Prepare the issuer’s journal entry for each of the following separate transactions. a. On March 1, Atlantic Co. issues 42,500 shares of $4 par value common stock for $297,500 cash. b. On April 1, OP Co. issues no-par value common stock for $70,000 cash. c. On April 6, MPG issues 2,000 shares of $25 par value common stock for $45,000 of inventory, $145,000 of machinery, and acceptance of a $94,000 note payable.

Q: Prepare the issuer's journal entry for each of the following separate transactions. a. On March 1,…

A: When the common stock is issued in excess of its par value, they are said to be issued at premium.…

Q: On June 1, Riverbed Inc. issues 3,250 shares of no-par common stock at a cash price of $10 per…

A: Date Accounts Title and explanation Debit Credit June 1 Cash (3250*10) $32,500           Common…

Q: On July 1, Raney Corporation purchases 500 shares of its $5 par value common stock for the treasury…

A: When treasury stock are purchased, the treasury stock is debited at the purchase price and cash…

Q: Sneed Corporation issues 13,300 shares of $46 par preferred stock for cash at $61 per share. The…

A: Whenever the preferred stock shares are issued at premium i.e above their par value, the par value…

Q: Entries for Treasury Stock On May 27, Idress Clothing Inc. reacquired 64,000 shares of its common…

A: Treasury stock is the outstanding stock purchased by company itself. Treasury stock is to be…

Q: On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 736,000 shares of no-par…

A: If the shares are issued at more than a par value of a share, the excess amount goes to Paid-in…

Q: Blossom Company had these transactions during the current period. June 12   Issued 83,500 shares…

A: Date Account Titles and Explanations Debit Credit June 12 Cash  $313,125…

Q: Anslo Fabricating, Inc. is authorized to issue 10,000,000 shares of $5 stated value common stock.…

A: Formula: Cash received = Number of shares issued x Issue price per share

Q: Bramble Corp. is authorized to issue both preferred and common stock. The par value of the preferred…

A: A journal entry is prepared by the company to record the non-economic & economic transactions of…

Q: On May 10, Bramble Corp. issues 1,200 shares of $7 par value common stock for cash at $12 per share.…

A: Journal: Recording of a business transactions in a chronological order.

Q: Novak Corp. is authorized to issue both preferred and common stock. The par value of the preferred…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On January 31, Outback Coast Resorts Inc. reacquired 18,700 shares of its common stock at $45 per…

A: Treasury stocks are reacquired shares by the company and it can be reissued further at higher than…

Q: Pronghorn Corp. is authorized to issue both preferred and common stock. The par value of the…

A: Company can issue two types of stock in the business. One is common stock and other is Preference…

Q: On May 10, a company issued for cash 2,000 shares of no-par common stock (with a stated value of $2)…

A: Given that: Common stock shares issued = 2000 shares Preferred Stock shares = 3000 shares

Q: On June 1, Pronghorn Inc. issues 3,200 shares of no-par common stock at a cash price of $8 per…

A: Being to record issue of common stock

Q: On July 1, Blue Spruce Corporation purchases 460 shares of its $5 par value common stock for the…

A: Treasury shares means the share which has been buy back by the company . It will be shown as…

Q: On January 31, Wilderness Resorts Inc. reacquired 24,300 shares of its common stock at $31 per…

A: Journal entries are prepared to record the financial and non-financial transactions of the business…

Q: On June 1, Sheffield Inc. issues 3,350 shares of no-par common stock at a cash price of $7 per…

A: Paid in capital in excess of stated value = (Par value per share - Stated value per share) x No. of…

Q: Anslo Fabricating, Inc. is authorized to issue 10,000,000 shares of $5 stated value common stock.…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: Martinez Corporation purchased from its stockholders 6,500 shares of its own previously issued stock…

A: Treasury stock is those shares which are repurchased by the company from the open market.

