Purchased land by issuing 150, 000 shares of its P30 par value common shares in exchange. The shares have a quoted price of P64 per share on the date of purchase of the land. Journal entry to record the transaction: What is the rule in solving the problem?
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Problem 7
Purchased land by issuing 150, 000 shares of its P30 par value common shares in exchange. The shares have a quoted price of P64 per share on the date of purchase of the land.
What is the rule in solving the problem?
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- MK Designs The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: i) MK Designs purchased a piece of land from the original owner. In payment for the land, MK Designs issues 390,000 shares of common stock with a $1.00 par value. The land has been appraised at a market value of $1,520,000 ii) The company sold 140,000 shares of common stock with a $1 par value. iii) Issued 26,000 shares of $22 par value preferred stock. Shares were issued at par. iv) Earned net income of $950,000 v) Dividend declared and paid - $0.15 per share on common stock vi) Dividend declared and paid - $5 per share on preferred stock Prepare the journal entries and closing entries for the above transaction. Prepare the owner’s equity section of the balance sheet based on the info above.Belize Biltmore Plaza acquires a patent from Camino Real in exchange for 3,000 shares of Belize Biltmore Plaza’s $6 par value common stock and $85,000 cash. When the patent was initially issued to Camino Real, Belize Biltmore Plaza’s stock was selling at $8.25 per share. When Belize Biltmore Plaza acquired the patent, its stock was selling for $9.50 per share. Belize Biltmore should record the patent at what amount?Loretta Inc. issues 2,000 shares of preferred stock in exchange for land and building that have a fair value of $50,000 and $80,000 respectively. What is included in the journal entry to record this transaction? a. A debit to Land and Building for $130,000 b. A debit to Land for $80,000 c. A credit to Preferred Stock for $130,000 d. A credit to Preferred Stock for $2,000
- A piece of equipment is acquired by an entity by issuing 10,000 shares of 10 par ordinary shares. The equipment has a list price of 150,000 and a trade discount of 10%. If paid in cash at the time of purchase, a 5% cash discount is allowed. The company’s ordinary shares are actively traded in a capital market with an average market price of 13 at the date of the exchange. What is the cost of the equipment? A. 130,000 B. 128,250 C. 150,000 D. 135,000CAIRNE issued 30,000 shares of P100 stated value in exchange for land and factory building with total fair value of P9 million pesos. The value of land is twice as much the value of the building. What would be the entry of CAIRNE to record the transaction? Group of answer choices Land 2,000,000Building 1,000,000 Share Capital 3,000,000 Land 6,000,000Building 3,000,000 Share Capital 9,000,000 Land 2,000,000Building 1,000,000 Share Capital 3,000,000 Land 6,000,000Building 3,000,000 Share Capital 3,000,000 Share Premium 6,000,000On May 20, Montero Co. paid $150,000 to acquire 30 shares (4%) of ORD Corp. as a long-term investment. On August 5, Montero sold one-tenth of the ORD shares for $18,000. 1. Prepare entries to record both (a) the acquisition and (b) the sale of these shares. 2. Should this stock investment be reported at fair value or at cost on the balance sheet?
- Putt Company issues 500 shares of $100 preferred stock to Drive Corporation in exchange for land on December 31. This land was carried on Drive’s books for $40,000. c.The preferred stock is currently selling for $125 per share. The land is appraised at $64,000. 2.Next Level For Requirement 1(c), discuss why you chose the value used in the journal entry.The company's chater authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: 1) KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues 300,000 shares of common stock with $1.00 par value. The land has been appraised at a marked value of $1,200,000. 2) The company sold 120,000 shares of common stock with $1 par value. 3) Issued 25,500 shares of $20 par value preferred stock. Shares were issued at par 4) Earned net income of $764,000 5) Dividend declared and paid -$0.15 per share on common stock 6) Dividend declared and paid -$5 per share on preferred stock A) Prepare Journal entries for the above B) Prepare closing entries for the aboveThe company's chater authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: 1) KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues 300,000 shares of common stock with $1.00 par value. The land has been appraised at a marked value of $1,200,000. 2) The company sold 120,000 shares of common stock with $1 par value. 3) Issued 25,500 shares of $20 par value preferred stock. Shares were issued at par 4) Earned net income of $764,000 5) Dividend declared and paid -$0.15 per share on common stock 6) Dividend declared and paid -$5 per share on preferred stock A) Prepare the Journal entries and closing entries for the above transaction B) Prepare the owner’s equity section of the balance sheet based on the info above.
- The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues 300,000.00 shares of common stock with $1.00 par value. The land has been appraised at a market value of 1,200,000.00 Prepare the Journal entriesSudoku Company issues 25,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $240,000 and the building at $376,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.Kelly's Corp. authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: Kelly's Corp purchased a piece of land from the original owner. In payment for the land, Kelly's corp issues 300,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $1,200,000 The company sold 120,000 shares of common stock with $1 par value. Issued 25,500 shares of $20 par value preferred stock. Shares were issued at par. Earned net income of $764,000 Dividend declared and paid - $0.15 per share on common stock Dividend declared and paid - $5 per share on preferred stock 1a. Do the Journal entries and closing entries for the above transactions 1b. Do the owner’s equity section of the balance sheet only!
