Shott Farm Supplies Corporation purchased 800 shares of General Motors stock at $50 per share and paid a brokerage fee of $1,200. Two months later, the shares were sold for $53 per share. The brokerage fee on the sale was $1,300. Required: Prepare entries for the purchase and the sale.

Shott Farm Supplies Corporation purchased 800 shares of General Motors stock at $50 per share and paid a brokerage fee of $1,200. Two months later, the shares were sold for $53 per share. The brokerage fee on the sale was $1,300. Required: Prepare entries for the purchase and the sale.

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 1MC

See similar textbooks

Related questions

Q: The company's charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Oriental Furnishing Company purchased `3,600 shares of Wire &Wire products shares at OR 15 per share…

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: The company's charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: Investment transactions in 20X0 : On March 20, Purchased XYZ Co. ordinary shares = 1000 shares Share…

Q: Prepare general journal entries for the following transactions, identifying each transaction by…

A: The treasury stock includes the own shares purchased from the shareholders by the company. The…

Q: Sara Sanders purchased 50 shares of Apple stock at $190.64 per share using the prevailing minimum…

A: since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: On April 5, Fenning Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for…

A: Common stock: These are the ordinary shares that a corporation issues to the investors in order to…

Q: On December 5, Taylor Inc., purchased 2000 shares of Company A at $60.5 per share, and 1000 shares…

A: Unrealized gains/losses are an increase or decrease in the value of an investment respectively,…

Q: Matthew Company issues 4,000 ordinary shares to its external lawyers for services related to the…

A: Note:- Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: Dividend means the company excess profit after retained earnings are distributed to shareholders in…

Q: Emma Consulting had previously purchased 2,439 shares of treasury stock for $8 per share. Emma then…

A: Solution: Cost of treasury stock sold = 935*$8 = $7,480

Q: On January 2, Summers Company received a machine that the company had ordered with an invoice price…

A: Accounting equations are on the basis of the dual aspect concept of accounting. It means that every…

Q: Forte Inc. produces and sells theater set designs and costumes. The company began operations on…

A: Equity Method: Equity method is applied in accounting to record the treatment of investments in…

Q: On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000.…

A: Given information is: Todd Company acquired 40% of the outstanding stock of McGuire Company for…

Q: On January 2, Todd Company acquired 40% of the outstanding stock of McGuire Company for $205,000.…

A: The journal entries are the basic method for recording transactions. The portion of shares acquired…

Q: On December 29, Adams Apples purchased 1,000 shares of General Electric common stock for $19,000 and…

A: As investment place in active trading account for immediate resale, therefore appropriate reporting…

Q: Lewelling Company issued 100,000 shares of its $1 par common stock to the Michael Morgan law firm as…

Q: n January 1, Lumia Company's liabilities are $66,000 and its equity is $46,000. On January 3, Lumia…

A: The transactions in the business effects two or more accounts at the same time. If one account is…

Q: The company's charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred…

A: Journal- The first stage of the accounting process is journalizing. Journal is the primary book of…

Q: On February 22, Stewart Corporation acquired 2,400 shares of the 85,000 outstanding shares of…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: The following information was described in a note ofCanon Packing Co.“During August, Holland…

A: Disclosures: The additional information which is attached to the entity's financial statements and…

Q: Matthew Company issues 4,000 ordinary shares to its external lawyers for services related to the…

A: Expense refers to the decrease in the asset value because it is used for generating the revenue or…

Q: Gator Shoes, Inc., manufactures a line of stylish waterproof footwear. The following transactions…

A: When shares of a company are purchased as investments, then these investments should be recorded on…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: On March 20, 1000 shares were purchased of XYZ co. @ P80.5+ P500 On June 01, the Stock dividend…

Q: On July 7, Splish Ltd. purchased 1,100 common shares in a privately-owned company named TWR Ltd. As…

A: Journal entries refer to the process of systematically documenting the financial transactions of a…

Q: The company's charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred…

A: Journal entries:

Q: The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: As a long-term investment at the beginning of the fiscal year, Florists International purchased 30%…

A: Prepare the journal to record from the purchase to the end of the year.

Q: Geddes Engineering Corporation purchased conveyor equipment with a list price of $10,000. Presented…

A: Exchange of Used asset and commercial substance: Sometimes an asset can be acquired in exchange of…

Q: On February 12, Addison, Inc. purchased 6,000 shares of Lucas Company at $22 per share plus a $240…

A: At the time of purchase of investment, the brokerage on purchase becomes the cost of investment and…

Q: The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Loretta Inc. issues 2,000 shares of preferred stock in exchange for land and building that have a…

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

Q: Hayes Company sold 10,000 shares of Kenyon Co. common stock for $27.50 per share, incurring $1,770…

A: Total cash received on sale of shares = sale value - Brokerage commission paid = 10,000 share x…

Q: ABC bought 100 common shares of XYZ. The price paid was $ 40, per share, plus he paid $ 280 in…

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

Q: Cayuga Meadows purchased 42,000 shares of common stock of Long Corporation as a long-term investment…

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

Q: SprayCo Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On…

A: Hi student Since there are multiple questions, we will answer only first question. Since first…

Q: On December 31, 2010, Belmonte Company issues 150,000 stock appreciation rights to its officers…

A: a) Year Fair value Cumulative compensation (No. of SAR x Fair value) Percentage accrued…

Q: On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in ex- change…

A: Issue of common stock for non-cash assets or services: Corporations often issue common stock for the…

Q: Home Realty, Incorporated, has been operating for three years and is owned by three investors. J.…

A: The income statement is one of the essential part of the financial statements used for reporting the…

Q: he company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred…

A: Owner's Equity common and preference shares issued and the reserve and surplus of the company. In…

