FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Spring Company is authorized to issue 500,000 shares of $1 par value common stock. In its first year, the company has the following transactions:
Mar. 1 |
Issued 40,000 shares of stock at $9.75 per share |
Apr. 10 |
Issued 1,000 shares of stock for legal services valued at $10,000. |
Oct. 3 |
Purchased 1,000 shares of |
Journalize the transactions and calculate how many shares of stock are outstanding at August 3.
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- During 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_forwardSelected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, Year 1, were as follows: Record on journal page 10: Jan. 3 Issued 15,000 shares of $20 par common stock at $30, receiving cash. Feb. 15 Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. May 1 Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. 16 Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held and 20,000 shares of preferred stock were outstanding. Journalize this transaction as two separate entries. 26 Paid the cash dividends declared on May 16. Jun. 1 Purchased 7,500 shares of Solstice Corp. at $40 per share plus a $150 brokerage commission. The investment is classified as an available-for-sale investment. 8 Purchased 8,000 shares of treasury common stock…arrow_forwardSpring Company is authorized to issue 7500,000 shares of $2 par value common stock. In its first year, the company has the following transactions: March 1: Issued 400,000 shares of stock at $9.75 per share June 15: Purchased 10,000 shares of treasury stock for $9 per share Sept 1: Declared a cash dividend of 10-cents per share on common stock Sept. 15: Record date for cash dividend Oct, 1: Paid cash dividend Journalize the transactions.arrow_forward
- When Wisconsin Corporation was formed on January 1, the corporate charter provided for 86,000 shares of $8 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 6,710 shares of stock at a price of $21 per share. The entry to record the above transaction would include a a.debit to Common Stock for $86,000 b.credit to Common Stock for $140,910 c.debit to Cash for $53,680 d.credit to Paid-in Capital in Excess of Par for $87,230arrow_forwardFortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions: Jan. 31 Issued 38,000 shares at $9 share. Jun. 10 Issued 120,000 shares in exchange for land with a clearly determined value of $830,000. Aug. 3 Purchased 10,000 shares of treasury stock at $8 per share. A. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Jan. 31 __________ __________ __________ __________ __________ __________ Jun. 10 __________ __________ __________ __________ __________ __________ Aug. 3 __________ __________ __________ __________ B. Calculate how many shares of stock are outstanding at August 3. __________ sharesarrow_forwardWhen Wisconsin Corporation was formed on January 1, the corporate charter provided for 115,800 shares of $15 par value common stock. During its first month of operation, the corporation issued 7,940 shares of stock at a price of $25 per share. The journal entry for this transaction would include a a.credit to Common Stock for $198,500 b.debit to Cash for $119,100 c.credit to Paid-In Capital in Excess of Par—Common Stock for $79,400 d.debit to Common Stock for $115,800arrow_forward
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