Prepare entries to record the transactions for Maine Corp.: (a) Issued 2,000 shares of $10 par common stock at $72 for cash. (b) Issued 2,500 shares of common stock in exchange for land with a fair market price of $130,000. (c) Purchased 400 shares of treasury stock at $70. (d) Sold the 400 shares of treasury stock purchased in (c) at $76.
Q: a) During the year, the corporation completed a number of transactions affecting the stockholders'…
A: Journal entry: It is a book of prime entry or a book of original entry in which transactions are…
Q: On May 3, Zirbal Corporation purchased 4,000 shares of its own stock for $36,000 cash. On November…
A: sometime companies purchase share of their own stock from other stock holder of the company. such…
Q: Diamondback Welding & Fabrication Corporation sells and services pipe welding equip- ment in…
A: Prepare journal entries:
Q: The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share.…
A: Paid in capital in excess of par = (Issue price per share - Face value per share) x No. of shares =…
Q: Tamarisk, Inc. had the following transactions during the current period. Mar. 2 Issued 4,900…
A: Journal entries are used to record various transactions which was performed by the business during…
Q: (A) BBS corporation had the following transactions during the current period. March 2 - Issued 5,000…
A: Solutions: Transaction General Journal Debit Credit 02-Mar Organization expense 53000…
Q: Anslo Fabricating, Inc. is authorized to issue 10,000,000 shares of $5 stated value common stock.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Tamarisk, Inc. had the following transactions during the current period. Issued 4,900 shares of $5…
A: Treasury Stock: Treasury Stock is the term that is used to describe shares of a company’s own stock…
Q: Flint Co. had the following transactions during the current period. Mar. 2 Issued 4,100 shares of $6…
A: Increase in assets should be debited. Increase in expense should be debited. Increase in equity…
Q: Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock,…
A: Common Stock - Common Stock is the stock issued to the public for raising capital. This recorded in…
Q: Record each of the following transactions for the Toyota Corporation in general journal form.…
A: Preferred stocks are those stocks for which dividend is paid before other stocks. The preferred…
Q: Metlock, Inc. had the following transactions during the current period. Mar. 2 Issued 4,800…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On May 3, Zirbal Corporation purchased 4,000 shares of its own stock for $36,000 cash. On November…
A:
Q: Prepare the necessary journal entry for each of the following transactions for Nadim Corporation.…
A: Journal entry: Journal entry is a set of economic events that can be measured in monetary terms.…
Q: St. Marie Company is authorized to issue 1,000,000 shares of $5 par value preferred stock, and…
A: Journal entries: Date Account journal Debit $ Credit $ Jan 31 Cash 1,632,000 Common stock…
Q: tock for 35,000 cash 2. A corporation issued 2,000 shares of par common stock to its promotors in…
A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…
Q: On May 3, Zirbal Corporation purchased 5,000 shares of its own stock for $45,000 cash. On November…
A:
Q: Hansen Inc. engaged in the following transactions during the current Hansen Inc. engaged in the…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: On May 3, Zirbal Corporation purchased 5,000 shares of its own stock for $45,000 cash. On November…
A: Treasury stock when shares reissued= (Cost of purchase / Number of shares) * Number of shares…
Q: During the year, the following selected transactions affecting stockholders' equity occurred for…
A: Answer - Working Note : a. Treasury stock (100 shares × $20) = $2,000 b. Cash (60 shares × $21…
Q: Farmers Incorporated issued 6,000 shares of its $10 par value common stock in exchange for land that…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: On April 2 a corporation purchased for cash 6,000 shares of its own $12 par common stock at $28 a…
A: Treasury stock means when company purchases its own shares from its open market.
