E11-5 Mesa Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's capital stock. 000.000 00018 May 2 104,000 Cash Capital Stock (Issued 8,000 shares of $10 par value 181odrcommon stock at $13 per share) 104,000 TIOS 10 Cash 530,000 mowwf.co 530,000 Capital Stock (Issued 10,000 shares of $20 par value ala 12 preferred stock at $53 per share) 000.0 15 Capital Stock Cash (ls लि 7,200 000 00 7,200 029 (Purchased 600 shares of common stock for the treasury at $12 per share) ndz 090.04 000,00 000.000 Instructions On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions.

E11-5 Mesa Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's capital stock. 000.000 00018 May 2 104,000 Cash Capital Stock (Issued 8,000 shares of $10 par value 181odrcommon stock at $13 per share) 104,000 TIOS 10 Cash 530,000 mowwf.co 530,000 Capital Stock (Issued 10,000 shares of $20 par value ala 12 preferred stock at $53 per share) 000.0 15 Capital Stock Cash (ls लि 7,200 000 00 7,200 029 (Purchased 600 shares of common stock for the treasury at $12 per share) ndz 090.04 000,00 000.000 Instructions On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 9P: Comprehensive Young Corporation has been operating successfully for several years. It is authorized...

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Indigo Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation’s capital stock. May 2 Cash 112,500 Capital Stock 112,500 (Issued 7,500 shares of $12 par value common stock at $15 per share) 10 Cash 765,000 Capital Stock 765,000 (Issued 15,000 shares of $16 par value preferred stock at $51 per share) 15 Capital Stock 7,900 Cash 7,900 (Purchased 790 shares of common stock for the treasury at $10 per share) On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions.
Concord Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation’s capital stock. Date Account Titles and Explanation Debit Credit May 2 Cash 208,000 Capital Stock 208,000 (Issued 13,000 shares of $ 5 par value common stock at $ 16 per share) May 10 Cash 660,000 Capital Stock 660,000 (Issued 11,000 shares of $ 30 par value preferred stock at $ 60 per share) May 15 Capital Stock 14,400 Cash 14,400 (Purchased 900 shares of common stock for the treasury at $ 16 per share) May 31 Cash 13,500 Capital Stock 7,500 Gain on Sale of Stock 6,000 (Sold 750 shares of treasury stock at $…
E14-21 In 2022, Amber Wilson, owner of Canyon Canoe Company, started a new company that will be operated as a corporation, Outdoor Equipment Incorporated (OEI) This company sells outdoor equipment. The articles of incorporation for OEI authorized the company to issue 500,000 preferred shares that pay a dividend of $4.00 per year and 1,000,000 common shares On January 1, 2023, the 2,000 preferred shares had a balance of $70,000 the 50,000 common shares had a balance of $200,000, and the retained earnings balance was $402,000 In January 2023, OEI has the following transactions related to its common shares Jan 3 The company sold 1,000 of its common shares for $8.00per share to a small number of people who believe in the company's potential for profit Jan 20 The company repurchased 100 of its common shares for $10.00 per share from a shareholder who was having financial difficulties Jan 30 The company sold 100 common shares for $12.00 per share Required 1) Journalize the entries related to…
Can you also answer this? The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information. a. Issued 40% shares of class A common stock. Stock has par value of $45 per share and was issued at $62 per share. b. Issued 40% shares of no-par class B stock. (Issue price is at $60.00) C. Issued 30% shares of preferred stock at par value (Par value - $125). d. Exchanged 40% shares of class A common stock…
NEED ASAP. Solve correctly and show your computations. The Corporation shareholders’ equity section of the Statement of Financial Position includes the following accounts and balances: Ordinary Share Capital, P100 par, 5,000 shares issued P500,000 Ordinary Share Premium 50,000 Retained earnings 750,000 Assuming a major shareholder donated 5,000 shares when the market value of the share capital was P140 per share, and was recorded as a debit to Treasury Shares and credit to Donated Capital. How much was the increase (decrease) in the total Additional Paid In Capital? Put a parenthesis if your answer is decrease.
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash P 28,000Other Assets 256,000Liabilities 50,000Alpha Capital 180,000Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o 10,000 shares of 12% Preference Share Capital, par P 100; ando 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription.…
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash            P 28,000Other Assets            256,000Liabilities            50,000Alpha Capital            180,000Omega Capital            54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o      10,000 shares of 12% Preference Share Capital, par P 100; ando      20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription.How much is the…
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash            P 28,000Other Assets            256,000Liabilities            50,000Alpha Capital            180,000Omega Capital            54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o      10,000 shares of 12% Preference Share Capital, par P 100; ando      20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription. Refer to…
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash            P 28,000Other Assets            256,000Liabilities            50,000Alpha Capital            180,000Omega Capital            54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o      10,000 shares of 12% Preference Share Capital, par P 100; ando      20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription.…
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash P 28,000Other Assets 256,000Liabilities 50,000Alpha Capital 180,000Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o 10,000 shares of 12% Preference Share Capital, par P 100; ando 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription.…
On the date of incorporation, the condensed balance sheet of Alom Partnership showed the following: Cash P 28,000Other Assets 256,000Liabilities 50,000Alpha Capital 180,000Omega Capital 54,000 The Securities and Exchange Commission authorized the corporation to issue the following shares: o 10,000 shares of 12% Preference Share Capital, par P 100; ando 20,000 shares of Ordinary Share Capital, par P 50. The corporation issued 1,500 preference shares and 800 ordinary shares to Alpha in exchange for her equity in the partnership. On the other hand, Omega received 1,500 preference shares and 1,200 ordinary shares for her equity in the partnership. Any capital deficiency of the partners will be paid in cash. Three other incorporators each subscribed at par, 1,500 preference shares and 2,000 ordinary shares paying only 25% of their subscriptions and the balance payable in two months from the date of subscription.…
The company is desirous of comparing serval financial transactions and possible outcomes to assist in guiding its decision-making process. It is assumed that the company will be formed on January 1, 2021 and registered as Osbourne Corporation. The company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. Issued 65,000 shares of common stock. Stock has par value of 0.40 per share and was issued at $30 per share Issued 10,000 shares of preferred stock at par value as payment in exchange for legal services Exchanged 200,000 shares of common stock for land with an appraised value of $ 500,000 and a building with an appraised value of $700,000. Earned Net income $750,000. Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide: Prepare Osbourne Corporation Stockholders equity section of the balance sheet at December 31, 2021.…