Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134833156
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 10.25AE
To determine
The total paid in capital of E publishing Company.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 26,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31.
Jul.
1
Sell $13,000 of common stock to Suzie.
Jul.
1
Sell $13,000 of common stock to Tony.
Jul.
1
Purchase a one-year insurance policy for $5,640 ($470 per month) to cover injuries to participants during outdoor clinics.
Jul.
2
Pay legal fees of $1,900 associated with incorporation.
Jul.
4
Purchase office supplies of $1,800 on account.
Jul.
7
Pay for advertising of $350 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic.
Jul.
8
Purchase 10 mountain bikes, paying $10,100 cash.…
(Learning Objectives 2, 6: Account for stock issuance; report stockholders’equity) The partners who own Crew Kayaks Co. wished to avoid the unlimited personalliability of the partnership form of business, so they incorporated as Crew Kayaks, Inc. Thecharter from the state of Nevada authorizes the corporation to issue 125,000 shares of $15 parcommon stock. In its first month, Crew Kayaks, Inc., completed the following transactions:Oct 6 Issued 600 shares of common stock to the promoter forassistance with issuance of common stock. The promotionalfee was $12,000. Debit Organization Expense.9 Issued 10,000 shares of common stock to Lucy Littleton and18,000 shares to Danielle Dunaway in return for cash equal to thestock’s market value of $18 per share. The two women werepartners in Crew Kayaks Co.26 Issued 900 shares of common stock for $21 cash per share.Requirements1. Record the transactions in the journal.2. Prepare the stockholders’ equity section of the Crew Kayaks, Inc., balance sheet…
On-Line Learning Corporation obtained a charter at the beginning of this year that authorized 63,000 shares of no-par common stock and 30,000 shares of preferred stock, $19 par value. The corporation was organized by four individuals who purchased a total of 36,000 shares of the common stock. The remaining shares were to be sold to other individuals. During the year, the following selected transactions occurred:
a. Collected $38 cash per share from the four organizers and issued 9,000 shares of common stock to each of them.
b. Sold 10,000 shares of common stock to an outsider at $76 cash per share.
c. Sold 11,000 shares of preferred stock at $57 cash per share.
Required:
1. Prepare the journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
I'm unsure why this answer is wrong.
Chapter 10 Solutions
Financial Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
Ch. 10 - The two main categories of stockholders equity are...Ch. 10 - Prob. 2QCCh. 10 - Stockholders of a corporation directly elect the...Ch. 10 - The par value of a share of common stock a. is...Ch. 10 - Prob. 5QCCh. 10 - If a corporation issues 1,000 shares of 1 par...Ch. 10 - Prob. 7QCCh. 10 - Sandusky Corporation purchased 3,000 shares of its...Ch. 10 - Graves Corporation issued 50,000 shares of 1 par...Ch. 10 - Prob. 10QC
