Record in the general journal, including explanations for Flower Incorporation from the following transactions: Issued capital stock of 34000 shares at $11.50 per shares and received cash. Purchased a proton car from Lee Company for $7000 on account, 2/10 term. Provided service on account to Pearson Inc. and billed $71 450. December 1 2 4 9. Paid to Lee Company as full settlement. 15 Obtain an overdraft facility of $30000 from AIA Bank. 20 Purchased a Plant from Dynasty's Warehouse for $25 000; paid $10,000 cash and issued a note payable due in 10 days for the balance.

Record in the general journal, including explanations for Flower Incorporation from the following transactions: Issued capital stock of 34000 shares at $11.50 per shares and received cash. Purchased a proton car from Lee Company for $7000 on account, 2/10 term. Provided service on account to Pearson Inc. and billed $71 450. December 1 2 4 9. Paid to Lee Company as full settlement. 15 Obtain an overdraft facility of $30000 from AIA Bank. 20 Purchased a Plant from Dynasty's Warehouse for $25 000; paid $10,000 cash and issued a note payable due in 10 days for the balance.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1CP: Prepare general journal entries for the following transactions, identifying each transaction by...

See similar textbooks

Similar questions

The articles of incorporation for Peahen Corp. authorize the company to issue 100,000 $6 preferred shares and 500,000 common shares. During first year of operations, Peahen Corp. completed the following selected transactions: (Click the icon to view the transactions.) Required 1. Record the transactions in the general journal. 2. Prepare the shareholders' equity section of the Peahen Corp. balance sheet at November 30, 2020. Requirement 1. Record the transactions in the journal. (Record debits first, then credits. Explanations are not required.) Dec. 4, 2019: Issued 6,000 common shares to the consultants who formed the corporation, receiving cash of $180,000. Date Dec. Journal Entry Accounts Debit Credit
Prepare journal entries to record the following transactions involving both the short-term and long-term investments of Cancun Corp., all of which occurred during the current year. a. On February 15, paid $160,000 cash to purchase GMI’s 90-day short-term notes at par, which are dated February 15 and pay 10% interest (classified as held-to-maturity). b. On March 22, bought 700 shares of Fran Inc. common stock at $51 cash per share. Cancun’s stock investment results in it having an insignificant influence over Fran. c. On May 15, received a check from GMI in payment of the principal and 90 days’ interest on the notes purchased in part a. d. On July 30, paid $100,000 cash to purchase MP Inc.’s 8%, six-month notes at par, dated July 30 (classified as trading securities). e. On September 1, received a $1 per share cash dividend on the Fran Inc. common stock purchased in part b. f. On October 8, sold 30 shares of Fran Inc. common stock for $54 cash per share. g. On October 30, received a…
Marigold Corporation purchased 420 shares of Nolan Inc. common stock for $14,200 (Marigold does not have significant influence). During the year, Nolan paid a cash dividend of $3.25 per share. At year-end, Nolan stock was selling for $35.00 per share. (a) Prepare Marigold's journal entry to record the purchase of the investment. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
North Ltd acquired $100,000 of shares in South Ltd for trading purposes on 1 January 20X3. Transaction costs of $2,000 were incurred. The fair value of the shares at 31 December 20X3 was $120,500. Choose the account names and calculate the amount that correctly account for this investment on 31 December 20X3 (amount for the credit entry is not required). ENTER YOUR ANSWER IN "Amount" WHOLE NUMBERS WITH NO COMMAS OR DOLLAR SIGNS (EG $1,000,000 SHOULD BE SHOWN AS 1000000; -$1,000,000 SHOULD BE SHOWN AS -1000000). Dr Cr Financial asset Expense Cash Ple Gain in FV-OCI Financial liability Gain in FV-P&L ◆ Amount Amount not required of the question.
On May 20, Montero Company paid $240,000 to acquire 105 shares (5%) of ORD Corporation as a long-term investment. On August 5, Montero sold one-tenth of the ORD shares for $25,500. 1. Prepare entries to record both the acquisition and the sale of these shares. 2. Should this stock investment be reported at fair value or at cost on the balance sheet? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare entries to record both the acquisition and the sale of these shares. View transaction list
