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Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.
Par value: It refers to the value of a stock that is stated by the corporation’s charter. It is also known as face value of a stock.
Issue of common stock for non-cash assets or services: Corporations often issue common stock for the services received from attorneys or consultants as compensation, or for the purchase of non-cash assets such as land, buildings, or equipment.
To Journalize: The issuance of the stock in acquiring the land.
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Chapter 13 Solutions
Bundle: Accounting, Loose-Leaf Version, 26th + CengageNOWv2, 2 term Printed Access Card
- Sudoku Company issues 22,000 shares of $9 par value common stock in exchange for land and a building. The land is valued at $242,000 and the building at $368,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building. View transaction list Journal entry worksheet レ A Record the issue of 22,000 shares of $9 par value common stock in exchange for land valued at $242,000 and a building valued at $368,000. Note: Enter debits before credits. Transaction General Journal Debit Credit 1arrow_forward1. Record, in journal entry form, the following transactions, assuming the company plans on holding the investments for trading purposes: April 16 - Purchased 300 shares of Ameco for $25 per share. • May 2 - Purchased 1,000 shares of Rattle Inc. for $12.50 per share. • June 19 - Sold 100 Ameco shares for $32.75 per share. • October 7 - Purchased 550 shares of BMC for $27.80 per share. • November 30 - Received a dividend of $0.25 per share from Rattle. • December 12 - Sold half the shares in BMC for $21.00 per share. 2. Record any required journal entries on December 31, the company's year-end.arrow_forwardSudoku Company issues 18,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $227,000 and the building at $365,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building. View transaction list Journal entry worksheet A Record the issue of 18,000 shares of $8 par value common stock in exchange for land valued at $227,000 and a building valued at $365,000. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journalarrow_forward
- Prepare journal entries to record the following investment-related transactions of a company for its first year of operations: On May 4, the company purchased 600 shares of Orbital Company Stock at $140 per share as a short-term investment in an available-for-sale security. On July 1, received a $2.50 per share cash dividend on the Orbital Company stock purchased in transaction (a). On September 15, sold 250 shares of Orbital Company stock purchased in transaction (a) for $85 per share On October 15, sold 100 shares of Orbital Company stock purchased in transaction (a) for $185 per sharearrow_forwardSudoku Company issues 7,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $45,000 and the building at $85,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.arrow_forwardSudoku Company issues 26,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $229,000 and the building at $368,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building. View transaction list Journal entry worksheet A Record the issue of 26,000 shares of $7 par value common stock in exchange for land valued at $229,000 and a building valued at $368,000. Note: Enter debits before credits. General Journal Debit Credit Transaction 1arrow_forward
- On January 3, Melrose Corporation purchased 1,800 shares of the company's $1 par value common stock as treasury stock, paying cash of $11 per share. On January 30, Melrose sold 1,450 shares of the treasury stock for cash of $12 per share. Journalize these transactions (Record debits first then credits Explanations will appear on the last line of the journal entry table.)arrow_forwardGlacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Instructions 1. Journalize the entries to record the preceding transactions. 2. Prepare the investment-related asset and stockholders equity balance sheet presentation for Glacier Products Inc. on December 31, Year 2, assuming that the Retained Earnings balance on December 31, Year 2, is 700,000.arrow_forwardForte Inc. produces and sells theater set designs and costumes. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Forte Inc., which has a fiscal year ending on December 31: Instructions 1. Journalize the entries to record these transactions. 2. Prepare the investment-related asset and stockholders equity balance sheet presentation for Forte Inc. on December 31, Year 2, assuming that the Retained Earnings balance on December 31, Year 2, is 389,000.arrow_forward
- Sudoku Company issues 20,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $226,000 and the building at $376,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building. View transaction list Journal entry worksheet A Record the issue of 20,000 shares of $8 par value common stock in exchange for land valued at $226,000 and a building valued at $376,000. Note: Enter debits before credits. Transaction 1 General Journal Debit Creditarrow_forwardExercise 11-6 (Algo) Stock issuance for noncash assets LO P1 Sudoku Company issues 30,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $236,000 and the building at $364,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building. No A Transaction 1 Answer is complete but not entirely correct. General Journal Land Building Common stock, $7 par value Paid-in capital in excess of par value, common stock ✓ Debit 236,000✔ 364,000 Credit 210,000 210,000 xarrow_forwardEntries for Stock Investments, Dividends, and Sale of Stock Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year: Feb. 2 Purchased for cash 1,550 shares of Wong Inc. stock for $37 per share plus a $775 brokerage commission. Mar. 16 Received dividends of $0.30 per share on Wong Inc. stock. June 7 Purchased 900 shares of Wong Inc. stock for $45 per share plus a $450 brokerage commission. July 26 Sold 1,800 shares of Wong Inc. stock for $49 per share less a $900 brokerage commission. Yerbury assumes that the first investments purchased are the first investments sold. Sept. 25 Received dividends of $0.40 per share on Wong Inc. stock. In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Feb. 2 Mar. 16 June…arrow_forward
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
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