Journalizing issuance of stock and preparing the stockholders’ equity section of the balance sheetThe charter for ASAP-TV, Inc. authorizes the company to issue 100,000 shares of $5, no-par preferred stock and 500,000 shares of common stock with $1 par value. During its start-up phase, ASAP- TV completed the following transactions:RequirementsRecord the transactions in the general journal.Prepare the stockholders’ equity section of the ASARTV balance sheet at September 30, 2018, assuming ASAP-TV, Inc. had net income of $38,000 for the month. Sep. 6 Issued 550 shares of common stock to the promoters who organized thecorporation, receiving cash of $16,500.12 Issued 400 shares of preferred stock for cash of $23,000.Issued 1,500 shares of common stock in exchange for land with a market14value of $17,000.

1. Date Account Titles and Explanation Debit Credit Sept. 6 Cash $16,500…

Sep. 6 Issued 550 shares of common stock to the promoters who organized the corporation, receiving cash of $16,500. 12 Issued 400 shares of preferred stock for cash of $23,000. Issued 1,500 shares of common stock in exchange for land with a market 14 value of $17,000.

Sep. 6 Issued 550 shares of common stock to the promoters who organized the corporation, receiving cash of $16,500. 12 Issued 400 shares of preferred stock for cash of $23,000. Issued 1,500 shares of common stock in exchange for land with a market 14 value of $17,000.

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

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 1MC

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Sep. 6 Issued 500 shares of common stock to the promoters who organized the corporation, receiving cash of $15,000. Sep. 12 Issued 700 shares of preferred stock for cash of $29,000. Sep. 14 Issued 1,400 shares of common stock in exchange for land with a market value of $23,000. Assume KVIP−TV, Inc. had net income of $31,000 for the month. Requirement 1. Record the transactions in the general journal. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Sep. 6: Issued 500 shares of common stock to the promoters who organized the corporation, receiving cash of $15,000. Date Accounts and Explanation Debit Credit Sep. 6 Part 2 Sep. 12: Issued 700 shares of preferred stock for cash of $29,000. Date Accounts and Explanation Debit…
Present entries to record the following: Issued 1,000 shares of $15 par common stock at $52 for cash. Issued 1,400 shares of common stock in exchange for equipment with a fair market price of $21,000. Purchase 100 shares of treasury stock at $25. Sold 100 shares of treasury stock at $28.
Jan. 10 Issued 90,000 ordinary shares for cash at $4 per share. Mar. 1 Issued 5,000 preference shares for cash at $110 per share. Apr. 1 Issued 25,000 ordinary shares for land. The asking price of the land was $90,000; the fair value of the land was $100,000. May 1 Issued 70,000 ordinary shares for cash at $8 per share. |Aug. 1 Issued 9,000 ordinary shares to attorneys in payment of their bill of $50,000 for services rendered in helping the company organize. 1- Abernathy Corporation was organized on January 1, 2019. It is authorized to issue 10,000 shares of 8%, $50 par value preference shares, and 500,000 shares of no-par ordinary shares with a stated value of $2 per share. The following share transactions were completed during the first year. Instructions Prepare the journal entries to record the above transactions.
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Apr. 9. Issued 21,500 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $78,000, $427,000, and $97,000, respectively. Apr. 9. Land ✓ Buildings Equipment Common Stock Paid-In Capital in Excess of Par-Common Stock Feedback ✓ ✔ Check My Work Record the assets, and increase the common stock account by the par value of the shares. Record any amount above par in a separate paid-in capital equity account. Recall that shares of stock can be issued to acquire assets. At what value must the preferred stock and common stock accounts be recorded? June 14. Issued 20,000 shares of preferred stock at $77 for cash. June 14, Cash ✓ Preferred Stock Paid-In Capital in Excess of Par-Preferred Stock ✓
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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
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