Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
26th Edition
ISBN: 9781305714731
Author: Warren/Reeve/Duchac
Publisher: Cengage
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Chapter 13, Problem 13.7EX
Issuing stock
Willow Creek Nursery, with an authorization of 75,000 shares of
| Cash..................................................... | 3,780.000 | |
| Land..................................................... | 840,000 | |
| Buildings................................................. | 2,380,000 | |
| Preferred 1% Stock, $80 par............................... | 2,800,000 | |
| Paid In Capital in Excess of Par—Preferred Stock........... | 420,000 | |
| Common Stock. $30 par.................................. | 3,600,000 | |
| Paid In Capital in Excess of Par—Common Stock........... | 180,000 | |
| 7,000,000 | 7,000,000 |
All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings.
Journalize the two entries to record the transactions summarized in the trial balance.
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El Cemí Enterprises
Stockholders equity section presents the following balances for January 1st:
Common Stock, $8 par value (800,000) Shares authorized
500,000 shares issued......................................................................$5,600,000
Paid in Capital in Excess of Par-Common Stock.............................. $650,000
Retained earnings............................................................................. $8,120,000
Treasury stock at cost-Common (50,000 shares at cost)..................$650,000
Additional information:
Transactions during the year
January 3 - Paid cash dividens at $0.15 each common stock. The cash dividends were registered in last year declaration for $67,500.
March 20 - The company issued 80,000 common stock for $1,100,000.
May 5 - The company declared 3% of common stock dividend. The market stock rate is at $15 each share.
July 8 - Company sold all their Treasury stocks for $820,000
September 4 - Company issued the certificates for May…
Stockholders equity section presents the following balances for January 1st:
Common Stock, $8 par value (800,000) Shares authorized
500,000 shares issued......................................................................$5,600,000
Paid in Capital in Excess of Par-Common Stock.............................. $650,000
Retained earnings............................................................................. $8,120,000
Treasury stock at cost-Common (50,000 shares at cost)..................$650,000
Make the entry for this date:
May 5 - The company declared 3% of common stock dividends. The market rate price is at $15 per share.
The equity sections for Layfette Group at the beginning of the year (January1) and end of they year ( December 31) follow
Stockholders Equity Jan.1
Common stock - 10$ par value 130,000 shares authorized, 50,000 shares issued and outstanding.........................................................................................................500,000$
Paid-in-Capital inexcessof par value,commonstock...............................75,000$
Retained Earnings................................................................................................410,000
Total Stockholder Equity...................................................................................985,000
Stock Holder equity Dec.31
Common Stock -10$ par value 130,000 shares authorized 54,650 shares issued and outstanding.......................................................................................546,500
Paid-in-capital in excess of par value, commonstock.............................130,000
Retained earnings…
Chapter 13 Solutions
Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
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