On May 20, Montero Company paid $180,000 to acquire 55 shares (9%) of ORD Corporation as a long-term investment. On August 5, Montero sold one-tenth of the ORD shares for $20,500. 1. Prepare entries to record both the acquisition and the sale of these shares. 2. Should this stock investment be reported at fair value or at cost on the balance sheet? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare entries to record both the acquisition and the sale of these shares. View transaction list Journal entry worksheet 1 2 > On May 20, Montero Company paid $180,000 to acquire 55 shares (9%) of ORD Corporation as a long-term investment. Note: Enter debits before credits. Date General Journal Debit Credit May 20 Record entry Clear entry View general journal
Blue Spruce Corporation purchased 300 common shares of Burke Inc. for $22,830 and accounted for them using FV-OCI. During the year, Burke paid a cash dividend of $3.45 per share. At year end, Burke shares had a fair value of $72.50 per share. (a) Prepare Blue Spruce's journal entry to record the purchase of the investment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Debit Credit
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 Gnu’s 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)…
Dabin Company purchased a P1,000,000 ordinary life insurance policy for its president. The beneficiary of the life insurance policy is Dabin Company. The policy year and the entity's accounting year coincide. The entity provided the following data for the current year: Cash surrender value, January 1 43,500 Cash surrender value, December 31 Annual advance premium paid January 1 Dividend received July 1 54,000 20,000 3,000 What amount should be reported as life insurance expense for the current year? O 17,000 20,000 6,500 9,500
Bula Investments acquired $240,000 of Effenstein Corp., 8% bonds at their face amount on October 1, 20Y1. The bonds pay interest on October 1 and April 1. On April 1, 20Y2, Bula sold $90,000 of Effenstein Corp. bonds at 102. Journalize the entries to record the following selected transactions: Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Question Content Area a. The initial acquisition of the Effenstein Corp. bonds on October 1, 20Y1. 20Y1, Oct. 1 Investments-Effenstein Corp. Bonds Investments-Effenstein Corp. Bonds Cash Cash Question Content Area b. The adjusting entry for 3 months of accrued interest earned on the Effenstein Corp. bonds on December 31, 20Y1. 20Y1, Dec. 31 Interest Receivable Interest Receivable Interest Revenue Interest Revenue Question Content Area c. The receipt of semiannual interest on April 1, 20Y2.…
2. January 1, John Smith formed a corporation. Record the following transactions that took place during the year ended December 31, 1990 on the attached sheet. The corporation records transactions on an accrual basis. Record contribution of $25,000 cash for Capital Stock. Leased a building at a cost of $10,000 per year on 1/1/90. Purchased inventory for resale at a cost of $20,000 payable June 15, 1991. Sold one-fourth of the inventory for $5,000 cash and $5,000 on account. Collected $2,500 on account. Paid salaries as follows: Gross Pay $954 158 Federal withholding FICA withholding Net Pay 46 $750 Paid taxes withheld and company's share of FIICA ($46) to the government. Transaction for the Year Credits Debits Cash Accounts Receivable Inventory Accounts Payable Accrued Payroll Taxes Capital Stock Retained Earning (Net Income) Sales Cost of Sales Salaries Payroll Taxes Lease Expense Income Taxes Total Transactions
Prepare a General Journal, a General Ledger and an unadjusted trial balance for the following: The articles of incorporation for Bella Computers specified that the corporation was authorized to issue 1 million shares of common stock; par value was set at $10 per share. During the meeting, stock certificates for 5,000 shares of $10.00 par stock were issued to Dale and Lee, each. Dale and Lee each wrote personal checks for $50,000 for deposit in the new business bank account. As officers of the new Bella Computers Company, Dale and Lee, were both required to sign all company expense checks. As soon as the meeting ended Dale and Lee drove to the warehouse facilities that they had arranged to lease for one year. The lease would be a 1-year prepaid lease for the sum of $1,000 per month. The company wrote a check that day to the real estate company for the entire sum for the first year’s lease. Also on June 1, Bella Computers paid deposits to the Electric Company for initial service hook-up.…