Answered: a) Record the journal entry for the…

Business

Accounting

a) Record the journal entry for the initial transaction. b) What is the Journal entry at the time of the final payment?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 6EA: James Incorporated is authorized to issue 5,000,000 shares of $1 par value common stock. In its...

See similar textbooks

Related questions

Q: Empresas La Sierra presents the following information: • On January 5, the company issues 25,000…

A: Journal: It refers to an account which shows all the financial transactions pertaining to a…

Q: Oregon Outfitters issues 1,700 shares of $1 par value common stock at $19 per share. Later in the…

A: The extra cash received is credited to the Paid-in capital in excess of par Account.

Q: California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $27 per share.…

A: Treasury stock: Shares which are bought back by the company from the open market are Treasury stock.…

Q: Shamrock Ltd had the following shareholders' equity on December 31, 2021: Common shares, 2,800,000…

A: Common share: It is an equity share. These shareholders are the owners of the company and have…

Q: In January 2019, ABC Limited called for subscriptions for 12 millions of shares. The issue price per…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Riverbed Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Journal entries refer to the process of systematic documentation of the financial transactions of a…

Q: Knicks Corporation was organized on January 1, 2018 with authorized capital of P 2,000,000, P 20 par…

A: Formula: Amount = 25 % shares subscribed x Each share issue price.

Q: Rip-Off Fuels Inc. is an operator of gas stations. On March 1, 2022, they issued subscriptions for…

A: The circumstance in which the allotted shares are canceled by the issuing firm due to non-payment of…

Q: Will Bhd closes its accounts on 31 December annually. On 2 January 2020, the company offered…

A: Oversubscription of shares refers to a situation where a company receives more number of…

Q: Accepts a subscription contract to 7,000 shares of common stock at $42 per share and receives a 30%…

Q: Righty, Inc., entered into a stock subscription contract that called for the purchase by investors…

A: No of shares subscribed = 10,000 shares Par value of common stock = 10,000 x $ 10 = $100,000…

Q: On September 12, 2,000 shares of Aspen Company are acquired at a price of $50 per share plus a $200…

A: Journal entry refers to the recording made by the business in the books of accounts, of all the…

Q: Skysong Inc. issues 500 shares of $ 10 par value common stock and 100 shares of $ 100 par value…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Red Corporation had the following transactions related period January to June 2021. Red Corporation…

A: Shares are issued to raise capital for the company. The holders of shares benefit when the value of…

Q: On 30 April, MBC Company issued 60 000 shares for $12 each, payable $4 on application, $4 on the…

A: Share Issued = 60,000 shares Share Subscribed = 60,000 - 10,000 = 50,000 shares Share Application…

Q: Rip-Off Fuels Inc. is an operator of gas stations. On March 1, 2022, they issued subscriptions for…

A: Journal entries shows the recording of transaction during an accounting year

Q: Sloan Co. issued 1,000 shares of its P5 par ordinary share to Mercy West as compensation for 1,000…

A: The share premium is the amount received on issuance of share in excess to the face value of shares.

Q: X Company made the following transactions: Received subscription of 10,000 preference shares with…

A: Preference shares are shares which don't have voting right but enjoys first right to receive…

Q: On January 23, 10,000 shares of Tolle Company are acquired at a price of $30 per share plus a $100…

A: Stock investments: Stock investments are equity securities which claim ownership in the investee…

Q: ICOT Industries issued 15 million of its $1 par common shares for $440 million on April 11. Legal,…

A: The answer is as fallows

Q: 1: The following accounts appear in the trial balance of DAVAO EAGLE Corporation as of December 31,…

A: 13. Authorized shares are the maximum number of shares a company is allowed to issue to shareholders…

Q: Ivanhoe Corporation issued 341 shares of $10 par value common stock and 145 shares of $50 par value…

A: Journal entry to record the issuance:: Cash account Dr::$19188... To Common stock…

Q: On September 1, RAZZIL issued 3,000 shares with par value of P50 par ordinary shares to Atty. Rigor…

A: Share capital means the amount of share that has been issued to shareholder . Share premium means…

Q: On August 1, 2014 ABC Corporation was authorized to issue 150,000 ordinary shares and 100,000 8%…

A: Stockholder Equity- It refers to the equity stake presently possessed by the organization which is…

Q: Shrek Inc., had issued subscriptions for common shares on March 1, 2020. 40% of the subscription was…

A: Shares: Shares are the units of the total stock of a company that shows the fractional ownership of…

Q: diluted earnings per share ratio.