Ch. 10 - For cash dividends, the journal entry on the date...Ch. 10 - Prob. 12QCCh. 10 - Prob. 13QCCh. 10 - Prob. 14QCCh. 10 - Prob. 15QCCh. 10 - Prob. 16QCCh. 10 - Prob. 10.1ECCh. 10 - Prob. 10.1SCh. 10 - (Learning Objective 1: Describe characteristics of...Ch. 10 - Prob. 10.3SCh. 10 - Prob. 10.4SCh. 10 - (Learning Objective 2: Record issuance of stock...Ch. 10 - Prob. 10.6SCh. 10 - Prob. 10.7SCh. 10 - Prob. 10.8SCh. 10 - Prob. 10.9SCh. 10 - Prob. 10.10SCh. 10 - (Learning Objective 4: Divide cash dividends...Ch. 10 - Prob. 10.12SCh. 10 - (Learning Objective 6: Prepare the stockholders...Ch. 10 - (Learning Objective 5: Use stockholders equity...Ch. 10 - (Learning Objective 5: Calculate book value per...Ch. 10 - (Learning Objective 5: Calculate and explain...Ch. 10 - (Learning Objective 5: Calculate return on assets...Ch. 10 - Prob. 10.18SCh. 10 - (Learning Objective 2. 5: Define and use various...Ch. 10 - Prob. 10.20SCh. 10 - Prob. 10.21SCh. 10 - Prob. 10.22SCh. 10 - (Learning Objective 1: Identify key terms...Ch. 10 - (Learning Objectives 2, 6: Account for issuance of...Ch. 10 - Prob. 10.25AECh. 10 - Prob. 10.26AECh. 10 - Prob. 10.27AECh. 10 - (Learning Objective 3: Account for the purchase...Ch. 10 - (Learning Objectives 2, 3, 4: Account for issuance...Ch. 10 - (Learning Objective 6: Report stockholders equity...Ch. 10 - Prob. 10.31AECh. 10 - LO 4 (Learning Objective 4: Calculate dividends on...Ch. 10 - Prob. 10.33AECh. 10 - Prob. 10.34AECh. 10 - LO 5 (Learning Objective 5: Calculate and...Ch. 10 - LO 4,6 (Learning Objective 4, 6: Analyze...Ch. 10 - (Learning Objective 5: Evaluate profitability)...Ch. 10 - Prob. 10.38AECh. 10 - LO 6 (Learning Objective 6: Use a companys...Ch. 10 - (Learning Objective 1: Identify key terms...Ch. 10 - (Learning Objectives 2, 6: Account for issuance of...Ch. 10 - Prob. 10.42BECh. 10 - Prob. 10.43BECh. 10 - (Learning Objectives 3, 6: Show how treasury stock...Ch. 10 - (Learning Objective 3: Account for the purchase...Ch. 10 - (Learning Objectives 2, 3, 4: Account for issuance...Ch. 10 - Prob. 10.47BECh. 10 - Prob. 10.48BECh. 10 - Prob. 10.49BECh. 10 - Prob. 10.50BECh. 10 - (Learning Objectives 2, 3, 4: Measure the effect s...Ch. 10 - Prob. 10.52BECh. 10 - (Learning Objective 5: Analyze alternative plans...Ch. 10 - (Learning Objective 5: Evaluate profitability)...Ch. 10 - Prob. 10.55BECh. 10 - Prob. 10.56BECh. 10 - Prob. 10.57QCh. 10 - Prob. 10.58QCh. 10 - Prob. 10.59QCh. 10 - Prob. 10.60QCh. 10 - Prob. 10.61QCh. 10 - Prob. 10.62QCh. 10 - Prob. 10.63QCh. 10 - Prob. 10.64QCh. 10 - Quill Corporation paid 28 per share to purchase...Ch. 10 - Prob. 10.66QCh. 10 - Prob. 10.67QCh. 10 - Prob. 10.68QCh. 10 - Prob. 10.69QCh. 10 - Prob. 10.70QCh. 10 - Prob. 10.71QCh. 10 - Prob. 10.72QCh. 10 - Prob. 10.73QCh. 10 - Prob. 10.74QCh. 10 - Prob. 10.75QCh. 10 - Prob. 10.76APCh. 10 - (Learning Objective 6: Report stockholders equity)...Ch. 10 - (Learning Objectives 2, 4: Analyze stockholders...Ch. 10 - (Learning Objectives 2, 3, 4: Account for stock...Ch. 10 - Prob. 10.80APCh. 10 - Prob. 10.81APCh. 10 - Prob. 10.82APCh. 10 - Prob. 10.83APCh. 10 - Prob. 10.84BPCh. 10 - Prob. 10.85BPCh. 10 - (Learning Objectives 2, 4: Analyze stockholders...Ch. 10 - (Learning Objectives 2, 3, 4: Account for stock...Ch. 10 - Prob. 10.88BPCh. 10 - Prob. 10.89BPCh. 10 - (Learning Objective 5: Differentiate financing...Ch. 10 - Prob. 10.91BPCh. 10 - Prob. 10.92CEPCh. 10 - Prob. 10.93CEPCh. 10 - Prob. 10.94CEPCh. 10 - Prob. 10.95CEPCh. 10 - (Learning Objectives 2, 3, 4, 6: Analyze...Ch. 10 - (Learning Objectives 2, 3, 4: Calculate impact of...Ch. 10 - Prob. 10.98DCCh. 10 - Prob. 10.99DCCh. 10 - Prob. 10.100EICCh. 10 - Prob. 10.101EICCh. 10 - (Learning Objectives 2, 3, 4, 5: Analyze common...Ch. 10 - (Learning Objectives 2, 3, 4: Analyze treasury...
