securities with sinking fund cash at a cost of $5,810.
8. Paid semiannual interest on bonds issued in transaction 6.
9. Recorded the adjusting entry for additional corporation income tax.
10. Deposited $8,000 cash in a bond sinking fund.
11. Declared a cash dividend amounting to $5,500. on preferred 7 percent stock.
12. Issued the stock dividend declared in transaction 1.
13. Received payment in full from subscribers in transaction 2.
14. Issued stock to subcribers in transaction 13.
Explanation / Answer
answer key is shown below: