Entries for Issuing Stock On January 22, Shamrock Corpora shares of preferred 6% stock, $75 Journalize the entries to record th Jan. 22 Feb. 14 Aug. 30
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A: Treasury stock=Number of shares×Per share value=5,100×$64=$326,400
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A: a. Prepare journal entries for declaration:
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A: Securities Premium Reserve is an account that represents the paid in capital in excess of par. It is…
Q: Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake…
A: a.
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A: No. of shares issued under stock dividend = Number of outstanding shares x 13% = 55,000 shares x 13%…
Q: Treasury Stock Transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the…
A:
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A: Definition:
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A: The 10% stock dividend is a small stock dividend and hence it shall be recorded at the market value.
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A: Stock dividend = No. of shares outstanding x rate of stock dividend x market price of the stock =…
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A: Stock dividend is a method of capitalizing the retained earning. Under this, no profit is…
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Q: STOCK DIVIDENDS Martinez Company currently has 200,000 shares of $1 par common stock outstanding. On…
A: The dividend to the shareholders is declared from the retained earnings of the business and can be…
Q: Pro-Builders Corporation has 1,500,000 shares of $5 par common stock outstanding. On September 2,…
A: Stock Dividends: It refers to the payment of dividends by a company to its existing shareholders, in…
Q: Epic Inc. has 10,000 shares of $2 par value common stock outstanding, Epic declares a 5% stock…
A: Dividends: This is the amount of cash distributed to stockholders by a company out its earnings,…
Q: Entries for Stock Dividends Alpine Energy Corporation has 1,500,000 shares of $10 par common stock…
A: Journal entry:
Q: Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake…
A: A company may choose to buy back its own issued and outstanding shares from the market. Management…
Q: Entries for Stock Dividends Paris Corporation has 15,000 shares of $90 par common stock…
A: The dividend is a method of distributing profit to the stockholders but the Stock dividend is a…
Q: Epic Inc. has 10,000 shares of $2 par value common stock outstanding. Epic declares a 5% stock…
A: Market value of stock dividend = No. of common stock outstanding x market value par share x % of…
Q: Prepare journal entries for each of the following transactions
A: 1. When the dividend is declared on shares then its liability needs to be recognized in the books.…
Q: 3. Bungy Dive Inc. has 80,000 shares of $35 par common stock outstanding. On June 8, Bungy declared…
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A: Dividend :- This can be best understood with the help of an illustration. A person with surplus…
Q: The stockholders' equity section of Jun Co.'s balance sheet as of April 1 follows. On April 2, Jun…
A: (1) Increase in common stock = (200,000 Shares x 10%) x 5 par value = $100,000 (2) Decrease in…
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A: 1)Shares issued: = Common stock account/ $2 par = $150,000/2 = 75,000 shares Shares outstanding:…
Q: Madrid Corporation has 25,000 shares of $80 par common stock outstanding. On August 2, Madrid…
A: Journal entry: It is the recording of financial and non-financial transactions of the organisation.…
Q: Entries for stock dividends Pro-Builders Corporation has 1,500,000 shares of $5 par common stock…
A: Stock dividend means when instead of cash, shares of the company are distributed as dividends to the…
Q: April Issued 5,000 share of Common Stock, $2 par for $17 per share. Record the journal entry.
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Q: On December 1, 20×1, Entity A purchased 6,000 shares of its own common stock at $25 per share. Par…
A: We have the following information: Purchased 6,000 shares of it own common stock Purchase price:…
Q: Bonneau Corporation has 100,000 shares of $10 par common stock outstanding. On July 31, the Board of…
A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…
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A: Prepare the journal entries: Date Account title and explanation Debit Credit 22-Jan…
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A: Step 1 Journal is the part of the book keeping.
Q: Treasury Stock Transactions Mystic Lake Inc. bottles and distributes spring water. On July 9 of the…
A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…
Q: Belkin Inc. has 100,000 shares of $3 par value common stock outstanding. Belkin declares a 40% stock…
A: Amount for Stock dividend = No. of shares outstanding x Stock dividend rate x Par value per share =…
Q: Feb 19th, issued 9,000 preferred shares for cash at $45 per share. The par value of preferred stock…
A: Given that, issued 9,000 preferred shares issue price = $45 Par value per share = $5
Q: Issuing Common Stock Palan Products Inc. sold 46,750 shares of common stock to stockholders at the…
A: Common stock is an equity . It is type of stock which is issued to majority of shareholder in a…
Q: Mystic Lake Inc. bottles and distributes spring water. On July 9 of the current year, Mystic Lake…
A: Solution a: Journal Entries for the transactions of July 9, September 22, and November 23 are as…
