Do the requirement Tips and check figures: 1:32Chapter+14_Rosemary+Inc_72222Stock TransactionsThe following events occurred in 2021 for Rosemary Inc.Nov. 1Submitted articles of incorporation to the stategovernment.Nov. 15Application approved by state. The corporate charterauthorizes 50,000, $10 12% preferred stock and 1,000,000shares of $0.50 par value common stock.Nov. 18Issue 20,000 shares of common stock at $0.50 per share.Issue 30,000 shares of common stock at $2 per share.Nov. 25Dec. 1Repurchased 15,000 shares of common stock when themarket price was $1 per share.Dec. 5Dec. 25DoneResold 4,000 shares of the reacquired stock when the marketprice was $1.50 per share.Resold 5,000 shares of the reacquired stock when the marketprice was $0.25 per share.Requirements1.) Prepare the journal entries to record the events in November andDecember.Date Accounts & Explanations Debit Credit

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

Answered: Stock Transactions The following events…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 8MCQ

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STOCK SUBSCRIPTIONS AND TREASURY STOCK Rogers Hart formed a corporation and had the following organization costs and stock transactions during the year: June 30 Incurred the following costs of incorporation: July 15 Issued 8,000 shares of 10 par common stock for 82,000 cash. Aug. 1 Received subscriptions for 10,000 shares of 10 par common stock for 101,500. 15 Issued 10,000 shares of 10 par common stock in exchange for a building with a fair market value of 104,800. 31 Received a payment of 51,500 for the common stock subscription. Sept. 3 Purchased 1,000 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 500 shares of its treasury stock for 11.70 a share. Oct. 15 Issued 4,000 shares of 25 par, 8 % preferred stock in exchange for land with a fair market value of 105,000. 31 Sold 500 shares of its treasury stock for 10.50 a share. REQUIRED Prepare journal entries for these transactions.
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.
Exercise 1-41 Stockholders Equity OBJECTIVE o On January 11 2019, Mulcahy Manufacturing Inc., a newly formed corporation, issued 1,000 shares of common stock in exchange for $150,000 cash. No other shares were issued during 2019, and no shares were repurchased by the corporation. On November 1, 2019, the corporations major stockholder sold 300 shares to another stockholder for $50000. The corporation reported net income of $37,500 for 2019. Required: Prepare the stockholders equity section of Mulcahys balance sheet at December 31, 2019.
2. The company is desirous of comparing several financial transactions and possible outcomes to assist in guiding its decision-making process. It is assumed that the company will be formed on January 1, 2021 and registered as Osbourne Corporation. The company’s charter will authorize 1,000,000 shares of common stock and 400,000, $100 par value, 5% cumulative preferred stock. Issued 80,000 shares of common stock. Stock has par value of $0.50 per share and was issued at $30.00 per share. Issued 12,000 shares of preferred stock at par value as payment in exchange for legal services. Exchanged 220,000 shares of common stock for land with an appraised value of $600,000.00 and a building with an appraised value of $350,000.00 Earned Net income $820,000 Paid dividends to preferred shareholders as well as $2 per share to common stockholders. Using the info above and as a guide: A. Prepare the journal entries with narrations to record the following: The issuances of stock. Close out net…
Q 1. The MM CORPORATION was organized the State of Wisconsin’s. The charter authorized the Issuance of 1,000,000 shares of $ 2 PAR VALUE COMMON STOCK and additional 25000 shares of 4%, 20 par value cumulative convertible preferred stock that is callable $22 per share. Transactions that relate to the stock of the company are shown below: Feb 2 Issued 1,00,000 shares of common stock for $ 250,000. Mar 5 Issued 60,000 shares of common stock JM CORPOARATION in exchange for a Building and land, which had an appraised value of $ 100,000 and $ 25000 , respectively. July 15 Issued 25000 shares of preferred stock for $500,000. Dec 31 The Company reported earnings of $ 40,000 for 2018 and the board declared dividends of $ 20000. Dividends include preferred stock cash dividend for one- half year. a)Prepare the journal entries necessary to record these stock-related transactions. b)Prepare the stockholder’s…
PROBLEM 1: You were assigned to audit the shareholders’ equity of Glory Inc. for the year ended December31, 2019. Glory Corp. was incorporated in early 2018 when it was authorized by SEC to issue 500,000 ordinary shares (P10 par) and 100,000 convertible preference shares (P20 par). The following schedule reflects the company’s capital balances as of December 31, 2018: Ordinary shares, 100,000 shares issued during the company’s P 1,400,000 incorporation in exchange of a land with a fair value of P1.4 M. Preference shares, 50,000 shares issued during the company’s 2,500,000 incorporation at P50 per share. Each preference share is convertible to four ordinary shares Retained earnings, which is the company’s net income in 2018 540,000 Total shareholders’ equity P 3,440,000 Your inquiries and investigation revealed the following transactions, which occurred in 2019: On January 15, the company reacquired 20, 000 ordinary shares (from the 2018 issue) at P22 per share and reverted…
