Ludwig Inc. began a very lucrative consulting operation on October 1, 2014. They are authorized to issue 400,000 shares of $4.00 cumulative preferred shares. They are also authorized to issue 600,000 common shares. a. October 10 : 14,000 of the preferred shares were issued for a total of $19,600 cash. b. October 11 : Gave the corporation's promoters 14,000 common shares for their services in organizing the corporation. The directors valued the services at $57,000. c. October 17 : 6,000 common shares were issued in exchange for land valued at $24,000. d. October 24 :5,000 of the common shares were issued for a total of $50,000 cash. e. October 25 : Issued 12,000 preferred shares at $5.61 per share for cash. f. October 31: In addition to the declaration of the annual dividend on the preferred shares, dividends of $47,500 were declared on the common shares today. Prepare journal entries for the above transactions, entering the transaction letter as the explanation. Also, enter dates in the format dd/mmm (ie. 15/Jan). General Journal Page GJ1 Date Account/Explanation F Debit Credit + =

Ludwig Inc. began a very lucrative consulting operation on October 1, 2014. They are authorized to issue 400,000 shares of $4.00 cumulative preferred shares. They are also authorized to issue 600,000 common shares. a. October 10 : 14,000 of the preferred shares were issued for a total of $19,600 cash. b. October 11 : Gave the corporation's promoters 14,000 common shares for their services in organizing the corporation. The directors valued the services at $57,000. c. October 17 : 6,000 common shares were issued in exchange for land valued at $24,000. d. October 24 :5,000 of the common shares were issued for a total of $50,000 cash. e. October 25 : Issued 12,000 preferred shares at $5.61 per share for cash. f. October 31: In addition to the declaration of the annual dividend on the preferred shares, dividends of $47,500 were declared on the common shares today. Prepare journal entries for the above transactions, entering the transaction letter as the explanation. Also, enter dates in the format dd/mmm (ie. 15/Jan). General Journal Page GJ1 Date Account/Explanation F Debit Credit + =

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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Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
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