Sneed Corporation issues 11,600 shares of $45 par preferred stock for cash at $67 per share. The journal entry for the transaction will consist of a debit to Cash for $777,200 and a credit or credits to a. Preferred Stock for $522,000 and Paid-In Capital in Excess of Par-Preferred Stock for $255,200. b. Preferred Stock for $522,000 and Retained Earnings for $255,200. Oc. Preferred Stock for $777,200. Od. Paid-In Capital from Preferred Stock for $777,200.
Q: Oriole Company has issued 2,500 shares of common stock and 500 shares of preferred stock for a lump…
A: Common stock and Preference stock are two types of stock or shares that is being issued by the…
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: Stellar Corporation issued 354 shares of $10 par value common stock and 143 shares of $50 par value…
A: A journal entry records a business transaction in the accounting system for an organization. Journal…
Q: If Dakota Company issues 1,100 shares of $6 par common stock for $24,200, a.Cash will be debited…
A: Common stock: These are the shares issued by a company to an outsider. These shares entitle a share…
Q: (a) Prepare the journal entry for the issuance assuming the par value of the common stock was $5 and…
A:
Q: When a company issues 36,000 shares of $4 par value common stock for $40 per share, the journal…
A: The journal entry of share issuance requires a debit to cash account and credit to share capital…
Q: Nexis Corp. issues 1,970 shares of $9 par value common stock at $17 per share. When the transaction…
A: The journal entry to record the issue of shares as follows:
Q: Nexis Corp. issues 2,870 shares of $8 par value common stock at $17 per share. When the transaction…
A: Common stock can be issued at more price than the par value of the shares. The premium on in excess…
Q: Alt Corp. issues 5,000 shares of $10 par value common stock at $14 per share. When the transaction…
A: We have the following information: Alt Corporation issued Common Stock Common Stock Shares: 5,000 ;…
Q: Alma Corp. issues 1,000 shares of $10 par common stock at $14 per share. When the transaction is…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Nexis Corp. issues 2,470 shares of $11 par value common stock at $16 per share. When the transaction…
A: The excess amount over the par value of a common stock is considered as paid-in capital in excess of…
Q: Badger Corporation issued 9,000 shares of its $5 par value common stock in payment for attomey…
A: Total par value of Common Stock = No. of Common Stock issued x par value per share = 9000 x $5 =…
Q: A company has 180,000 shares of common stock authorized with a par of $1 per share, of which 30,000…
A: Stock dividend is the dividend declared and distributed among the shareholders but in form of stock.…
Q: Sheffield Corp.'s balance sheet reported the following: Capital stock outstanding, 4,000 shares,…
A: Treasury stock is the amount or value of stock that is being reacquired or repurchased from the…
Q: Concord, Inc. issued 9800 shares of stock at a stated value of $7/share. The total issue of stock…
A: Given, Stated value = $7 per share Issue price = $12 per share Number of shares issued = 9,800…
Q: Alma Corp. issues 2,150 shares of $9 par common stock at $15 per share. When the transaction is…
A: When the share is issued at an excess price than a par value of a share, it is recorded to the…
Q: Shamrock, Inc. issues 9,100 shares of $106 par value preferred stock for cash at $114 per share.…
A: Total amount received = No. of shares issued x Issue price per share = 9,100 shares x $114 per…
Q: Skysong Inc. issues 500 shares of $ 10 par value common stock and 100 shares of $ 100 par value…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Swifty Corporation's balance sheet reported the following: Capital stock outstanding, 4,500 shares,…
A: Journal entry refers to the recording of daily transactions of an organization. It has a credit and…
Q: Coronado Industries has issued 1,500 shares of common stock and 300 shares of preferred stock for a…
A: The issue price of the stock could be issued at par, premium or discount. If the proceed from…
Q: Bramble Corp.'s balance sheet reported the following: Capital stock outstanding, 5,000 shares, par…
A: The treasury stock is the purchase of its own share by the company.