Q: Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first…
A: • Whenever Common Stock shares are allotted in cash at an amount above its par value, the additional…
Q: Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30…
A: Definition:
Q: Refer to the following transactions. a. Issued 400 shares of $100 par value preferred stock at par.…
A: Financial statements includes: Balance sheet Income statement Cash flow statement Statement of…
Q: Following are the issuances of stock transactions. 1. A corporation issued 2,000 shares of $5 par…
A: According to the given question, we are required to prepare the statement of accounting equation…
Q: a. Prepare all of the necessary journal entries to record the events described above.b. Prepare the…
A: Requirement a: Pass all of the necessary journal entries to record the events.
Q: The company was organized on January 1, Year 1. The firm was authorized to issue 500,0O00 shares of…
A: Shareholder equity means the amount that belong to the owner of the company i.e. share holder.…
Q: Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first…
A: Whenever a company issues common stock, then common stock is credited and cash is debited. If common…
Q: A corporation sold 13,500 shares of its $10 par value common stock at a cash price of $14 per share.…
A: Common Stock - Common Stock is the stock issued to the common shareholder's of the company.
Q: Joe Dumars Company has outstanding 40,000 shares of $5 par common stock which had been issued at $30…
A: Solution Explanation and workings: 1. Purchase 5000 treasury shares at 45 per share. Common Stock -…
Q: Prepare the appropriate general journal entries for the following treasury stock transactions of…
A: Treasury stock refers to a method used by the organization to repurchase the issued stock. It is…
Q: Splish Brothers Inc. had the following transactions during the current period. Mar. 2 Issued…
A: The organization can raise fund for the operation song integrity by issuing common stock, preferred…
Q: The company was organized on January 1, Year 1. The firm was authorized to issue 500,000 shares of…
A: The dividend is paid to the shareholders from the retained earnings of the business. The treasury…
Q: Oriole Inc. had the following transactions pertaining to investments in common stock. Jan. 1…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Tarrant Corporation was organized this year to operate a financial consulting business. The charter…
A: Given information is: Tarrant Corporation was organized this year to operate a financial consulting…
Q: A corporation issues 6,000 shares of $5 par value commonstock for $8 cash per share. The entry to…
A: Cash received = 6,000 shares x $8 per share = $48,000.
Q: A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a…
A: A journal is a part of the books of accounts, which is used to record all the transactions of the…
Q: Following are the issuances of stock transactions. 1. A corporation issued 4,000 shares of $30 par…
A: A Journal entry is used to record a business transaction in the accounting records of a business. In…
Q: Prepare entries to record the following: (a) Issued 1,000 shares of $10 par common stock at $59 for…
A: Common Stock purchases Shares issued in exchange of Equipment Treasury stock purchased Sold above…
Q: MJH Company issued 500 shares of stock with a par value of $10 per share for land valued at $20,000.…
A: Since mjh company issued shares in exchange of land Paid in capital in excess of par value is $…
Q: Present entries to record the following: Issued 1,000 shares of $15 par common stock at $52 for…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: D Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600…
A: Answer
Q: Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first…
A: Authorized share capital means the share capital which is the company is legally authorized to…
Q: The following selected transactions occurred for Corner Corporation:Feb. 1 Purchased 400 shares of…
A: Corner Corporation's 1. Effects of transaction on accounting equation : February 1 - Purchased 400…
Q: organized on. nuary 1,. and 533,000 shares of no-par common stock with a stated value of $3 per…
A: A common share is a share that is not a preference share. In other words, it is a share that does…
Q: Metlock, Inc. had the following transactions during the current period. Mar. 2 Issued 4,200…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
(a) |
Issued 2,000 shares of $10 par common stock at $72 for cash. |
(b) |
Issued 2,500 shares of common stock in exchange for land with a fair market price of $130,000. |
(c) |
Purchased 400 shares of |
(d) |
Sold the 400 shares of treasury stock purchased in (c) at $76. |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the company has the following transaction: Mar. 1, issued 500,000 shares of stock at $15.75 per share for cash to investors. Journalize this transaction.Selected 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.
