FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Related questions
Question
Early in the year Bill Sharnes and several friends organized a corporation called Sharnes Communication, Inc. the corporation was authorized to issue 50,000 shares of $100 par value, 10 percent cumulative
Jan. 6, I issued for cash 20,000 shares common stock at $14 per share. The shares were issued to Sharnes and 10 other investors.
Jan. 7 issued an additional 500 shares of common stock to Sharnes in exchange for his services in organization corporation. The stockholders agreed that these services were worth $7,000.
Jan. 12 issue d 2,500 shares of preferred stock cash of $250,000
June14 acquired land as a building site exchange for 15,000 shares of common stock. In view of the appraised value of the land and the progress of the company, the directors agreed that common stock was to be value for purpose of this transaction at $15 per share.
Nov. 15 the firs annual dividends of $10 per share was declared on the preferred stock to be paid December 20.
Dec. 20 paid cash dividend declared on November 15.
Dec. 31 after the revenue and expense were closed int income summary account, that account indicated a net income of $147,200.
- Prepare
journal entries in general journal form to record these transactions. Include entries ta December 31 to close the Income Summary account and the Dividends account.
2. Prepare
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution
Trending nowThis is a popular solution!
Step by stepSolved in 4 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Upon submitting its corporate charter to the state, Lazer was granted permission to issue 6,000 shares of $0.30 par value common stock. Net income for the year for Lazer was $98,400. In addition, the following transactions took place during the year: January 2: March 12: Investors paid Lazer $7 each for 2,520 shares of common stock Lazer purchases 600 shares of its own common stock for $6.50 per share October 31: Lazer declared a 2-for-1 forward stock split As of December 31, how many shares are issued, and how many shares are outstanding? Select one: О a. Issued, 4,080; Outstanding, 2,520 O b. Issued, 4,080; Outstanding, 5,040 O c. Issued, 5,040; Outstanding, 1,920 о d. Issued, 5,040; Outstanding, 3,840arrow_forwardEllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 6% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Mar. 1 Purchased 1,500 shares of its own common stock at $17 per share. Apr. 10 Reissued 750 shares of its common stock held in the treasury for $21 per share. Jun. 12 Reissued 750 shares of common stock at $15 per share. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank.arrow_forwardEarly in the year Bill Sharnes and several friends organized a corporation called Sharnes Communications, Inc. The corporation was authorized to issue 50,000 shares of $100 par value, 10 percent cumulative preferred stock and 400,000 shares of $2 par value common stock. The following transactions (among others) occurred during the year. Jan. 6 Issued for cash 20,000 shares of common stock at $14 per share. The shares were issued to Sharnes and 10 other investors. Jan. 7 Issued an additional 500 shares of common stock to Sharnes in exchange for his services in organizing the corporation. The stockholders agreed that these services were worth $7,000. Jan. 12 Issued 2,500 shares of preferred stock for cash of $250,000. June 4 Acquired land as a building site in exchange for 15,000 shares of common stock. In view of the appraised value of the land and the progress of the company, the directors agreed that the common stock was to be valued for purposes of this transaction…arrow_forward
- Uramilabenarrow_forwardUnited Resources Company obtained a charter from the state in January of this year. The charter authorized 211,000 shares of common stock with a par value of $1. During the year, the company earned $477,000. Also during the year, the following selected transactions occurred in the order given: a. Sold 98,000 shares of the common stock in an initial public offering for $18 per share. b. Repurchased 29,000 shares of the previously issued shares for $21 per share and is holding them as treasury stock. c. Resold 4,000 shares of treasury stock for $24 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated with a minus sign. Stockholders' equity: Contributed capital: UNITED RESOURCES COMPANY Balance Sheet (Partial) At December 31, This year Total contributed capital Total stockholders' equityarrow_forwardDuring its first year of operations, Buffalo Corporation had the following transactions pertaining to its common stock. Jan. Issued 84,800 shares for cash at $6 per share. 10 Issued 5,000 shares to attorneys in payment of a bill for $37,000 for services rendered in helping the company to incorporate. Mar. 1 July Issued 32,700 shares for cash at $8 per share. 1 Sept. Issued 61,700 shares for cash at $10 per share. 1arrow_forward
- Orlando Corporation incorporated on January 2 of the current year. During the year, Orlando had the following transactions: • Issued 20,000 shares of common stock at $25 per share. The par value per share is $1. • Purchased 1,000 shares of treasury stock at $27 per share. • No dividends were declared during the year. • The net income of $400,000. What is the total amount of stockholders' equity as of December 31 of the current year? A. $500,000 B. $900,000 C. $527,000 O D. $873,000arrow_forwardEllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of $50 par value 8% preferred stock. It is also authorized to issue 1,750,000 shares of $1 par value common stock. In its fifth year, the corporation has the following transactions: Mar. 1 Purchased 1,500 shares of its own common stock at $12 per share. Apr. 10 Reissued 750 shares of its common stock held in the treasury for $16 per share. Jun. 12 Reissued 750 shares of common stock at $10 per share. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Mar. 1 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 Apr. 10 fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 Jun. 12 fill in the blank 17 fill in the blank 18 fill in the blank 20 fill in the blank 21 fill in the…arrow_forwardThe following is from the 2024 annual report of Kaufman Chemicals, Incorporated: Statements of Comprehensive Income Net income Other comprehensive income: Change in net unrealized gains on AFS investments, net of tax of $31, ($19), and $21 in 2024, 2023, and 2022, respectively Other Total comprehensive income ($ in millions) Shareholders' equity: Common stock Additional paid-in capital Retained earnings Accumulated other comprehensive income Total shareholders' equity Accumulated other comprehensive income, 2023 Kaufman reports accumulated other comprehensive income in its balance sheet as a component of shareholders' equity as follows: Accumulated other comprehensive income, 2024 2024 $395 9,383 8,463 138 $ 18,379 ($ in millions) Years Ended December 31 2023 2024 2022 $818 $ 673 $988 44 (2) $ 1,030 2023 (27) (3) $788 $395 9,383 7,907 96 $ 17,781 Required: 3. From the information provided, determine how Kaufman calculated the $138 million accumulated other comprehensive income in 2024.…arrow_forward
- Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: a. Collected $900,000 cash and issued 30,000 shares of common stock. b. Issued 20,000 shares of preferred stock at $40 per share; collected in cash. Net income for the year was $60,000; cash dividends declared and paid at year-end were $11,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital:arrow_forwardThe Estrella Corporation purchased 5,000 outstanding shares (which had previously been issued) from its shareholders and paid $250,000.00 for them. Sometime after this transaction, he resold 2,000 shares for $53 per share, then resold another 2,000 shares for $48 per share, and finally resold 1,000 shares for $43 per share. Prepare journal entries for the purchase of outstanding shares and the three sales of treasury shares. You must record each and every transaction in the Treasury Stock Journal. Compose the results of implemented calculationsarrow_forwardDuring its first year of operations, Bramble Corporation had the following transactions pertaining to its common stock. Jan. 10 Issued 81,500 shares for cash at $6 per share. Mar. 1 Issued 5,000 shares to attorneys in payment of a bill for $36,200 for services rendered in helping the company to incorporate. July 1 Issued 33,300 shares for cash at $8 per share. Sept. 1 Issued 62,400 shares for cash at $10 per share. (a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share. (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 0 for the amounts. Record entries in the order displayed in the problem statement.)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education