EX 13-5Issuing stock for assets other than cashOBJ.3On April 5, Fenning Corporation, a wholesaler of hydraulic lifts, acquired land in exchangefor 30,000 shares of $80 par common stock valued at $112 per share. Journalize the entryto record the transaction. cer 13 Corporations: Organization, Stock Transactions, and DividendsEX 13-5 Isuing stock for assets other than cashmsOBJ. 3anon On April 5, Fenning Corporation, a wholesaler of hydraulic lifts, acquired land in exchangefor 30,000 shares of $80 par common stock valued at $112 per share. Journalize the entryto record the transaction.2092321Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, PaulGlenn, and Gretchen Northway. The charter authorized 1,000,000 shares of common stockwith a par of $1. The following transactions affecting stockholders' equity were completedduring the firstEX 13-6 Selected stock transactionsOBJ. 3yearof operations:a. Issued 100,000 shares of stock at par to Paul Glenn for cash.b. Issued 3,000 shares of stock at par to Michele Kirby for promotional services providedin connection with the organization of the corporation and issued 45,000 shares ofstock at par to Michele Kirby for cash.c. Purchased land and a building from Gretchen Northway in exchange for stock issuedat par. The building is mortgaged for $180,000 for 20 years 2t G%, aninterest of $5 300's accrued

These are the accounting transactions that are having a monetary impact on the financial statement…

Answered: X 13-5 Iss

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

ChapterD: Investments

Section: Chapter Questions

Problem D.5EX

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Entries for selected corporate transactions Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises stockholders equity accounts, with balances on January 1, 20Y6, are as follows: Common Stock, 20 stated value (500,000 shares authorized, 375,000 shares issued) 7,500,000 Paid-In Capital in Excess of Stated ValueCommon Stock 825,000 Retained Earnings 33,600,000 Treasury Stock (25,000 shares, at cost 450,000 The following selected transactions occurred during the year: Jan. 22. Paid cash dividends of 0.08 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for 28,000. Apr. 10. Issued 75,000 shares of common stock for 24 per share. June 6. Sold all of the treasury stock for 26 per share. July 5. Declared a 4% stock dividend on common stock, to be capitalized at the market price of the stock, which is 25 per share. Aug. 15. Issued shares of stock for the stock dividend declared on July 5. Nov. 23. Purchased 30,000 shares of treasury stock for 19 per share. Dec. 28. Declared a 0.10-per-share dividend on common stock. 31. Closed the credit balance of the income summary account, 1,125,000. 31. Closed the two dividends accounts to Retained Earnings. Instructions 1. Enter the January 1 balances in T accounts for the stockholders equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions, and post to the eight selected accounts. 3. Prepare a retained earnings statement for the year ended December 31, 20Y6. 4. Prepare the Stockholders Equity section of the December 31, 20Y6, balance sheet.
Issuing stock for assets other than cash On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in exchange for 12,500 shares of 25 par common stock with a current market price of 38. Journalize the entry to record the transaction.
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.

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