- Prepare general journal entries for the following transactions, identifying each transaction by letter: (a) Gnu Company issued 5,000 shares of 1 par common stock to the Prendergas law firm as partial payment of fees incurred to incorporate the business. Gnu was short of cash, so Prendergas agreed to accept 10,000 cash and the shares of common stock in full settlement of its bill for 55,000. (b) Gnu issued 50,000 shares of 1 par common stock in exchange for a parcel of land for building a shopping plaza. (The list price for the land was 400,000; a similar parcel in the same area sold last week for 380,000. During the past month, the price at which Gnus common stock has traded on the open market has ranged from 5 to 12 per share. Two trades occurred yesterday at 7 and 10 per share.) (c) Gnu purchased 10,000 shares of 1 par value common treasury stock for 70,000. (This is the only treasury stock that Gnu holds.) (d) Gnu sold 4,000 shares of common treasury stock for 32,000. (e) Gnu sold 5,000 shares of common treasury stock for 30,000.A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting journal entry would include which of the following? A. a credit to common stock B. a credit to cash C. a debit to paid-in capital in excess of preferred stock D. a debit to cashA 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 stock
- MacKenzie Mining Corporation is authorized to issue 50,000 shares of $500 par value 7% preferred stock. It is also authorized to issue 5,000,000 shares of $3 par value common stock. In its first year, the corporation has the following transactions: Journalize the transactions.A corporation issues 6,000 shares of $1 par value stock for a parcel of land valued at $12,000. Prepare the journal entry to reflect this transaction.STOCK SUBSCRIPTIONS AND TREASURY STOCK Nash Roth formed a corporation and had the following organization costs and stock transactions during the year: June 30 Incurred the following costs of incorporation: Incorporation fees 800 Attorney's fees 9,000 Promotion fees 8,000 July 15 Issued 7,000 shares of 10 par common stock for 73,000 cash. Aug. 1 Received subscriptions for 8,000 shares of 10 par common stock for 81,500. 15 Issued 16,000 shares of 10 par common stock in exchange for a building and fixtures with a fair market value of 165,000. 31 Received a payment of 51,500 for the common stock subscription. Sept. 3 Purchased 2,000 shares of its own 10 par common stock for 11 a share. 18 Received the balance in full for the common stock subscription and issued the stock. 30 Sold 800 shares of its treasury stock for 11.50 a share. Oct. 15 Issued 3,000 shares of 40 par, 5% preferred stock in exchange for land with a fair market value of 125,000. 31 Sold 400 shares of its treasury stock for 10.75 a share. REQUIRED Prepare journal entries for these transactions.
- 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.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. Open the file STOCKEQ from the website for this book at cengagebrain.com. Enter the formulas in the appropriate cells on the worksheet. Then fill in the columns to show the effect of each of the selected transactions and events listed earlier. Enter your name in cell A1. Save the completed worksheet as STOCKEQ2. Print the worksheet. Also print your formulas. Check figure: Total stockholders equity balance at 12/31/12 (cell G21). 398,800.Chen Corporation began 2012 with the following stockholders equity balances: The following selected transactions and events occurred during the year: a. Issued 10,000 shares of common stock for 60,000. b. Purchased 1,200 shares of treasury stock for 4,800. c. Sold 2,000 shares of treasury stock for 11,000. d. Generated net income of 94,000. e. Declared and paid the full years dividend on preferred stock and a dividend of 1.00 per share on common stock outstanding at the end of the year. Chen Corporation maintains several paid-in capital accounts (Paid-in Capital in Excess of Par, Paid-in Capital from Treasury Stock, etc.) in its ledger, but combines them all as Additional paid-in capital when preparing financial statements. In the space provided below, prepare the stockholders equity section of Chen Corporations balance sheet as of December 31, 2012. Use proper headings and provide full disclosure of all appropriate information. Chens corporate charter authorizes the issuance of 1,000 shares of preferred stock and 100,000 shares of common stock.