Knowledge Booster
Similar questions
- On-Line Learning Corporation obtained a charter at the beginning of this year that authorized 63,000 shares of no-par common stock and 30,000 shares of preferred stock, $19 par value. The corporation was organized by four individuals who purchased a total of 36,000 shares of the common stock. The remaining shares were to be sold to other individuals. During the year, the following selected transactions occurred: a. Collected $38 cash per share from the four organizers and issued 9,000 shares of common stock to each of them. b. Sold 10,000 shares of common stock to an outsider at $76 cash per share. c. Sold 11,000 shares of preferred stock at $57 cash per share. Required: 1. Prepare the journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) The system said my answer is incomplete, I don't knoy why..arrow_forward(Learning Objectives 2, 6: Account for stock issuance; report stockholders’equity) The partners who own Jefferson Rafts Co. wished to avoid the unlimited personalliability of the partnership form of business, so they incorporated as Jefferson Rafts, Inc. Thecharter from the state of Vermont authorizes the corporation to issue 200,000 shares of $15 parcommon stock. In its first month, Jefferson Rafts, Inc., completed the following transactions:Jan 6 Issued 900 shares of common stock to the promoter forassistance with issuance of the common stock. The promotionalfee was $27,000. Debit Organization Expense.9 Issued 4,000 shares of common stock to Lindsey Crow and 14,000shares to Jackie Jefferson in return for cash equal to the stock’s marketvalue of $20 per share. The two women were partners in Jefferson Rafts Co.26 Issued 1,600 shares of common stock for $25 cash per share.Requirements1. Record the transactions in the journal.2. Prepare the stockholders’ equity section of the Jefferson…arrow_forwardA shareholder transfers $100,000 to a newly created corporation. At the end of the first year of successful operations, the corporation distributes $30,000 payment to the shareholder. If the transfer by the shareholder is all equity (ie. Stock), the affect of the $30,000 payment (Dividend Payment) to the shareholder results in a deduction to the corporation of: $ -0-. $ 30,000. $100,000. $ 70,000.arrow_forward
- On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 37,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $18,500 of common stock to Suzie. Jul. 1 Sell $18,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,920 ($410 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation. Jul. 4 Purchase office supplies of $1,700 on account. Jul. 7 Pay for advertising of $280 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $19,500 cash.…arrow_forwardMadraza Corporation was incorporated on July 1, 20A with authorized ordinary share capita of P1,000,000 and preference share of P2,000,000 with par value of P100 each. During the year, the corporation had the following transactions affecting the Shareholders' Equity: 1st: 120 ordinary shares were issued for cash at par value. 2nd: 380 ordinary shares were issued in exchange for land. The fair market value of land is P50,000. 3rd: 200 ordinary shares were issued in payment of legal expenses incurred during the incorporation process, P25,000. Q-8 How much is the balance of Ordinary Share Capital account? a) P60,000 b) P70,000 c) PS0,000 d) none of these Q-9 What amount of Share Premium should be reported in the Statement of Financial Position? a) P17,000 b) P19,000 c) d) P21,000 none of thesearrow_forwardJennifer Smith decides to start a new company that will be operated as a corporation, Comfy Shoes Incorporated (CSI), The company will sell comfortable shoes, boots, and sandals for men, women, and children. The articles of incorporation for CSt authorize the company to issue 200,000 cumulative preferred shares that pay a dividend of $0.50 per year and 1,500,000 common shares, During 2021, CSI completed these transactions and events: Jan. 1 Issued 75,000 common shares for a total of $225,000. Issued 10,000 cumulative preferred shares in exchange for a building with a market value of $100,000. Jan. 10 Dec. 31 Net income for the year was $100,000 (assume revenue closed to Income Summary). No dividends were declared. nd expenses have been During 2022, CSI completed these transactions and events: Net Income for the year was $1,000,000 (assume revenue and expenses have been closed to Income Summary). Dec. 31 Dec. 31 Declared cash dividends of $125,000. On January 15, 2023, CSI paid the cash…arrow_forward
