Splish Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of thenew job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, hemade the following entries for the corporation's capital stock.Date Account Titles and ExplanationMay 2 CashCapital Stock(Issued 13,000 shares of $5 par value common stock at $16 per share)May 10 CashCapital Stock(Issued 11,000 shares of $40 par value preferred stock at $80 per share)May 15 Capital StockCash(Purchased 1,200 shares of common stock for the treasury at $14 per share)May 31 CashCapital StockGain on Sale of Stock(Sold 740 shares of treasury stock at $18 per share)Debit Credit208,000880,00016,80013,320208,000880,00016,8007,4005,920On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions. (Listall debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If noentry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problemstatement.) On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions. (Listall debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If noentry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problemstatement.)DateAccount Titles and ExplanationDebitTUO11Credit

A journal entry is a basic accounting record that is used to chronologically track financial…

w job, the accountant was unable to review what he had learned earlier about corporation accounting. During the de the following entries for the corporation's capital stock. Date Account Titles and Explanation May 2 Cash Capital Stock (Issued 13,000 shares of $5 par value common stock at $16 per share) ay 10 Cash Capital Stock Debit Credit 208,000 880,000 208,000 880,000

w job, the accountant was unable to review what he had learned earlier about corporation accounting. During the de the following entries for the corporation's capital stock. Date Account Titles and Explanation May 2 Cash Capital Stock (Issued 13,000 shares of $5 par value common stock at $16 per share) ay 10 Cash Capital Stock Debit Credit 208,000 880,000 208,000 880,000

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...

