(SOLVED) Greyhawk Investments Inc s articles of

incorporation authorize the company to

Greyhawk Investments Inc s articles of incorporation authorize the company to

Greyhawk Investments Inc.'s articles of incorporation authorize the company to issue 1,00
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Greyhawk Investments Inc s articles of incorporation authorize the company to

Greyhawk Investments Inc.'s articles of incorporation authorize the company to issue 1,000,000
common shares and 400,000 $9.00 preferred shares. During the first quarter of operations,
Greyhawk Investments Inc. completed the following selected transactions:

2017

Oct. 1 Issued 50,000 common shares for cash of $30.00 per share. 4 Signed a capital lease for
equipment. The lease requires a down payment of $600,000, plus 20 quarterly lease payments
of $60,000. The present value of the future lease payments is $981,086 at an annual interest
rate of 8 percent.

Oct. 6 Issued 2,000 preferred shares, receiving cash of $300,000.

22 Purchased land from the Province of Manitoba for $300,000 cash.

30 Purchased 5,000 (25 percent) of the outstanding common shares of Big Sky Ltd. as a long-
term investment, $270,000.

Nov. 1 Issued $1,000,000 of 6 percent, 10-year bonds payable at 98.

16 Purchased short-term investments in the common shares of TELUS Corporation, $85,000,

and ATCO Ltd., $87,000.

19 Purchased $1,000,000 of inventory on account. Greyhawk Investments Inc. uses a perpetual

inventory system.

20 Repurchased 2,000 of the company's common shares at $15.00 per share for cancellation.

Dec. 1 Received cash dividends of $1,800 on the TELUS investment.

16 Sold 1,000 of the company's common shares for cash of $24.00 per share.

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 29 Received a report from Big Sky Ltd. indicating the combined net income for November and
December was $25,000.

30 Sold merchandise on account, $2,148,000. Cost of the goods was $945,000. Operating
expenses totalled $557,000, with $498,000 of this amount paid in cash. Greyhawk Investments
Inc. uses a perpetual inventory system.

31 Accrued interest and amortized discount (straight-line method) on the bonds payable.

31 Accrued interest on the capital lease liability.

31 Amortized the equipment acquired by the capital lease. The company uses the double-
declining-balance method.

31 Market values of short-term investments: TELUS Corporation shares, $84,000, and ATCO
Ltd. shares, $93,000.

31 Accrued income tax expense of $240,000. Credit the Income Tax Payable account.

31 Closed all revenues, expenses, and losses to Retained Earnings in a single closing entry.

31 Declared a quarterly cash dividend of $2.25 per share on the preferred shares. Record date
is January 11, 2018, with payment scheduled for January 19.

Required

1. Record these transactions in the general journal. Explanations are not required. Disregard
commissions.

2. Prepare a single-step income statement for the quarter ended December 31, 2017, including
earnings per share. (Use T-accounts to calculate account balances.)

3. Report the liabilities and the shareholders' equity as they would appear on the balance sheet
at December 1, 2017.

Greyhawk Investments Inc s articles of incorporation authorize the company to

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