Q: Nylah Corporation's balance sheet reported the following: Capital stock outstanding, 5,000 shares,…
A: Treasury stock: These are the own shares purchased by the issuing company from the open market.…
Q: Watson Corporation is authorized to issue 7,500 shares of $100 par value, 6%, cumulative preferred…
A: Dividend is the part or share of profits being distributed to the shareholders. It is being paid to…
Q: Smart Poly Machine issues 5,000 shares of 5%, $10 Par Value Preferred Stock for $10,000 cash,…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Nexis Corp. issues 1,960 shares of $11 par value common stock at $15 per share. When the transaction…
A: A journal entry is the recording of financial transactions of business entity in the books of…
Q: Torres Inc. issues 40,000 shares of its $0.05 par value common stock for $70 per share. The journal…
A: To record issue of shares at a value more than par value, common stock will be credited by par value…
Q: The Sneed Corporation issues 11,100 shares of $54 par preferred stock for cash at $62 per share. The…
A: The company can raise funds from different sources like by issuing common stock, issuing preferred…
Q: Prepare the journal entry to record Jevonte Company’s issuance of 36,000 shares of its common stock…
A: Journal entry: It is a systematic record of a financial transaction of an organization recorded in…
Q: Vaughn Corporation issues 9900 shares of $50 par value preferred stock for cash at $85 per share.…
A: Given, Par value = $50 Issue price = $85 Number of shares issued = 9,900
Q: The Snow Corporation issues 9,900 shares of $54 par value preferred stock for cash at $62 per share.…
A: Whenever the preferred stock shares are issued at premium i.e above their par value, the par value…
Q: Alma Corp. issues 1,170 shares of $5 par common stock at $15 per share. When the transaction is…
A: This query relates to the common stock issue journal entry. As soon as a share is granted, the par…
Q: Alma Corp. issues 1,120 shares of $7 par common stock at $15 per share. When the transaction is…
A: The correct journal entry to record issue of shares will be: Account Titles Debit Credit…
Q: On December 2, Coley Corp. acquired 1,500 shares of its $3 par value common stock for $20 each. On…
A: Solution: Cost of treasury stock resold = 1100*$20 = $22,000
Q: Crane Company's balance sheet reported the following: Capital stock outstanding, 4,000 shares, par…
A: Treasury stock: Shares which are bought back by the company from the open market but not retired…
Q: A corporation sold 9,500 shares of its $10 par value common stock at a cash price of $11 per share.…
A: >Issuance of common stock is one of the Financing activity from which the corporation gets Cash…
Q: The Sneed Corporation issues 12,700 shares of $46 par preferred stock for cash at $63 per share. The…
A: The organization can raise funds for the operation by issuing common stock, preferred stock for…
Q: The Snow Corporation issues 9,800 shares of $52 par value preferred stock for cash at $66 per share.…
A: Definition: Preferred stock: The stock that provides a fixed amount of return (dividend) to its…
Q: On October 10, the stockholders’ equity section of Sherman Systems appears as follows. Common…
A: Shareholder's Equity - This statement includes Common Stock, Paid in Capital in Excess of Par,…
Q: Wildhorse Co. issues 36000 shares of $50 par value preferred stock for cash at $75 per share. In the…
A: Preferred Stock Capital will be increased by = No. of shares issued x Par value per share = 36000…
Q: Los Altos, Inc., is authorized to issue 1,500,000 shares of $1 par value common stock. The company…
A: Solution: When common stock are issued at a price greater than par value, common stock account is…
Q: Emma Consulting had previously purchased 3,466 shares of treasury stock for $7 per share. Emma then…
A: Given, 3,600 shares purchased for $7 per share Sold 1,225 shares of treasury stock for $13 per…
Q: If Kiner Company issues 1,000 shares of P5 par value common stock for P7o,000, the account Common…
A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…
Q: Alma Corp. issues 1,170 shares of $5 par common stock at $15 per share. When the transaction is…
A: This question deals with the journal entry for issue common stock. When share is issued then par…
Q: Sneed Corporation issues 11,700 shares of $55 par preferred stock for cash at $60 per share. The…
A: Stocks: Stocks are shares in the ownership of the company. It represents the capital raised by a…
Q: Badger corporation issued 9,000 shares of its $5 per value common stock in payment for attorney…
A: Total par value of Common Stock = No. of Common Stock issued x par value per share = 9000 x $5 =…
Q: Taylor Corporation issues 20,000 shares of $50 par value preferred stock for cash at $90 per share.…
A: Issue price of preferred stock=Number of Shares×Issue price=20,000×$90=$1,800,000
Q: The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The…
A: Cash received = 10,000 x $75 = $750,000 Preferred stock = 10,000 x $50 = $500,000 Excess = 10,000 x…
Q: Nexis Corp. issues 1,110 shares of $9 par value common stock at $17 per share. When the transaction…
A: When common stock is issued anything received in excess of par is credited to paid in capital in…
Q: The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $62 per share. The…
A: Cash received = 10,000 shares x $62 = $620,000 Par value per share = $50 Paid in capital in excess…
Q: Ravonette Corporation issued 300 shares of $10 par value common stock and 100 shares of $50 par…
A: Total market value of Common Stock = No. of shares x Market value per share = 300 shares x $20 per…
please explain properly
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.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.Prepare general journal entries for the following transactions of GOTE Company: (a) Received subscriptions for 10,000 shares of 2 par common stock for 80,000. (b) Received payment of 30,000 on the stock subscription in transaction (a). (c) Received the balance in full for the stock subscription in transaction (a) and issued the stock. (d) Purchased 1,000 shares of its own 2 par common stock for 7.50 a share. (e) Sold 500 shares of the stock on transaction (d) for 8.50 a share.