H7. The charter of a corporation provides for the issuance of 147,000 shares of common stock. Assume that 55,000 shares were originally issued and 11,500 were subsequently reacquired. What is the number of shares outstanding? a. 43,500 b. 55,000 c. 147,000 d. 11,500 Please show all step by step calculation
Problem 2 Resolve Corporation began operations on January 1, 2020. The company was authorized to issue 60,000 shares of P10 par value common stock and 120,000 shares of 10%, P100 par value convertible preferred stock. In connection with your audit of the company’s financial statements, you noted the following transactions involving stockholders’ equity during 2020:Jan. 1 Issued 1,500 shares of common stock to the corporation promoters in exchange for property valued at P510,000 and services valued at P210,000. The property costs P270,000 3 years ago and was carried on the promoters’ books at P150,000.31 Issued 30,000 shares of convertible preferred stock at P150 per share. Each share can be converted to five shares of common stock. The corporation paid P225,000 to an agent for selling the shares.Feb. 15 Sold 9,000 shares of common stock at P390 per share. The corporation paid issue costs of P75,000.May 30 Received subscriptions for 12,000 shares of common stock at P450 per share.Aug.…
Problem 2 Resolve Corporation began operations on January 1, 2020. The company was authorized to issue 60,000 shares of P10 par value common stock and 120,000 shares of 10%, P100 par value convertible preferred stock. In connection with your audit of the company’s financial statements, you noted the following transactions involving stockholders’ equity during 2020:Jan. 1 Issued 1,500 shares of common stock to the corporation promoters in exchange for property valued at P510,000 and services valued at P210,000. The property costs P270,000 3 years ago and was carried on the promoters’ books at P150,000.31 Issued 30,000 shares of convertible preferred stock at P150 per share. Each share can be converted to five shares of common stock. The corporation paid P225,000 to an agent for selling the shares.Feb. 15 Sold 9,000 shares of common stock at P390 per share. The corporation paid issue costs of P75,000.May 30 Received subscriptions for 12,000 shares of common stock at P450 per share.Aug.…
Problem 2 Resolve Corporation began operations on January 1, 2020. The company was authorized to issue 60,000 shares of P10 par value common stock and 120,000 shares of 10%, P100 par value convertible preferred stock. In connection with your audit of the company’s financial statements, you noted the following transactions involving stockholders’ equity during 2020:Jan. 1 Issued 1,500 shares of common stock to the corporation promoters in exchange for property valued at P510,000 and services valued at P210,000. The property costs P270,000 3 years ago and was carried on the promoters’ books at P150,000.31 Issued 30,000 shares of convertible preferred stock at P150 per share. Each share can be converted to five shares of common stock. The corporation paid P225,000 to an agent for selling the shares.Feb. 15 Sold 9,000 shares of common stock at P390 per share. The corporation paid issue costs of P75,000.May 30 Received subscriptions for 12,000 shares of common stock at P450 per share.Aug.…
15pointsItemSkipped PrintReferencesItem 5Mainland Resources Inc. began operations on June 5, 2023. 2023 June5 Gave 4,000 common shares to the organizers of the corporation in exchange for accounting and legal services valued at $84,700.15 Received 521 cash per share for the issuance of 77,000 common shares. 16 Issued 10,000 preferred shares for cash of $41 per share. 178,000 common shares were issued to a creditor who was owed $132,000. 18 The board of directors declared a cash dividend of $19, 700 on the preferred shares and $5, 200 on the common shares to shareholders of record on June 20, payable July 1. 30 152,000 common shares were issued in exchange for machinery with a fair market value of $2, 480, 000. The shares were actively trading on this date at $15.00 per share. July 1 The dividends declared on June 18 were paid. Required: Joumalize the above equity transactions that occurred during the first month of operations. Cash dividend account is used for declaring dividends.
9. Thornwood Partners Ltd. began business on January 1, 2022. The corporate charter authorized issuance of unlimited no par value common shares, and 8,000 $3 stated value, 10% cumulative preferred shares. On July 1, Thornwood issued 20,000 common shares in exchange for two years' rent on a retail location. The cash rental price is $3,000 per month and the rental period begins on July 1. What is the correct entry to record the July 1 transaction? a.Debit to Cash, $72,000; Credit to Prepaid Rent, $57,600 b.Debit to Prepaid Rent, $72,000; Credit to Common Shares, $72,000 c.Debit to Prepaid Rent, $72,000; Credit to Common Shares, $60,000; Credit to Contributed Surplus—Common Shares, $12,000 d.Debit to Prepaid Rent, $72,000; Credit to Common Shares, $20,000; Credit to Contributed Surplus—Common Shares, $52,000

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