Question

Cannon Sporting Goods is one of the world’s leading manufacturers of athletic shoes and sports apparel. The following activities occurred during a recent year. The amounts are rounded to millions, except for par value. Purchased additional buildings for $182 and equipment for $280; paid $404 in cash and signed a long-term note for the rest. Issued 120 shares of $2 par value common stock for $350 cash. Declared $145 in dividends to be paid in the following year. Purchased additional short-term investments for $7,816 cash. Several Cannon Sporting Goods investors sold their own stock to other investors on the stock exchange for $92. Sold $4,213 in short-term investments for $4,213 in cash. Journal entry

Answer 1

1. Dr Building 182

Dr Equipment 280

Cr Cash 404

Cr Notes payable 58

2. Dr Cash 350

Cr Common stock 240

Cr Share premium 110

3. Dr Retained earning 145

Cr Dividend payable 145

5. Dr Short term investment 7816

Cr Cash 7816

6.No entry

7. Dr Cash 4213

Cr Short term investment 4213

Step-by-step explanation:

1.Building and equipment purchased on cash and signed promissory note.

2. Share isssue at par and premium.

3.First dividend has to declared and then its payment is made.