Selected transactions completed by Primo Discount Corporation during the current fiscal year are as follows: Jan. 9 Split the common stock The stock outstanding when a corporation has issued only one class of stock.  3 for 1 and reduced the par A dollar amount assigned to each share of stock.  from $75 to $25 per share. After the split, there were 1,200,000 common shares outstanding. Feb. 28 Purchased 40,000 shares of the corporation’s own common stock at $28, recording the stock Shares of ownership of a corporation.  at cost. May 1 Declared semiannual dividends Distribution of a corporation’s earnings to stockholders.  of $0.80 on 75,000 shares of preferred stock A class of stock with preferential rights over common stock.  and $0.12 on the common stock to stockholders The owners of a corporation.  of record on June 1, payable on July 10. Jul. 10 Paid the cash dividends A cash distribution of earnings by a corporation to its shareholders. . Sep. 7 Sold 30,000 shares of treasury stock Stock that a corporation has once issued and then reacquires.  at $34, receiving cash. Oct. 1 Declared semiannual dividends of $0.80 on the preferred stock and $0.12 on the common stock (before the stock dividend). In addition, a 2% common stock dividend A distribution of shares of stock to its stockholders.  was declared on the common stock outstanding. The fair market value of the common stock is estimated at $36. Dec. 1 Paid the cash dividends and issued the certificates for the common stock dividend. Journalize the transactions. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Fill in the data below … or a separate Excel page JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 1. Feedback Check My Work Explanation Chart of Accounts Primo Discount Corporation General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depre.

1. Selected transactions completed by Primo Discount Corporation
during the current fiscal year are as follows:
Jan.
9
Split the common stock
The stock outstanding when a corporation has issued only one
class of stock.
3 for 1 and reduced the par
A dollar amount assigned to each share of stock.
from $75 to $25 per share. After the split, there were 1,200,000
common shares outstanding.
Feb.
28
Purchased 40,000 shares of the corporation’s own common
stock at $28, recording the stock
Shares of ownership of a corporation.
at cost.
May
1
Declared semiannual dividends
Distribution of a corporation’s earnings to stockholders.
of $0.80 on 75,000 shares of preferred stock
A class of stock with preferential rights over common stock.
and $0.12 on the common stock to stockholders
The owners of a corporation.
of record on June 1, payable on July 10.
Jul.
10
Paid the cash dividends
A cash distribution of earnings by a corporation to its
shareholders.
.
Sep.
7

2. Sold 30,000 shares of treasury stock
Stock that a corporation has once issued and then reacquires.
at $34, receiving cash.
Oct.
1
Declared semiannual dividends of $0.80 on the preferred stock
and $0.12 on the common stock (before the stock dividend). In
addition, a 2% common stock dividend
A distribution of shares of stock to its stockholders.
was declared on the common stock outstanding. The fair market
value of the common stock is estimated at $36.
Dec.
1
Paid the cash dividends and issued the certificates for the
common stock dividend.
Journalize the transactions. If no entry is required, simply skip
to the next transaction. Refer to the Chart of Accounts for exact
wording of account titles.
Fill in the data below … or a separate Excel page
JOURNAL
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
1
2

3. 3
4
5
6
7
8

4. 9
10
11
12
13
14

5. 15
16
17
18
1. Feedback
Check My Work
Explanation
Chart of Accounts Primo Discount Corporation
General Ledger
ASSETS

6. 110
Cash
120
Accounts Receivable
131
Notes Receivable
132
Interest Receivable
141
Merchandise Inventory
145
Office Supplies
151
Prepaid Insurance
181
Land
193
Equipment
194
Accumulated Depreciation-Equipment
LIABILITIES
210
Accounts Payable
221
Notes Payable
226
Interest Payable
231
Cash Dividends Payable
236
Stock Dividends Distributable
241
Salaries Payable
261

7. Mortgage Note Payable
EQUITY
311
Common Stock
312
Paid-In Capital in Excess of Par-Common Stock
315
Treasury Stock
321
Preferred Stock
322
Paid-In Capital in Excess of Par-Preferred Stock
331
Paid-In Capital from Sale of Treasury Stock
340
Retained Earnings
351
Cash Dividends
352
Stock Dividends
390
Income Summary
REVENUE
410
Sales
610
Interest Revenue
EXPENSES
510
Cost of Merchandise Sold
515
Credit Card Expense

8. 520
Salaries Expense
531
Advertising Expense
532
Delivery Expense
533
Selling Expenses
534
Rent Expense
535
Insurance Expense
536
Office Supplies Expense
537
Organizational Expenses
562
Depreciation Expense-Equipment
590
Miscellaneous Expense
710
Interest Expense