Learning Objective 2 E-F:13-23 Journalizing issuance of stock and preparing the stockholders' equity section of the balance sheet 2. Total Stockholders' Equity $94,500 The charter for ASAP-TV, Inc. authorizes the company to issue 100,000 shares of $5, no-par preferred stock and 500,000 shares of common stock with $1 par value. During its start-up phase, ASAP-TV completed the following transactions: Sep. 6 12 14 Issued 550 shares of common stock to the promoters who organized the corporation, receiving cash of $16,500. Issued 400 shares of preferred stock for cash of $23,000. Issued 1,500 shares of common stock in exchange for land with a market value of $17,000. Requirements 1. Record the transactions in the general journal. 2. Prepare the stockholders' equity section of the ASAP-TV balance sheet at September 30, 2024, assuming ASAP-TV, Inc. had net income of $38,000 for the month.

Learning Objective 2 E-F:13-23 Journalizing issuance of stock and preparing the stockholders' equity section of the balance sheet 2. Total Stockholders' Equity $94,500 The charter for ASAP-TV, Inc. authorizes the company to issue 100,000 shares of $5, no-par preferred stock and 500,000 shares of common stock with $1 par value. During its start-up phase, ASAP-TV completed the following transactions: Sep. 6 12 14 Issued 550 shares of common stock to the promoters who organized the corporation, receiving cash of $16,500. Issued 400 shares of preferred stock for cash of $23,000. Issued 1,500 shares of common stock in exchange for land with a market value of $17,000. Requirements 1. Record the transactions in the general journal. 2. Prepare the stockholders' equity section of the ASAP-TV balance sheet at September 30, 2024, assuming ASAP-TV, Inc. had net income of $38,000 for the month.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 41E: Exercise 1-41 Stockholders Equity OBJECTIVE o On January 11 2019, Mulcahy Manufacturing Inc., a...

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Exercise 1-41 Stockholders Equity OBJECTIVE o On January 11 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000 shares of common stock in exchange for $150,000 cash. No other shares were issued during 2019, and no shares were repurchased by the corporation. On November 1, 2019, the corporations major stockholder sold 300 shares to another stockholder for $50000. The corporation reported net income of $37,500 for 2019. Required: Prepare the stockholders equity section of Mulcahys balance sheet at December 31, 2019.
(Learning Objective 6: Report stockholders’ equity) Doorman Corp. has thefollowing stockholders’ equity information:Doorman’s charter authorizes the company to issue 9,000 shares of 8% preferred stockwith par value of $120 and 700,000 shares of no-par common stock. The company issued 1,800shares of the preferred stock at $120 per share. It issued 140,000 shares of the common stockfor a total of $513,000. The company’s retained earnings balance at the beginning of 2018 was$77,000, and net income for the year was $94,000. During 2018, Doorman declared the specified dividend on preferred and a $0.20 per-share dividend on common. Preferred dividends for2017 were in arrears.Requirement1. Prepare the stockholders’ equity section of Doorman Corp.’s balance sheet at December 31,2018. Show the computation of all amounts. Journal entries are not required.
(Learning Objective 2: Record issuance of stock for cash and for services) AttorneyKristen Maloney invoiced Dunn for $20,400 and has agreed to accept 1,500 shares of its$0.01 par-value common stock in full payment for this invoice. Dunn issued the common stockto Attorney Maloney on January 29. Record the stock-issuance transaction for Dunn
Learning Objective 6: Report stockholders’ equity) Lima Corp. has the followingstockholders’ equity information:Lima’s charter authorizes the company to issue 4,000 shares of 11% preferred stock withpar value of $200 and 700,000 shares of no-par common stock. The company issued 1,000shares of the preferred stock at $200 per share. It issued 350,000 shares of the common stockfor a total of $512,000. The company’s retained earnings balance at the beginning of 2018 was$75,000, and net income for the year was $100,000. During 2018, Lima declared the specifieddividend on preferred and a $0.10 per-share dividend on common. Preferred dividends for 2017were in arrears.Requirement1. Prepare the stockholders’ equity section of Lima Corp.’s balance sheet at December 31,2018. Show the computation of all amounts. Journal entries are not required.
(Learning Objective 2: Describe the effect of a stock issuance on paid-in capital)Saltwell Industries received $11,500,000 for the issuance of its stock on May 14. The par valueof the Saltwell stock was only $11,500. Was the excess amount of $11,488,500 a profit to Saltwell? If not, what was it?Suppose the par value of the Saltwell stock had been $2 per share, $4 per share, or $7 pershare. Would a change in the par value of the company’s stock affect Saltwell’s total paid-incapital? Give the reason for your answer.
Search Textbook Solutio x y M A201 Final Exam Fall 20 x C O ezto.mheducation.co hm.tpx IThe following information applies to the questions displayed below. Tarrant Corporation was organized this year to operate a financial consulting business. The charter authorized the following stock: common stock, par value $17 per share, 13,400 shares authorized. During e year, the following selected transactions were completed: Sold and Issued 6,800 shares of common stock for cash at $34 per share. b. Sold and Issued 1700 shares of common stock for cash at $39 per share 12. Required information Required: 1. Prepare the journal entries required to record the sale of common stock in (a) and (b). (If no entry ls required for a transaction/event, select "No Journal entry required In the first account field.) view transaction list view general journal Journal Entry Worksheet 0 2 sold 6,800 shares of common stock for cash at $34 per share Debit Credit Transaction General Jouma
(Learning Objectives 2, 6: Account for stock issuance; report stockholders’equity) The partners who own Jefferson Rafts Co. wished to avoid the unlimited personalliability of the partnership form of business, so they incorporated as Jefferson Rafts, Inc. Thecharter from the state of Vermont authorizes the corporation to issue 200,000 shares of $15 parcommon stock. In its first month, Jefferson Rafts, Inc., completed the following transactions:Jan 6 Issued 900 shares of common stock to the promoter forassistance with issuance of the common stock. The promotionalfee was $27,000. Debit Organization Expense.9 Issued 4,000 shares of common stock to Lindsey Crow and 14,000shares to Jackie Jefferson in return for cash equal to the stock’s marketvalue of $20 per share. The two women were partners in Jefferson Rafts Co.26 Issued 1,600 shares of common stock for $25 cash per share.Requirements1. Record the transactions in the journal.2. Prepare the stockholders’ equity section of the Jefferson…
(Learning Objectives 2, 6: Account for stock issuance; report stockholders’equity) The partners who own Crew Kayaks Co. wished to avoid the unlimited personalliability of the partnership form of business, so they incorporated as Crew Kayaks, Inc. Thecharter from the state of Nevada authorizes the corporation to issue 125,000 shares of $15 parcommon stock. In its first month, Crew Kayaks, Inc., completed the following transactions:Oct 6 Issued 600 shares of common stock to the promoter forassistance with issuance of common stock. The promotionalfee was $12,000. Debit Organization Expense.9 Issued 10,000 shares of common stock to Lucy Littleton and18,000 shares to Danielle Dunaway in return for cash equal to thestock’s market value of $18 per share. The two women werepartners in Crew Kayaks Co.26 Issued 900 shares of common stock for $21 cash per share.Requirements1. Record the transactions in the journal.2. Prepare the stockholders’ equity section of the Crew Kayaks, Inc., balance sheet…