Chapter 18 Transactions

Question 1

Issues twenty five 20 year 6% $10,000 bonds

Answer 1

Cash receipts journal

Bonds payable 10,000 * 25

Question 2

Signed a 180 day 12% note to PTS for an extension of time on its account payable 3,200

Answer 2

General journal
Accts payable pts corps debit
Notes pay credit for 3200

Question 3

Issues 8000 shares of 25 dollar par value common stock at par value

Answer 3

Cash receipts
Capital stock common
For 200,000 (8000*25)

Question 4

Drew 24800 on its line of credit

Answer 4

Cash receipts

Line of credit for 24800

Question 5

Sold 500 shares of 6.5% $50.00 par value preferred stock at par value

Answer 5

Cash receipts
Capital stock preferred for 25,000
(50*500)

Question 6

Issues 6000 shares of 25.00 dollar or value common stock at 28 dollars per share

Answer 6

Cash receipts
Capital stock common (60010.0)
paid in capital excess of par common 18000
Cash debit 24000 (60040.0)

Question 7

Signed a 5 year 8% note 45000

Answer 7

Cash receipts

Long term notes pay for 45000

Question 8

Paid cash for the December payment on the July 31 notes payable

Answer 8

Cash payments
Long term notes pay 624.77
Interest expense 287.67
Cash 912.44 ( use chart thing)

Question 9

Paid cash for the monthly payment on its line of credit: principal 3000 plus interest 127.95

Answer 9

Cash pay
Line of credit 3000
Interest expense 128.95
Cash credit for 3128.95

Question 10

Paid cash for the maturity value of the July 3rd note to pts corps 3200 plus interest

Answer 10

Cash pay
Notes pay 3200
Interest expense 192.00
(320012%180/360)

Question 11

Paid cash for the semiannual interest on bonds

Answer 11

Cash pay

Interest expense for 15,000 (250,000*6%)