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. Required: Prepare journal entries to record the following: 1. The February 3 receipt of the down payment and signing of the contract.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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, 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.
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
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.…
Prepare Garzon Company's journal entries to record the following transactions for the current year. January 1 Purchases 8.5% bonds (as a held-to-maturity investment) issued by PBS at a cost of $52,800, which is the par value. June 30 Receives first semiannual payment of interest from PBS bonds. December 31 Receives a check from PBS in payment of principal ( $52,800) and the second semiannual payment of interest. View transaction list Journal entry worksheet 1 2 > Purchases 8.5% bonds (as a held-to-maturity investment) issued by PBS at a cost of $52,800, which is the par value. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal
Crane Ltd. offered to sell common shares on a subscription basis. Each subscription allowed for the purchase of 20 shares at a price of $52 per share. Terms of the subscription stated that subscribers were to pay 45% of the price as a down payment, with the remainder due in six months. On June 1, 2023, 180 subscriptions were sold. Six months later, on December 1, only 90 of the subscriptions were fully paid for. According to the subscription contract, the company would retain the down payment on any defaulted subscriptions. (a) Prepare the journal entries to record the above transactions. (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.) Date Account Titles and Explanation Debit Credit
In January 2019, ABC Limited called for subscriptions for 12 millions of shares. The issue price per share was $1.0 to be paid in four parts, these being $0.4 on application, $0.3 in the first call on 31 March, $0.20 in the second call on 31 July and $0.10 in the third call on 30 September. Required Provide the accounting entries to record the issue of ABC Limited’s shares. (BY HAND, not by excel)
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On July 1, Year 1, Danzer Industries Inc. issued $56,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $44,803,360. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries: If an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. Year 1 July 1 Cash Cash Discount on Bonds Payable Discount on Bonds Payable Bonds Payable Bonds Payable 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) Year 1 Dec. 31 Interest Expense Interest Expense Discount on Bonds Payable Discount on Bonds Payable Cash Cash b.…
Nash's Trading Post, LLC is authorized to issue 1,000,000 shares of $1 par value common stock. During 2020, the company has the following stock transactions. Jan. 15 Sept. 5 Dec. 6 Journalize the transactions for Nash's Trading Post, LLC. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Jan. 15 Issued 700,000 shares of stock at $5 per share. Purchased 20,000 shares of common stock for the treasury at $8 per share. Declared a $0.50 per share dividend to stockholders of record on December 20, payable January 3, 2021. Sept. 5 V Dec. 6 Account Titles and Explanation Cash Common Stock Paid-in Capital in Excess of Par Value-Common Stock Treasury Stock Cash Cash Dividends Dividends Payable Debit 160000 II Credit 160000
On the first day of the fiscal year, a company issues a $967,000, 8%, 10-year bond that pays semiannual interest of $38,680 ($967,000 x 8% x 1/2), receiving cash of $1,015,400. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select -
On July 1, Year 1, Danzer Industries Inc. issued $24,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $19,201,440. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries: If an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) 3. Determine the total interest expense for Year 1.