Heart Corporation entered into a subscription contract with several subscribers. The contract requires the subscribers to purchase 2,000 shares of $4 par common stock at a price of $20 per share. The contract requires a down payment of $5 per share, with the remaining $15 per share collectible at the end of one month. The stock will be issued to each subscriber upon full payment. Prepare the journal entry to record this transaction.View Solution: Heart Corporation entered into a subscription contract with several subscribers

Heart Corporation entered into a subscription contract with several subscribers. The contract requires the subscribers to purchase 2,000 shares of $4 par common stock at a price of $20 per share. The contract requires a down payment of $5 per share, with the remaining $15 per share collectible at the end of one month. The stock will be issued to each subscriber upon full payment. Prepare the journal entry to record this transaction.View Solution: Heart Corporation entered into a subscription contract with several subscribers

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 17E

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Prepare general journal entries for the following transactions, identifying each transaction by letter: (a) Gnu Company issued 5,000 shares of 1 par common stock to the Prendergas law firm as partial payment of fees incurred to incorporate the business. Gnu was short of cash, so Prendergas agreed to accept 10,000 cash and the shares of common stock in full settlement of its bill for 55,000. (b) Gnu issued 50,000 shares of 1 par common stock in exchange for a parcel of land for building a shopping plaza. (The list price for the land was 400,000; a similar parcel in the same area sold last week for 380,000. During the past month, the price at which Gnus common stock has traded on the open market has ranged from 5 to 12 per share. Two trades occurred yesterday at 7 and 10 per share.) (c) Gnu purchased 10,000 shares of 1 par value common treasury stock for 70,000. (This is the only treasury stock that Gnu holds.) (d) Gnu sold 4,000 shares of common treasury stock for 32,000. (e) Gnu sold 5,000 shares of common treasury stock for 30,000.
Righty, Inc., entered into a stock subscription contract that called for the purchase by investors of 10,000 shares of $10 par common stock at a price of $43 per share. The contract required a down payment of $20 per share, with the remaining $23 per share collectible at the end of three months. Required: a. Prepare the journal entry to record the stock subscription and down payment. b. The subscribers paid the remainder at the end of three months. Prepare the journal entry(ies) to record the final payment and the issuance of the shares of stock.
On February 3, Year 1, Teel Corporation enters into a subscription contract with several subscribers for 7,000 shares of $5 par common stock at a price of $15 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3, Year 1. The stock will be issued to each subscriber upon full payment. Prepare journal entries to record the following: 1. The February 3 receipt of the down payment and signing of the contract.
On February 3, Year 1, Teel Corporation enters into a subscription contract with several subscribers for 7,000 shares of $5 par common stock at a price of $15 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3, Year 1. The stock will be issued to each subscriber upon full payment. Required: Prepare journal entries to record the following: 1. The February 3 receipt of the down payment and signing of the contract.
On February 3, Year 1, Teel Corporation enters into a subscription contract with several subscribers for 7,000 shares of $5 par common stock at a price of $15 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3, Year 1. The stock will be issued to each subscriber upon full payment. The May 3 receipt of the full remaining balance from subscribers. The market price is currently $16 per share
On February 3, 2019, Teel Corporation enters into a subscription contract with several subscribers for 5,000 shares of $10 par common stock at a price of $16 per share. The contract requires a down payment of 25%, with the remaining balance to be paid on May 3, 2019. The stock will be issued to each subscriber upon full payment. Required: Prepare journal entries to record the following: 1. The February 3 receipt of the down payment and signing of the contract. 2. The May 3 receipt of the full remaining balance from subscribers. The market price is currently $17 per share.
Shott Farm Supplies Corporation purchased 800 shares of General Motors stock at $50 per share and paid a brokerage fee of $1,200. Two months later, the shares were sold for $53 per share. The brokerage fee on the sale was $1,300. Required: Prepare entries for the purchase and the sale.
You are buying 1000 shares of Facebook on January 1, 2021. You paid $320 per share plus a brokerage commission of $84. Calculations: Date Debit Credit Db Cr b) You sell 150 shares of Facebook stock on 30 May, 2021 for $315 per share, less a $55 brokerage commission. Calculations: Date Debit Credit Db Cr 2.a) Assume that on January 1, 2021, a six-month, 12% note receivable is acquired from a customer in settlement of an existing account receivable of $50000. Date Debit Credit Db Cr b) On July 1, 2021 (6 months after the date of the note), the note matures. Customer pays in cash Calculations: Date Debit Credit Db Cr
On March 1, 2020, Seokjin Corporation received subscription for 1,600 Preference Shares with P 300 par value at P 308 per share. During the month, the corporation issued 2,100 Preference shares at P 330 per share. The corporation also received subscription for 1,000 Preference shares at par and then collected the full payment from half of these subscribers after a week of the same month. If the corporation was authorized to issue 7,000 shares, how many shares are still available for subscription?
GIFFCO contracted with the investment bank X.M. Retzoff to issue 25 million of short-term paper. The securities have a two year maturity, 3.75% rate and pay at the end of each quarter. Fees and commissions to Retzoff and GIFFCO's accountants came to 475,000. Assuming that GIFFCO issued the securities on January 1, book that transaction and the first interest accrual.
Rip-Off Fuels Inc. is an operator of gas stations. On March 1, 2022, they issued subscriptions for 100,000 common shares for an issue price of $30. A deposit of 30% was made by all subscribers on that date, and the balance is to be remitted on August 1. Assuming that on August 1, subscriptions representing 3,000 shares failed to remit the balance due- and forfeit their deposit. [27] The journal entry to record the August 1 receipt of amountS paid by subscribers, and subsequent forfeiture would be: Select one: a. DR Cash $2,100,000CR Share subscription receivable $2,037,000CR Contributed surplus-forfeiture $ 73,000 b. DR Cash $2,037,000CR Share subscription receivable $2,100,000DR Common shares subscribed $90,000CR Contributed surplus-forfeiture $27,000 c. Cash $2,037,000CR Share subscription receivable $2,037,000DR Common shares subscribed $27,000CR Contributed surplus-forfeiture $27,000. d. DR Cash $2,037,000CR Share subscription receivable $2,037,000 e. None of…
Shrek Inc., had issued subscriptions for common shares on March 1, 2020. 40% of the subscription was to be paid by the subscribers on April 1 and the balance on June 1. The company would thereafter issue the shares on June 15. On April 1, the company received the funds for the first instalment and prepared the following journal entry to record the transaction: DR Cash $446,400 CR Share Subscription Receivable $446,400 On June 1, 2,000 subscribers failed to pay the second instalment and their subscriptions were forfeited. The company received the funds due on the second instalment from the remaining subscribers and prepared the following journal entry to record the transaction: DR Cash $648,000 CR Share Subscription Receivable $648,000 For how many shares were subscriptions issued by Shrek on March 1, 2020? Select one: a.…