Q: H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached…

A: The journal entries are prepared to keep the record of day to day transactions of the business. The…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: The right shares refer to the shares issued to the existing shareholders. The right shares are the…

Q: A client had the following investment transactions in 20X0: On March 20, purchased 1,000 shares of…

A: The investment in the shares refers to the investment of funds through subscribing to the shares and…

Q: In September, the company entered the following transactions: Sept. 1 Issued common shares to…

A: Financial Statement: Financial statement consists of financial report and company’s financial…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Current liabilities, Provisions and Contingencies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.
Oriental Furnishing Company purchased `3,600 shares of Wire &Wire products shares at OR 15 per share and paid a brokerage fee of OR 2,700. Two month later , the shares were sold for OR 18 per share . the brokerage fee on the sale was OR 3,200 Required Prepare entries for the purchase and the sale.
In September, the company entered the following transactions: Sept. 1 Issued common shares to Tony Ferria and other investors in exchange for $100,000 cash. Sept 1 Paid $9,000 to Wellington Realty as three months’ advance rent on the rental yard and office formerly occupied by Rent-It Sept 1 Purchased for $180,000 all the equipment formerly owned by Rent-It. Paid $70,000 cash and issued a one-year note payable for $110,000, plus interest at the annual rate of 9%. This rental equipment is estimated to have a 10-year useful life. Sept 4 Purchased office supplies on account from Modern Office Co., $1,630. Payment due in 30 days. (These supplies are expected to last for several months.) Sept 8 Received $10,000 cash from McFadden Construction Co. as advance payment for equipment rental. Sept 12 Paid salaries for the first two weeks in September, $3,600. Sept 15 Excluding the McFadden…
ABC was formed by an investor who exchanged 1,000,000 for 100,000 shares of stock on August 1. ABC prepaid 18 months of rent by paying $96,000. ABC hired 3 employees and agreed to pay each $100,000/year. ABC agreed to pay at the end of each month; after the services are performed. ABC withholds 20% for federal tax; 5% for state tax; and 7.65% for FICA. ABC sold services over the year for $1,200,000 on account. They warranty their work for 1 year. ABC estimated 1% for bad debts using the percent of sales method. ABC estimated $100,000 in warranty work, but only paid out $20,000 (as cash back) in warranties through the end of the year. ABC received $400,000 in cash against the receivable by year-end. On 8/15 ABC purchased equipment signing a note for $400,000. ABC depreciated the equipment by $60,000 for book purposes and $50,000 for tax purposes. ABC accrued $6,000 in interest expense. On 8/1 ABC invested $200,000 into muni-bonds. The bonds paid $9,000 in interest. ABC driver got a…
On February 22, Stewart Corporation acquired 2,400 shares of the 85,000 outstanding shares of Edwards Co. common stock at $39.90 plus commission charges of $240. On June 1, a cash dividend of $0.75 per share was received. On November 12, 800 shares were sold at $48 less commission charges of $96. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. a. Using the cost method, journalize the entry for the purchase of stock. Feb. 22 fill in the blank f30290ff0040fa0_2 fill in the blank f30290ff0040fa0_4 b. Using the cost method, journalize the entry for the receipt of dividends. June 1 fill in the blank 32bfc3f39f9dfaa_2 fill in the blank 32bfc3f39f9dfaa_4 c. Using the cost method, journalize the entry for the sale of 800 shares. For a compound transaction, if an amount box does not require an entry, leave it blank. Nov. 12 fill in the blank…
On January 1, Lumia Company’s liabilities are $65,000 and its equity is $45,000. On January 3, Lumia purchases and installs solar panel assets costing $15,000. For the panels, Lumia pays $6,500 cash and promises to pay the remaining $8,500 in six months. What is the total of Lumia’s assets after the solar panel purchase? answer is 118,500
On December 5, Taylor Inc., purchased 2000 shares of Company A at $60.5 per share, and 1000 shares of Company B at $70.75 per share. Broker charged commission at $25 for shares of Company A and $20 for shares of Company B. On December 10, Taylor Inc., sold 500 shares of Company A for a total of $29000 (less $30 as brokerage commission) and 400 shares of Company B for a total of $30000 (less $25 as brokerage commission). Required:1. Prepare journal entries relating to purchase and sale of shares of Company A and Company B.2. Record journal entries relating to the necessary adjustment of unrealized holding gain or unrealized holding loss on sale of shares of Company A and Company B on December 31, assuming that the market value of remaining shares of Company A is $105000 and Company B is $37000.Note: Prepare separate entries for purchase and sale of shares and unrealized holding gain or loss of Company A and Company B.
On January 1, Lumia Company’s liabilities are $70,000 and its equity is $50,000. On January 3, Lumia purchases and installs solar panel assets costing $20,000. For the panels, Lumia pays $9,000 cash and promises to pay the remaining $11,000 in six months. What is the total of Lumia’s assets after the solar panel purchase?
Hayes Company sold 10,000 shares of Kenyon Co. common stock for $27.50 per share, incurring $1,770 in brokerage commissions. These securities originally cost $260,000. Prepare the entry to record the sale of these securities.
On April 5, Fenning Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 30,000 shares of $80 par common stock valued at $112 per share. Journalize the entry to record the transaction.
Righty, Inc., entered into a stock subscription contract that called for the purchase by investors of 10,000 shares of $10 par common stock at a price of $43 per share. The contract required a down payment of $20 per share, with the remaining $23 per share collectible at the end of three months. Required: a. Prepare the journal entry to record the stock subscription and down payment. b. The subscribers paid the remainder at the end of three months. Prepare the journal entry(ies) to record the final payment and the issuance of the shares of stock.