A: Diluted EPS: Diluted EPS is an option what If the Convertible preference share, options are…

Q: On August 1, 2019, Kobe Corporation received subscription for 7,000 shares of Ordinary Share…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: Next Level Morgan Corporation issues 500 “packages” of securities for $180 per package on December…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: A company receives a subscription for 4,000 shares of $1 par value common stock at $10 per share.…

A: given that, company receives a subscription for 4,000 shares par value per share = $1…

Q: On January 23, 15,000 shares of Tolle Company are acquired at a price of $25 per share plus a $145…

A: Introduction: A journal entry is used to disclose a business deal in a company's accounting records.…

Q: By what amount should the share premium account increase as a result of the transaction? Show your…

A: The organization can raise funds for the operation by issuing common stock, preferred stock for long…

Q: FPJ Inc. received subscription for 5,250 Preference Shares at P 10 above par value of P 200 per…

A: Common shares and Preference shares are two type of shares being issued by the company for raising…

Q: Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and…

A: Journal entries in the books of LODI COMPANY: DATE/NO PARTICULARS DEBIT $ CREDIT $ 1. Cash dr (…

Q: ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The…

A: Given: ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January…

Q: 1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common.…

A: Note - First two parts of Q-14 have been solved . Please post a separate question for rest of the…

Q: California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $23 per share.…

A: Treasury stock: Shares which are bought back by the company from the open market are called…

Q: Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and…

A: Journal entries in the books of LODI COMPANY: DATE/NO PARTICULARS DEBIT $ CREDIT $ 1. Cash dr…

Q: What journal entry may result for the following using memorandum entry? * On January 1, 2011, AM…

A: At the time of issue of shares, generally company receives cash amount in exchange of the common…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: Right shares : There are various sources from which the corporation can finance their…

Q: Worldwide Company was authorized to issue 10,000 preference shares of P200 par value and 100,000…

A: Calculation of share premium - Preference: Premium per share: Received 225 Less: Par 200…

Q: BFAR Corp.'s 3,000 preference shares with a par value of P10 per share were subscribed for P18 per…

A: Highest bidder is to pay unpaid balance of subscription amount plus accrued interest plus all…

Q: ABC Co. issued a prospectus for the issue of 900,000shares at $6 per shares on 1 January 2019. The…

A: a) Journal entry:

Q: Blossom Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value…

A: Workings:

Q: Righty, Inc., entered into a stock subscription contract that called for the purchase by investors…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and…

A: Step 1 Journal is the part of book keeping.

Q: ayan Inc. has been authorized to issue 125,000 shares of P10 par ordinary shares. The following 2019…

A: A Company issues capital by issuing stocks of par value which can be issued at premium. By giving…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: The right shares refer to the shares issued to the existing shareholders. The right shares are the…

Q: Worldwide Company was authorized to issue 10,000 preference shares of $200 par value and 10,000…

A: Answer and calculations are given below

Question

ABS Corp. received subscriptions for 45,200 shares of $75 par value common stock at $105 per share. ABS required an initial payment of 35% of the subscription price.

a) Record the journal entry for the initial transaction.

b) What is the Journal entry at the time of the final payment?

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.
Prepare general journal entries for the following transactions of GOTE Company: (a) Received subscriptions for 10,000 shares of 2 par common stock for 80,000. (b) Received payment of 30,000 on the stock subscription in transaction (a). (c) Received the balance in full for the stock subscription in transaction (a) and issued the stock. (d) Purchased 1,000 shares of its own 2 par common stock for 7.50 a share. (e) Sold 500 shares of the stock on transaction (d) for 8.50 a share.
Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first year, the company has the following transaction: Mar. 1, issued 40,000 shares of preferred stock at $20.50 per share. Journalize the transaction.
James Incorporated is authorized to issue 5,000,000 shares of $1 par value common stock. In its second year of business, the company has the following transactions: Journalize the transactions.
St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and 5,000,000 shares of $1 stated value common stock. During the year, the company has the following transactions: Journalize the transactions.
Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions: Journalize the transactions and calculate how many shares of stock are outstanding at August 3.
Anslo Fabricating, Inc. is authorized to issue 10,000,000 shares of $5 stated value common stock. During the year, the company has the following transactions: Journalize the transactions.
Sun Corporation issues 500 shares of 8 par common stock for a patent. The stock is currently selling for 37 per share on the open market, and no significant impact on the market price is expected by the issuance of the additional shares. Prepare the journal entry to record this transaction.
Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Apr. 10, issued 1,000 shares of stock for legal services valued at $15,000. Journalize the transaction.
Brown Corporation issues 800 shares of its 5 par common stock for 20 per share. Prepare the journal entry to record this transaction.
STOCK SUBSCRIPTIONS Juneau Associates had the following stock transactions during the year: (a) Received subscriptions for 100,000 shares of 1 par common stock for 105,000. (b) Received subscriptions for 5,000 shares of 15 par, 8% preferred stock for 80,000. (c) Received a payment of 55,000 on the common stock subscription. (d) Received a payment of 40,000 on the preferred stock subscription. (e) Issued 40,000 shares of 1 par common stock in exchange for a truck with a fair market value of 48,000. (f) Received the balance in full for the common stock subscription and issued the stock. (g) Received the balance in full for the preferred stock subscription and issued the stock. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.
Subscriptions On August 3, 2019, the date of incorporation, Quinn Company accepts separate subscriptions for 1,000 shares of 100 par preferred stock at 104 per share and 9,000 shares of 110-par, no-stated-value common stock for 22 per sl1are. The subscription contracts require a 10% down payment, with the balance due by November 1, 2019. Shares are issued to each subscriber upon full payment. On November 1, Quinn received the remaining balances for the shares of preferred stock and common stock. Required: Prepare journal entries to record all the transactions related to: 1. the preferred stock 2. the common stock