WileyPLUS l Help Contact Us1 Los Out LUS 310311312 INTERMEDI

WileyPLUS l Help Contact Us1 Los Out LUS (310/311/312) INTERMEDIATE ACCOUNTING 1& Kleso, Intermediate Accounting, 160 dy &Practice; n Assignment Exercise 15-18 (Part Level Submission) Bonita Company reported the following amounts in the stockholders\' equlity section of Its December 31, 2016, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 2,200 shares issued) $220,000 Common stock, $5 par (95,500 shares authortzed, 19,100 shares issued) Additional paid-in capital Retalned earnings 500 shares authortzed, 19,100 shares 95,500 136,000 455,000 $906,500 During 2017, Bonita took part in the following transactions concerning stockholders\' equity. 1. Pald the annual 2016 $10 per share dividend on preferred stock and a $2 per share dividend on common stock. These dividends had been declared on December 31, 2016 2. Purchased 1,700 shares of its own outstanding common stock for $42 per share. Bonita uses the cost 3. Reissued 800 treasury shares for land valued at $34,600 4. Issued 460 shares of preferred stock at $105 per share. 5. Declared a 10% stock dividend on the outstanding common stock when the stock is selling for $45 per share. 6. Issued the method. stock dividend per share dividend on common stock. These dividends are payable in 2018. 7. Declared the annual 2017 $10 per share dividend on preferred stock and the $2 Prepare journal entries to record the transactions described above. (Credit account titles are a manually. If no entry is required, select \"No Entry\" for the account titles and enter o automatically indented when amount Is entered. Do not Indent for the amounts.) 888 r 6 8 3 WE command option

Solution

Solution:

Journal Entries - Bonita Company
Event	Particulars	Debit	Credit
1	Dividend Payable Dr (2200*$10 + 19100*$2)	$60,200.00
	To Cash		$60,200.00
	(To record payment of dividend)
2	Treasury stock Dr	$71,400.00
	To Cash		$71,400.00
	(To record purchase of own stock)
3	Land Dr	$34,600.00
	To Treasury Stock		$33,600.00
	To Additional paid in capital		$1,000.00
	(To record purchase of land by re issue of treasury stock)
4	Cash Dr	$48,300.00
	To Preferred Stock		$46,000.00
	To Additional paid in capital		$2,300.00
	(To record issue of preferred shares)
5	Stock Dividend Dr (1820*$45)	$81,900.00
	To Stock dividend distributable		$81,900.00
	(To record declaration of stock dividend)
6	Stock dividend distributable Dr	$81,900.00
	To Common Stock		$9,100.00
	To Additional paid in capital		$72,800.00
	(To record issue of stock dividend)
7	Cash Dividend Dr (2660*$10 + 20020*$2)	$66,640.00
	To Dividend payable		$66,640.00
	(To record declaration of dividend)