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journal entries 1. ABC COMPANY PAID ITS ATTORNEY $20,000 TO INCORPORATE BUSINESS 2. ABC COMPANY ISSUED...

journal entries
1. ABC COMPANY PAID ITS ATTORNEY $20,000 TO INCORPORATE BUSINESS
2. ABC COMPANY ISSUED $400,000 BONDS FOR 97
3. ABC COMPANY ISSUED $400,000 BONDS FOR 102
4. ABC COMPANY DECLARED A 2 FOR 1 STOCK SPLIT WHEN PV WAS $3/SH AND THE NUMBER OF SHARES OUTSTANDING WAS 100,000
5. ABC COMPANY DECLARED A 5% STOCK DIVIDEND. PV IS $1.50/SH AND THERE ARE 200,000 SHARES OF COMMON STOCK OUTSTANDING AND THE SELLING PRICE IS $46/SH
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Answer #1

Journal entries

No General Journal Debit Credit
a Organization expense 20000
Cash 20000
b Cash (400000*.97) 388000
Discount on bonds payable 12000
Bonds payable 400000
c Cash (400000*1.02) 408000
Bonds payable 400000
Premium on bonds payable 8000
d No Journal entry
e Stock dividend (200000*5%*46) 460000
Common Stock dividend distributable 15000
Paid in capital in excess of par-Common Stock 445000
Common Stock dividend distributable 15000
Common Stock 15000
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