Q: On May 10, a company issued for cash 1,000 shares of no-par common stock (with a stated value of $5)…

A: Amount credited to common stock = 1,000*$5 Amount credited to common stock = $5,000   Amount…

Q: On July 1, Hanson Corporation issued 10 shares of $100 par value preferred stock for cash of $1,000…

A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: On June 1, Noonan Inc. issues 3,550 shares of no-par common stock at a cash price of $9 per share.…

A: All the transactions of an entity are properly accounted by making corresponding journal entries in…

Q: ntries for Treasury Stock On May 27, Let Loose Inc. reacquired 3,800 shares of its common stock at…

A: Treasury stock is the corporation's issued stock that has been bought back from the stockholders. As…

Q: The following selected transactions occurred for Corner Corporation:   Feb. 1   Purchased 420…

A: Journal entries represent the starting point in the accounting cycle, they are used to record every…

Q: Sunland Company purchased from its stockholders 5,300 shares of its own previously issued stock for…

A: Journal entry records the transactions of the business into the books of accounts of the entity and…

Q: Cullumber Company had these transactions during the current period. June 12 Issued 80,500 shares of…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On June 1, Pronghorn Inc. issues 3,200 shares of no-par common stock at a cash price of $8 per…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On February 12, Quality Carpet Inc., a carpet wholesaler, issued for cash 729,000 shares of no-par…

A: Shareholders equity balance includes common stock, preferred stock, additional paid-in capital. From…

Q: Prepare the issuer's journal entry for each of the following separate transactions. a. On March 1,…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Prepare general journal entries to record these transactions.   Fido Corporation engaged in the…

A: Treasury stock: Shares which are bought back by the company from the open market but not retired…

Q: Ergonomics Supply Inc., a wholesaler of office products, was organized on July 1 of the current…

A: The following entries are journalized for Ergonomics Incorporation.

Q: Journalize the issuance of the stock

A: Stocks (Common Stock and Preferred Stock):   There are two types of the share capital of a company.…

Q: On May 23, Stoltz Realty Inc. issued for cash 80,000 shares of no-par common stock (with a stated…

A: It is assumed that the requirement for this question is the preparation of the journal entries.

Q: Carla Vista Co. had these transactions during the current period. June 12 Issued 83,000 shares of $1…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: Rodriguez Corporation issues 16,000 shares of its common stock for $42,300 cash on February 20.…

A: Journal entries are those which are recorded in the books in order to maintain a daily record of the…

Q: Ise Entries for Treasury Stock On May 27, Buzz Off Inc. reacquired 4,600 shares of its common stock…

A: When a company reacquires/purchases its owns share, it called treasury shares. Assumption :cost…

Q: On May 27, Kick Off Inc. reacquired 3,000 shares of its common stock at $54 per share. On August 3,…

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: Pronghorn Corp began operations on April 1 by issuing 52,200 shares of $4 par value common stock for…

A: Journal entries: A journal entry is recorded for every business transaction. It is the first step in…

Q: Prepare the issuer's journal entry for each of the following separate transactions. a. On March 1,…

A: For running any business or company , we need to have long term sources of funds so that business…

Q: On January 31, Outback Coast Resorts Inc. reacquired 23,900 shares of its common stock at $31 per…

A: Required Journal Entries are as follows:

Q: Clothing Frontiers began operations on January 1 and engages in the following transactions during…

A: Share issue refers to issue of new share for cash.

Q: Nelson Corporation issued 9,000 shares of ​$3 stated value common stock for ​$11 per share on July…

A: The organization can raise funds for the operation song integrity by issuing common stock, preferred…

Q: Rodriguez Corporation issues 12,000 shares of its common stock for $236,000 cash on February 20.…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Pronghorn Corp began operations on April 1 by issuing 52,200 shares of $4 par value common stock for…

A: Total amount received from issue of common stock = No. of common shares issued x Issue price per…

Q: On May 15, Helena Carpet Inc., a carpet wholesaler, issued for cash 120,000 shares of no-par common…

A: Paid in capital is the capital which is received by the issuer in the exchange of issuing shares to…

Q: Prepare the issuer's journal entry for each of the following separate transactions. a. On March 1,…

A: For running any business or company , we need to have long term sources of funds so that business…

Q: On May 10, a company issued for cash 1,600 shares of no-par common stock (with a stated value of $4)…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Pronghorn Inc. issues 4,700 shares of $110 par value preferred stock for cash at $135 per…

A: Account Titles and Explanation Debit Credit Cash (4700*135) $634,500              Preferred…

Q: Clothing Frontiers began operations on January 1 and engages in the following transactions during…

A: The journal entries are prepared by the company to record the monetary transactions of a company in…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.