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Entries for selected corporate transactions Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises stockholders equity accounts, with balances on January 1, 20Y6, are as follows: The following selected transactions occurred during the year: Instructions 1. Enter the January 1 balances in T accounts for the stockholders equity accounts listed. Also prepare T accounts for the following: Paid-In Capital from Sale of Treasury Stock; Stock Dividends Distributable; Stock Dividends; Cash Dividends. 2. Journalize the entries to record the transactions, and post to the eight selected accounts. Assume that the closing entry for revenues and expenses has been made and post net income of 1,125,000 to the retained earnings account. 3. Prepare a statement of stockholders equity for the year ended December 31, 20Y6. Assume that net income was 1,125,000 for the year ended December 31, 20Y6. 4. Prepare the Stockholders Equity section of the December 31, 20Y6, balance sheet.
Concord Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation’s capital stock. Date Account Titles and Explanation Debit Credit May 2 Cash 208,000 Capital Stock 208,000 (Issued 13,000 shares of $ 5 par value common stock at $ 16 per share) May 10 Cash 660,000 Capital Stock 660,000 (Issued 11,000 shares of $ 30 par value preferred stock at $ 60 per share) May 15 Capital Stock 14,400 Cash 14,400 (Purchased 900 shares of common stock for the treasury at $ 16 per share) May 31 Cash 13,500 Capital Stock 7,500 Gain on Sale of Stock 6,000 (Sold 750 shares of treasury stock at $…
Pistons Inc. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's capital stock. Date Account Titles and Explanation May 2 Cash Capital Stock (Issued 12,000 shares of $5 par value common stock at $16 per share) May 10 Cash Capital Stock (Issued 10,000 shares of $30 par value preferred stock at $60 per share) May 15 Capital Stock Cash (Purchased 1,000 shares of common stock for the treasury at $15 per share) May 31 Cash Capital Stock Gain on Sale of Stock (Sold 500 shares of treasury stock at $17 per share) Debit Credit 192,000 600,000 15,000 8,500 192,000 600,000 15,000 5,000 3,500 On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions. (List all debit entries before…
Ayayal Corp. recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's capital stock May 2 100 15 Cash Capital Stock Ossued 7,000 shares of $10 par value common stock at $13 per share) Cash Capital Stock Issued 10,000 shares of $20 par value preferred stock at $51 per share) Capital Stock (Purchased 500 shares of common stock for the treasury at $12 per share) 91.000 $10,000 6,000 91,000 510,000 6.000 SUB
Indigo Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation’s capital stock. May 2 Cash 112,500 Capital Stock 112,500 (Issued 7,500 shares of $12 par value common stock at $15 per share) 10 Cash 765,000 Capital Stock 765,000 (Issued 15,000 shares of $16 par value preferred stock at $51 per share) 15 Capital Stock 7,900 Cash 7,900 (Purchased 790 shares of common stock for the treasury at $10 per share) On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions.
Global Air Inc. recently hired a new accountant with limitedreal-world experience in corporate accounting. Prior to starting the new job, the accountant was very busy and was unable to reviewany texts on corporation accounting. During the first month, he made the following entries for the corporation’s capital stock: Oct. 5 Cash 39,000 Capital Stock 1,000 Gain on Sale of Stock 38,000 (Issued 1,000 shares of $1 par value common stock at $39 per share) 12 Cash 330,000 Capital Stock 330,000 (Issued 3,000 shares of $100 par value preferred stock at $110 per share) 13 Capital Stock 20,000 Cash 20,000 (Purchased 500 shares of common stock for the treasury at $40 per share) 26 Cash 22,500 Capital Stock 500 Gain on Sale of Stock…
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?
(e) If dividends of $72,000 were in arrears on preferreu SLUCK, WInutu reported for retained earnings? ETT-5 Mesa Corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review what he had learned earlier about corporation accounting. During the first month, he made the following entries for the corporation's capital stock. Prepare c stock tra (LO 2), AN May 2 Cash 104,000 104,000 Capital Stock (Issued 8,000 shares of $10 par value common stock at $13 per share) noblorb 10 Cash 530,000 Capital Stock (Issued 10,000 shares of $20 par value preferred stock at $53 per share) 530,000 12 15 Capital Stock Cash 7,200 7,200 be (Purchased 600 shares of common stock for the treasury at $12 per share) Instructions On the basis of the explanation for each entry, prepare the entries that should have been made for the capital stock transactions.
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:1. Show the effects of each transaction on the accounting equation.2. Give the indicated journal entries for each of the transactions.3. What impact does the purchase of treasury stock have on dividends paid?4. What impact does the reissuance of treasury stock for an amount higher than the purchaseprice have on net income?
Metlock, Inc. had the following transactions during the current period. Mar. 2 Issued 4,200 shares of $7 par value common stock to attorneys in payment of a bill for $33,800 for services performed in helping the company to incorporate. June 12 Issued 59,200 shares of $7 par value common stock for cash of $492,100. July 11 Issued 2,125 shares of $100 par value preferred stock for cash at $130 per share. Nov. 28 Purchased 1,930 shares of treasury stock for $79,000. Journalize the transactions.
During the year, the following selected transactions affecting stockholders' equity occurred for Navajo Corporation: a. February 1: Repurchased 240 shares of the company's common stock at $22 cash per share. b. July 15: Sold 130 of the shares purchased on February 1 for $23 cash per share. c. September 1: Sold 100 of the shares purchased on February 1 for $21 cash per share. Required: 1. Prepare the journal entry required for each of the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 Repurchased 240 shares of the company's common stock at $22 cash per share. Date February 01 3 Note: Enter debits before credits. Record entry General Journal Clear entry Prev Debit 1 of 8 Credit View general journal ‒‒‒ ‒‒‒ ‒‒‒ Next > *********
During the year the following selected transactions affecting stockholders' equity occurred for Orlando Corporation: a. April 1: Repurchased 240 shares of the company's common stock at $30 cash per share. b. June 14: Sold 60 of the shares purchased on April 1 for $35 cash per share. c. September 1: Sold 50 of the shares purchased on April 1 for $25 cash per share. Required: 1. Prepare journal entries for each of the above transactions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 Repurchased 240 shares of the company's common stock at $30 cash per share. Note: Enter debits before credits. Date April 01 General Journal Debit Credit Record entry Clear entry View general journal