Journalize:
-On January 1, 2017 Harmony issued 1,500 shares of $22 par, 8% preferred stock for $43,700.
-On January 1, 2017 Harmony also issued 2,000 shares of common stock for $54,000.
-On Jan. 1 Harmony issued $80,000, 6%, 5 year bonds when the market rate was 7% . Interest is to be paid annually on each Jan. 1 beginning one year from date of issue.
-Harmony reaquired 500 shares of its common stock on Sep 19, 2017 for $39 per share.
-On Dec 31, Harmony declared the annual preferred dividend and a $1.75 per share dividend on outstanding common stock, all payable in cash on Jan 20, 2018.
-Harmony estimates that the total amount of accounts receivable that is uncollected at a year end is $1,904.
-The building is being depreciated using the straight line method over 20 years. The salvage value is $22,500.
-The equipment is being depreciated using the straight line method over 5 years. The salvage value is $13,500.
-The unearned rent was collected on Sep. 1 2017. It was receipt of 5 months'' rent in advance (Sep 1 2017 through Jan 31, 2018).
-The annual interest on bonds for 2017 has not been recorded. Harmony uses the effective interest method.
-The Harmony corporation must make an adjusting entry to accrue income tax expense on income before income tax at a rate of 29%. The income taxes will not be paid until March 28, 2018.