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: Jan. 31 Issued 38,000 shares at $9 share. Jun. 10 Issued 120,000 shares in exchange for land with a clearly determined value of $830,000. Aug. 3 Purchased 10,000 shares of treasury stock at $8 per share. A. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Jan. 31   __________ __________     __________ __________     __________ __________ Jun. 10   __________ __________     __________ __________     __________ __________ Aug. 3   __________ __________     __________ __________ B. Calculate how many shares of stock are outstanding at August 3. __________ shares

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 5EA: Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first...
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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:

Jan. 31 Issued 38,000 shares at $9 share.
Jun. 10 Issued 120,000 shares in exchange for land with a clearly determined value of $830,000.
Aug. 3 Purchased 10,000 shares of treasury stock at $8 per share.

A. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank.

Jan. 31   __________ __________
    __________ __________
    __________ __________
Jun. 10   __________ __________
    __________ __________
    __________ __________
Aug. 3   __________ __________
    __________ __________

B. Calculate how many shares of stock are outstanding at August 3.

__________ shares

 

 

 

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:
Jan. 31 Issued 38,000 shares at $9 share.
Jun. 10 Issued 120,000 shares in exchange for land with a clearly determined value of $830,000.
Aug. 3
Purchased 10,000 shares of treasury stock at $8 per share.
A. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank.
Jan. 31
Jun. 10
Aug. 3
B. Calculate how many shares of stock are outstanding at August 3.
shares
Transcribed Image Text: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: Jan. 31 Issued 38,000 shares at $9 share. Jun. 10 Issued 120,000 shares in exchange for land with a clearly determined value of $830,000. Aug. 3 Purchased 10,000 shares of treasury stock at $8 per share. A. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Jan. 31 Jun. 10 Aug. 3 B. Calculate how many shares of stock are outstanding at August 3. shares
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