Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Question
Chapter 15, Problem 15.7BE
To determine
To prepare: The
Given information:
1,000 shares are issued.
Par value is $1.
Issue price is $45 per share.
Bill of other similar transaction is $34,500.
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On May 1, Splish Brothers Corporation purchased 2,700 shares of its $10 par value common stock at a cash price of $13/share. On
July 15, 750 shares of the treasury stock were sold for cash at $17/share.
Journalize the two transactions. (List all debit entries before credit entries. 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.)
No.
Account Titles and Explanation
Debit
Credit
You are engaged to perform the first audit of the Torrents Company for the year ended December 31, 2022. You find the following account balances related to shareholders' equity:
Preference shares, P100 par
P3,000,000
Ordinary Shares, P10 par
6,500,000
Capital Surplus
(1,640,000)
Retained Earnings
15,000,000
Due to the antiquated terminology and negative balance, you examine the Capitak Surplus account first and find in it the following entries:
Credit/(Debit)
Premium on Ordinary Shares
P2,710,000
Capital from donated land
1,600,000
Treasury shares (50,000 ordinary shares at cost)
(750,000)
Premium on Preference Shares
300,000
Appropriation for contingencies
2,500,000
Share dividend issued (50%)
(2,000,000)
Prior period adjustment (net of income taxes)
(1,200,000)
Loss from the fire (uninsured), 2022
(1,800,000)
Property dividend distributed
(600,000)
Cash dividends declared to be paid in 2023
(2,400,000)
Balance
(P1,640,000)
Your examination of…
You are engaged to perform the first audit of the Torrents Company for the year ended December 31, 2022. You find the following account balances related to shareholders' equity:
Preference shares, P100 par
P3,000,000
Ordinary Shares, P10 par
6,500,000
Capital Surplus
(1,640,000)
Retained Earnings
15,000,000
Due to the antiquated terminology and negative balance, you examine the Capitak Surplus account first and find in it the following entries:
Credit/(Debit)
Premium on Ordinary Shares
P2,710,000
Capital from donated land
1,600,000
Treasury shares (50,000 ordinary shares at cost)
(750,000)
Premium on Preference Shares
300,000
Appropriation for contingencies
2,500,000
Share dividend issued (50%)
(2,000,000)
Prior period adjustment (net of income taxes)
(1,200,000)
Loss from the fire (uninsured), 2022
(1,800,000)
Property dividend distributed
(600,000)
Cash dividends declared to be paid in 2023
(2,400,000)
Balance
(P1,640,000)
Your examination of…
Chapter 15 Solutions
Intermediate Accounting
Ch. 15 - Prob. 15.1QCh. 15 - What are the retained earnings of a firm?Ch. 15 - Prob. 15.3QCh. 15 - Prob. 15.4QCh. 15 - Does an entity have to legally dissolve treasury...Ch. 15 - Prob. 15.6QCh. 15 - Prob. 15.7QCh. 15 - Prob. 15.8QCh. 15 - Prob. 15.9QCh. 15 - Prob. 15.10Q
Ch. 15 - Prob. 15.11QCh. 15 - Do firms often use stock dividends to avoid...Ch. 15 - Prob. 15.13QCh. 15 - What is included in other comprehensive income?Ch. 15 - Is a specific format required for reporting...Ch. 15 - Prob. 15.16QCh. 15 - Boone Corporations outstanding capital stock on...Ch. 15 - Prob. 15.2MCCh. 15 - Prob. 15.3MCCh. 15 - Prob. 15.4MCCh. 15 - Prob. 15.5MCCh. 15 - Prob. 15.6MCCh. 15 - Prob. 15.7MCCh. 15 - Prob. 15.1BECh. 15 - Stockholders Equity Terminology, U.S. GAAP, IFRS....Ch. 15 - Common Stock Issuance, No Par Value. Perdido...Ch. 15 - Prob. 15.4BECh. 15 - Prob. 15.5BECh. 15 - Prob. 15.6BECh. 15 - Prob. 15.7BECh. 15 - Prob. 15.8BECh. 15 - Treasury Stock Transactions. Ginger Spice...Ch. 15 - Treasury Stock Transactions. On March 15, Chief...Ch. 15 - Treasury Stock Transactions, Retirement. Using the...Ch. 15 - Prob. 15.12BECh. 15 - Prob. 15.13BECh. 15 - Prob. 15.14BECh. 15 - Common Stock Issuance, Stated Value, Issue Costs....Ch. 15 - Common Stock Issuance. Par Value, Issue Costs,...Ch. 15 - Prob. 15.3ECh. 15 - Prob. 15.4ECh. 15 - Treasury Stock Transactions, Retirement,...Ch. 15 - Prob. 15.6ECh. 15 - Treasury Stock Transactions. Several years ago,...Ch. 15 - Prob. 15.8ECh. 15 - Prob. 15.9ECh. 15 - Prob. 15.10ECh. 15 - Prob. 15.11ECh. 15 - Preferred Stock Issuance Dividends, Disclosure....Ch. 15 - Prob. 15.13ECh. 15 - Prob. 15.14ECh. 15 - Prob. 15.15ECh. 15 - Prob. 15.16ECh. 15 - Prob. 15.17ECh. 15 - Prob. 15.18ECh. 15 - Prob. 15.19ECh. 15 - Prob. 15.20ECh. 15 - Prob. 15.21ECh. 15 - Prob. 15.1PCh. 15 - Prob. 15.2PCh. 15 - Prob. 15.3PCh. 15 - Prob. 15.4PCh. 15 - Prob. 15.5PCh. 15 - Prob. 15.6PCh. 15 - Prob. 15.7PCh. 15 - Prob. 15.8PCh. 15 - Prob. 15.9PCh. 15 - Prob. 1JCCh. 15 - Judgment Case 2: Impact of Judgment in Accounting...Ch. 15 - Prob. 1SSCCh. 15 - Prob. 1BCCCh. 15 - Prob. 2BCC
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