- Jasper Junction Corporation (JJC) is an accrual basis, calendar-year entity that was created by Chao, Iris, and Nolan in 20X1. JJC furnishes the original incorporation agreement. The shareholders' bases in the assets contributed are as follows: • Cash $150,000 • Equipment $245,000 • Inventory $380,000 • Land and Building $375,000 The first five years of business have been lean years. Nolan had to loan the corporation $75,000 to ensure that JJC had enough cash to pay its bills and its Accumulated Earnings and Profits only amounts to $23,000 at the end of 20X5. JJC has its first year of substantial income in 20X6. It also sells some of its land for $100,000 cash, but the sale results in a capital loss. The Board of Directors decides to pay $250,000 in dividends to its shareholders. This is in addition to the $3,500 of interest it pays on the bonds and the $1,500 it pays to Nolan on the money he loaned JJC. The income and expenses of JJC for 20X6, taxable income, and current E&P are…arrow_forwardAtty Janice Alcantara has done a lot in the formming of Mondragon Corporation. The Articles of Incorporation that the corporation has an authorized ordinary share capital or P10,000,000 with an equivalent share of 50,000 ndragon Corporation is to issue 250 shares at par value for the service of the lawyer. Record the following transactions assuming: 1. The services of Atty. Alcantara is valued at P60,000. Description P.R. Debit Credit 2. No known value of the services instead the fair value of ordinary share is given at P250 per share. Description P.R. Debit Credit 3. There is no known value for both services rendered and the ordinary share capital issued. Description P.R. Debit Creditarrow_forwardOn December 30, 2018, Ethnic Museum, a not-for-profit organization, received a P3,000,000 donation of AB Co. shares with donor stipulated requirement as follows: Shares valued at P1,800,000 are to be sold, with the proceeds used to build a viewing building in 2018. Shares valued at P1,200,000 are to be retained with the dividends used to support current operations: As a consequence of the receipt of the AB shares, how much should Ethnic Museum reports as temporarily restricted net assets on its 2018 statement of financial position?arrow_forward
- Prepare a General Journal, a General Ledger and an unadjusted trial balance for the following: The articles of incorporation for Bella Computers specified that the corporation was authorized to issue 1 million shares of common stock; par value was set at $10 per share. During the meeting, stock certificates for 5,000 shares of $10.00 par stock were issued to Dale and Lee, each. Dale and Lee each wrote personal checks for $50,000 for deposit in the new business bank account. As officers of the new Bella Computers Company, Dale and Lee, were both required to sign all company expense checks. As soon as the meeting ended Dale and Lee drove to the warehouse facilities that they had arranged to lease for one year. The lease would be a 1-year prepaid lease for the sum of $1,000 per month. The company wrote a check that day to the real estate company for the entire sum for the first year’s lease. Also on June 1, Bella Computers paid deposits to the Electric Company for initial service hook-up.…arrow_forwardA corporation issued 300 shares of its $5 par value common stock in payment of a $1,800 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include: A $1,800 credit to Common Stock. A $1,500 debit to Organization Expenses. A $300 credit to Contributed Capital in Excess of Par Value, Common Stock. A $1,800 debit to Legal Expenses. A $1,800 credit to Cash.arrow_forwardThe Business charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: VIK purchased a piece of land from the original owner. In payment for the land, VIK issue 350,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of 1, 350,000 The company sold 110,000 shares of common stock with $1 par value Issued 22,000 shares of $18 par value preferred stock. Shares were issued at par. Earned net income of $850,000 Dividend declared and paid - $0.15 per share on common stock Dividend declared and paid - $5 per share on preferred stock Prepare the Journal entries closing entries for the above transactionarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you