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- Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. (a)Received 20,000 for the balance due on subscriptions for preferred stock with a par value of 40,000 and issued the stock. (b)Purchased 10,000 shares of common treasury stock for 18 per share. (c)Received subscriptions for 10,000 shares of common stock at 19 per share, collecting down payments of 45,000. (d)Issued 15,000 shares of common stock in exchange for land with a fair market value of 290,000. (e)Sold 5,000 shares of common treasury stock for Si00,000. (f)Issued 10,000 shares of preferred stock at 11.50 per share, receiving cash. (g)Sold 3,000 shares of common treasury stock for 17 per share. REQUIRED 1. Prepare general journal entries for the transactions, identifying each transaction by letter. 2. Post the journal entries to appropriate T accounts. The cash account has a beginning balance of 300,000. 3. Prepare the stockholders equity section of the balance sheet as of December 31, 20--. Net income for the year was 825,000 and dividends of 400,000 were paid.A company issued 40 shares of $1 par value common stock for $5,000. The journal entry to record the transaction would include which of the following? A. debit of $4,000 to common stock B. credit of $20,000 to common stock C. credit of $40 to common stock D. debit of $20,000 to common stockSelected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 2016, were as follows: a. Issued 15,000 shares of 20 par common stock at 30, receiving cash. b. Issued 4, 000 shares of 80 par preferred 5% stock at 100, receiving cash. c. Issued 500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of 0.50 per share on common stock and 1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at 40 per share, plus a 150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at 33 per share. h. Purchased 40,000 shares of Pinkberry Co. stock directly from the founders for 24 per share. Pinkberry has 125,000 shares issued and outstanding. Equinox Products Inc. treated the investment as an equity method investment. i. Declared a 1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. j. Paid the cash dividends to the preferred stockholders. k. Received 27,500 dividend from Pinkberry Co. investment in (h). l. Purchased 90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of 37 5. The bonds are classified as a held-to-maturity long -term investment. m. Sold, at 38 per share, 2,600 shares of treasury common stock purchased in (g). n. Received a dividend of 0 .60 per share from the Solstice Corp. investment in (f). o. Sold 1,000 shares of Solstice Corp. at 45, including commission. p. Recorded the payment of semiannual interest on the bonds issue d in (c) and the amortization of the premium for six months. The amortization is determined using the straight-line method . q. Accrued interest for three months on the Dream Inc. bonds purchased in (I). r. Pinkberry Co. recorded total earnings of 240 ,000. Equinox Products recorded equity earnings for its share of Pinkberry Co. net income. s. The fair value for Solstice Corp. stock was 39. 02 per share on December 31, 2016. The investment is adjusted to fair value , using a valuation allowance account. Assume Valuation Allowance for Available-for-Sale Investments h ad a beginning balance of zero. Instructions 1. Journalize the selected transactions. 2. After all of the transaction s for the year ended December 31, 201 6, had been poste d [including the transactions recorded in part (1) and all adjusting entries), the data that follows were taken from the records of Equinox Products Inc. a. Prepare a multiple-step in come statement for the year ended December 31, 201 6, concluding with earnings per share . In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were 100,000. ( Round earnings per share to the nearest cent.) b. Prepare a retained earnings statement for the year ended December 31, 20 6. c. Prepare a balance sheet in report form as of December 31, 2016.
- 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.STOCKHOLDERS EQUITY SECTION After closing its books on December 31, Pro Parts stockholders equity accounts had the following balances: Common stock subscriptions receivable 5,000 Common stock, 5 par, 12,000 shares 60,000 Preferred stock, 10 par, 4%, 4,000 shares 40,000 Common stock subscribed, 5 par, 3,000 shares 15,000 Paid-in capital in excess of par-common stock 4,000 Retained earnings 35,000 Prepare the stockholders equity section of the balance sheet.PAR AND NO-PAR, COMMON AND PREFERRED STOCK Valdez Company had the following stock transactions during the first 5 years of operations: (a) Issued 24,000 shares of 1 par common stock for 26,000 cash. (b) Issued 18,000 shares of 1 par common stock for 18,000 cash. (c) Issued 3,000 shares of 10 par, 7% preferred stock for 30,000 cash. (d) Issued 4,500 shares of 10 par, 7% preferred stock for 46,500 cash. (e) Issued 1,800 shares of no-par common stock for 10,475 cash. (f) Issued 1,100 shares of no-par, 7 preferred stock for 32,000 cash. REQUIRED 1. Prepare general journal entries for these transactions, identifying each by letter. 2. Assume that stock transactions a, b, and c occurred in year 1. The amount available for dividends at the end of year 1 is 12,600. Prepare the dividend allocation between the preferred and common shares in total and per share for year 1.
- STOCKHOLDERS EQUITY SECTION After closing its books on December 31, Mel Brothers stockholders equity accounts have the following balances: Common stock subscriptions receivable 6,000 Common stock, 6 par, 15,000 shares 90,000 Preferred stock, 10 par, 8%, 10,000 shares 100,000 Common stock subscribed, 6 par, 5,000 shares 30,000 Retained earnings 50,000 Prepare the stockholders equity section of the balance sheet.STOCK SUBSCRIPTIONS Athletics West had the following stock transactions during the year: (a) Received subscriptions for 100,000 shares of 1 par common stock for 118,000. (b) Received subscriptions for 5,000 shares of 18 par, 7% preferred stock for 92,000. (c) Received a payment of 59,000 on the common stock subscription. (d) Received a payment of 46,000 on the preferred stock subscription. (e) Issued 60,000 shares of 1 par common stock in exchange for a truck with a fair market value of 66,000. (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.PAR AND NO-PAR, COMMON AND PREFERRED STOCK Hernandez Company had the following stock transactions during its first 5 years of operations: (a) Issued 25,000 shares of 1 par common stock for 25,000 cash. (b) Issued 20,000 shares of 1 par common stock for 22,000 cash. (c) Issued 2,000 shares of 50 par, 8% preferred stock for 100,000 cash. (d) Issued 1,000 shares of 50 par, 8% preferred stock for 51,500 cash. (e) Issued 2,500 shares of no-par common stock for 11,875 cash. (f) Issued 1,500 shares of no-par, 7 preferred stock for 72,000 cash. REQUIRED 1. Prepare general journal entries for these transactions, identifying each by letter. 2. Assume that stock transactions a, b, and c occurred in year 1. The amount available for dividends at the end of year 1 is 26,000. Prepare the dividend allocation between the preferred and common shares in total and per share for year 1.