- Outstanding Stock Lars Corporation shows the following information in the stockholders equity section of its balance sheet: The par value of common stock is S5, and the total balance in the Common Stock account is $225,000. There are 13,000 shares of treasury stock. Required: What is the number of shares outstanding? Use the following information for Exercises 10-58 and 10-59: Stahl Company was incorporated as a new business on January 1, 2019. The company is authorized to issue 600,000 shares of $2 par value common stock and 80,000 shares of 6%, S20 par value, cumulative preferred stock. On January 1, 2019, the company issued 75,000 shares of common stock for $15 per share and 5,000 shares of preferred stock for $25 per share. Net income for the year ended December 31, 2019, was $500,000.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.Ammon Company is authorized to issue 500,000 shares of $5 par value preferred stock. In its first year, the company has the following transaction: Mar. 1, issued 40,000 shares of preferred stock at $20.50 per share. Journalize the transaction.
- STOCK SUBSCRIPTIONS Juneau Associates had the following stock transactions during the year: (a) Received subscriptions for 100,000 shares of 1 par common stock for 105,000. (b) Received subscriptions for 5,000 shares of 15 par, 8% preferred stock for 80,000. (c) Received a payment of 55,000 on the common stock subscription. (d) Received a payment of 40,000 on the preferred stock subscription. (e) Issued 40,000 shares of 1 par common stock in exchange for a truck with a fair market value of 48,000. (f) Received the balance in full for the common stock subscription and issued the stock. (g) Received the balance in full for the preferred stock subscription and issued the stock. REQUIRED Prepare general journal entries for these transactions, identifying each by letter.Stockholders equity accounts and other related accounts of Gonzales Company as of January 1, 20--, the beginning of its fiscal year, are shown below. Preferred stock subscriptions receivable 50,000 Preferred stock, 10 par, 9% (200,000 shares authorized; 20,000 shares issued)200,000 Preferred stock subscribed (10,000 shares)100,000 Paid-in capital in excess of parpreferred stock40,000 Common stock, 10 par (100,000 shares authorized; 60,000 shares issued)600,000 Paid-in capital in excess of parcommon stock250,000 Retained earnings750,000 During 20--, Gonzales Company completed the following transactions affecting stockholders equity: (a) Received 20,000 for the balance due on subscriptions for 4,000 shares of 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 100,000. (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.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
- Raun Company had the following equity items as of December 31, 2019: Preferred stock, 9% cumulative, 100 par, convertible Paid-in capital in excess of par value on preferred stock Common stock, 1 stated value Paid-in capital in excess of stated value on common stock| Retained earnings The following additional information about Raun was available for the year ended December 31, 2019: 1. There were 2 million shares of preferred stock authorized, of which 1 million were outstanding. All 1 million shares outstanding were issued on January 2, 2016, for 120 a share. The preferred stock is convertible into common stock on a 1-for-1 basis until December 31, 2025; thereafter, the preferred stock ceases to be convertible and is callable at par value by the company. No preferred stock has been converted into common stock, and there were no dividends in arrears at December 31, 2019. 2. The common stock has been issued at amounts above stated value per share since incorporation in 2002. Of the 5 million shares authorized, 3,580,000 were outstanding at January 1, 2019. The market price of the outstanding common stock has increased slowly but consistently for the last 5 years. 3. Raun has an employee share option plan where certain key employees and officers may purchase shares of common stock at 100% of the marker price at the date of the option grant. All options are exercisable in installments of one-third each year, commencing 1 year after the date of the grant, and expire if not exercised within 4 years of the grant date. On January 1, 2019, options for 70,000 shares were outstanding at prices ranging from 47 to 83 a share. Options for 20,000 shares were exercised at 47 to 79 a share during 2019. During 2019, no options expired and additional options for 15,000 shares were granted at 86 a share. The 65,000 options outstanding at December 31, 2019, were exercisable at 54 to 86 a share; of these, 30,000 were exercisable at that date at prices ranging from 54 to 79 a share. 4. Raun also has an employee share purchase plan whereby the company pays one-half and the employee pays one-half of the market price of the stock at the date of the subscription. During 2019, employees subscribed to 60,000 shares at an average price of 87 a share. All 60,000 shares were paid for and issued late in September 2019. 5. On December 31, 2019, there was a total of 355,000 shares of common stock set aside for the granting of future share options and for future purchases under the employee share purchase plan. The only changes in the shareholders equity for 2019 were those described previously, the 2019 net income, and the cash dividends paid. Required: Prepare the shareholders equity section of Rauns balance sheet at December 31, 2019. Substitute, where appropriate, Xs for unknown dollar amounts. Use good form and provide full disclosure. Write appropriate notes as they should appear in the publisher financial statements.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.