Prepare journal entries for the transactions listed below and post them to the T-accounts. a. Issued 7,500 shares of stock with a par value of $0.10 to the three owners (2,500 shares each) for $75,000 in cash. b. Purchased a short-term investment for $10,000 cash. c. Purchased 2 acres of land for $20,000, paid $5,000 in cash and signed a 2 year not for the remainder.

Prepare journal entries for the transactions listed below and post them to the T-accounts. a. Issued 7,500 shares of stock with a par value of $0.10 to the three owners (2,500 shares each) for $75,000 in cash. b. Purchased a short-term investment for $10,000 cash. c. Purchased 2 acres of land for $20,000, paid $5,000 in cash and signed a 2 year not for the remainder.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 24CE

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Prepare journal entries for the transactions listed below and post them to the T-accounts. a. Issued 7,500 shares of stock with a par value of $0.10 to the three owners (2,500 shares each) for $75,000 in cash.b. Purchased a short-term investment for $10,000 cash.c. Purchased 2 acres of land for $20,000, paid $5,000 in cash and signed a 2 year not for the remainder.d. Bought $900 of supplies on account.e. Sold 1/2 acre of land for $5,000. Accepted a note to receive payment in one year.f. Purchased $10,000 of equipment in cash.g. Paid $500 on account for supplies purchased in transaction (d).
Assume all investments are short-term and readily marketable. The following transactions occurred. June 2; purchased 300 shares of Beaty Corporation common stock for $45 per share; July 1; purchased 200 Meng Corporation bonds for $220,000; July 30; received a cash dividend of $2 per share from Beaty Corporation; September 15; sold 90 shares of Beaty Corporation stock for $50 per share; December 31; received semiannual interest check for $11,000 from Meng Corporation December 31; received a cash dividends of $2 per share from Beaty Corporation. Instructions: journalize the transactions.
Prepare a classified balance sheet for Lantana Company. a. Issued 7,500 shares of stock with a par value of $0.10 to the three owners (2,500 shares each) for $75,000 in cash.b. Purchased a short-term investment for $10,000 cash.c. Purchased 2 acres of land for $20,000, paid $5,000 in cash and signed a 2 year not for the remainder.
Bonneau Company had the following transactions relating to investments in available-for-sale securities during the year. Prepare the required general journal entries for these transactions:July 4 Bonneau purchased 400 shares of Crossley Company stock at $120 per share plus a $400 brokerage fee. These stocks will be classified as Available-for-Sale securities.Sept 15 Bonneau received a $1.50 per share cash dividend on the Crossley Company stock.Dec 31 The fair value of the Crossley Company stock (the only investment that Bonneau owns) is $125 per share. The balance of the Fair value Adjustment—AFS account had a zero balance prior to adjustment.
Loretta Inc. issues 2,000 shares of preferred stock in exchange for land and building that have a fair value of $50,000 and $80,000 respectively. What is included in the journal entry to record this transaction? a. A debit to Land and Building for $130,000 b. A debit to Land for $80,000 c. A credit to Preferred Stock for $130,000 d. A credit to Preferred Stock for $2,000
The 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 calculations
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…
On February 1, Brutus Company purchased 1,000 shares (2% ownership) of Wynne Company common stock for $25 per share. On March 20, Brutus Company sold 200 shares of Wynne stock for $4,700. Brutus received a dividend of $1.20 per share on April 25. On June 15, Marcus sold 300 shares of Wynne stock for $8,500.Prepare the journal entries to record the transactions described above. (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.) Date Account Titles and Explanation Debit Credit Feb. 1Mar. 20Apr. 25June 15 Feb. 1Mar. 20Apr. 25June 15 Feb. 1Mar. 20Apr. 25June 15 Feb. 1Mar. 20Apr. 25June 15
1) The following transactions took place in June for the Holista Corporation: June 1 Issued 1,000 shares of $100 preferred shares. 10 Issued 3,000 common shares for $18 per share. 15 Received land with a fair value of $60,000 and a building with a fair value of $180,000 in exchange for 15,000 common shares. Prepare journal entries for the above transactions.
Prepare Riley Company's journal entries to record the following transactions for the current year. April 18 Purchases 410 common shares of XLT Co. as a short-term investment at a cost of $53 per share. With this stock investment, Riley has an insignificant influence over XLT. May 30 Receives $1.00 per share from XLT in dividends. Purchases 410 common shares of XLT Co. as a short-term investment at a cost of $53 per share. With this stock investment, Riley has an insignificant influence over XLT on April 18. Note: Enter debits before credits. Date General Journal Debit Credit Apr 18 Receives $1.00 per share from XLT in dividends on May 30. Note: Enter debits before credits. Date General Journal Debit Credit May 30
The following selected transactions occurred for Corner Corporation: Feb. 1 Purchased 400 shares of the company’s own common stock at $20 cash per share; the stock is now held in treasury. July 15 Issued 100 of the shares purchased on February 1 for $30 cash per share. Sept. 1 Issued 60 more of the shares purchased on February 1 for $15 cash per share. Required: Show the effects of each transaction on the accounting equation. Give the indicated journal entries for each of the transactions. What impact does the purchase of treasury stock have on dividends paid? What impact does the reissuance of treasury stock for an amount higher than the purchase price have on net income?
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Cash Items Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Long-term liabilities Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses Padre Company Book Values 12/31 $ 486,500 250,500 490,000 637,500 840,000 317,000 (382,000) (169,000) (1,140,000) (660,000) 0 (70,000) (547,500) (1,034,000) 981,000 Sol Company Book Values Fair Values 12/31 12/31 $ 67,350 $ 67,350 391,000 391,000 301,000 356,300 182,700 364,900 260,100 (166,000) (42,750) (625,000) 203,000 303,000 226,000 (166,000) (42,750) (625,000) 0 (210,000) (90,000) (333,000) (431,600) 407,000 0 0 0