Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 8, Problem 63PB
1.
To determine
Show the effect of each transaction in the
2.
To determine
Prepare the contributed capital portion of the
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The charter for Zenith, Inc., authorizes the company to issue 250,000 shares of $9, no-par preferred stock and
650,000 shares of common stock with $2 par value. During its start-up phase, Zenith, Inc. completed the following
transactions:
Requirement 2. Prepare the stockholders' equity section of Zenith's balance sheet at December 31, 2018.
Assume the company earned net income of $35,000 during this period. (Enter the accounts in the proper order for
the stockholders' equity section of the balance sheet.)
2018
Issued 400 shares of common stock to the promoters who organized the
Apr 6 corporation,
receiving cash of $13,600.
12 Issued 500 shares of preferred stock for cash of $22,000.
Issued 1,500 shares of common stock in exchange for land with a market
14 value of $24,000.
Stockholders' Equity
Paid-in capital:
Total stockholders' equity
The following transactions occurred for Villegas Company.
1. Villegas Company was formed on July 1, 2022 by issuing 10,000 shares of its $10 par value common stock for $30 per
share. 100,000 shares were authorized by the charter. The company has a fiscal year ending June 30.
2. The company reported a net income of $40,000 during the year ended June 30, 2023. There were no other transactions
affecting stockholders' equity for the year ending June 30, 2023.
3. On July 31, 2023, the company purchased on the open market 1,000 of its own shares at a cost of $28 per share.
Treasury shares are accounted for under the cost method.
4. A cash dividend of 50 cents per common share was declared on Oct. 15, 2023, and paid on Nov. 15, 2023 to
stockholders of record on Nov. 1, 2023.
5. On June 10, 2024, 500 new shares of company common stock were sold at a price of $28 per share.
6. The next day, on June 11, 2024, 600 shares of treasury stock were sold at a price of $29 per share.
7. Net earnings for…
Martinez Corp, is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of
operations, the company had the following events and transactions pertaining to its preferred stock.
Feb. 1
July 1
(a)
Issued 22,800 shares for cash at $51 per share.
Issued 34,200 shares for cash at $56 per share.
Prepare a tabular summary to record the transactions. Include margin explanations for the changes in revenues and expenses. (If a
transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered
for the particular Asset, Liability or Equity item that was reduced.)
Common Stock
Paid-in-Capital:
PIC in Excess of Par Value
Com.
Pref. Stock
PIC in Excess of Par Value
Pref.
Chapter 8 Solutions
Financial Accounting
Ch. 8 - Prob. 1YTCh. 8 - Prob. 2YTCh. 8 - Prob. 3YTCh. 8 - Prob. 4YTCh. 8 - 1. Compare a stock split and a stock dividend. 2....Ch. 8 - Prob. 6YTCh. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4Q
Ch. 8 - Prob. 5QCh. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10QCh. 8 - Prob. 11QCh. 8 - Would treasury stock be considered authorized,...Ch. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - What are the two sections of the shareholders...Ch. 8 - Prob. 17QCh. 8 - Prob. 18QCh. 8 - Prob. 19QCh. 8 - Prob. 1MCQCh. 8 - Prob. 2MCQCh. 8 - Treasury stock is a. a companys own stock that it...Ch. 8 - Prob. 4MCQCh. 8 - Prob. 5MCQCh. 8 - Prob. 6MCQCh. 8 - The number of shares of stock designated as issued...Ch. 8 - Prob. 8MCQCh. 8 - Prob. 9MCQCh. 8 - Prob. 10MCQCh. 8 - Prob. 1SEACh. 8 - Prob. 2SEACh. 8 - Prob. 3SEACh. 8 - Prob. 4SEACh. 8 - Prob. 5SEACh. 8 - Prob. 6SEACh. 8 - Prob. 7SEACh. 8 - Prob. 8SEACh. 8 - Prob. 9SEACh. 8 - Calculate retained earnings balance. (LO 5)....Ch. 8 - Prob. 11SEACh. 8 - Prob. 12SEBCh. 8 - Prob. 13SEBCh. 8 - Prob. 14SEBCh. 8 - Prob. 15SEBCh. 8 - Prob. 16SEBCh. 8 - Prob. 17SEBCh. 8 - Prob. 18SEBCh. 8 - Prob. 19SEBCh. 8 - Prob. 20SEBCh. 8 - Prob. 21SEBCh. 8 - Prob. 22SEBCh. 8 - Prob. 23EACh. 8 - Prob. 24EACh. 8 - Prob. 25EACh. 8 - Prob. 26EACh. 8 - Prob. 27EACh. 8 - Prob. 28EACh. 8 - Prob. 29EACh. 8 - Prob. 30EACh. 8 - Prob. 31EACh. 8 - Analyze equity accounts. (LO 1, 2, 3, 5). The...Ch. 8 - Prob. 33EACh. 8 - Prob. 34EACh. 8 - Prob. 35EACh. 8 - Prob. 36EACh. 8 - Prob. 37EACh. 8 - Prob. 38EACh. 8 - Prob. 39EBCh. 8 - Prob. 40EBCh. 8 - Prob. 41EBCh. 8 - Prob. 42EBCh. 8 - Prob. 43EBCh. 8 - Prob. 44EBCh. 8 - Prob. 45EBCh. 8 - Prob. 46EBCh. 8 - Prob. 47EBCh. 8 - Prob. 48EBCh. 8 - Prob. 49EBCh. 8 - Prob. 50EBCh. 8 - Prob. 51EBCh. 8 - Prob. 52EBCh. 8 - Prob. 53EBCh. 8 - Prob. 54EBCh. 8 - Prob. 55PACh. 8 - Prob. 56PACh. 8 - Prob. 57PACh. 8 - Prob. 58PACh. 8 - Prob. 59PACh. 8 - Prob. 60PACh. 8 - Prob. 61PACh. 8 - Prob. 62PACh. 8 - Prob. 63PBCh. 8 - Prob. 64PBCh. 8 - Prob. 65PBCh. 8 - Prob. 66PBCh. 8 - Prob. 67PBCh. 8 - Prob. 68PBCh. 8 - Prob. 69PBCh. 8 - Prob. 70PBCh. 8 - Prob. 1FSACh. 8 - Prob. 2FSACh. 8 - Prob. 3FSACh. 8 - Prob. 1CTPCh. 8 - Prob. 2CTPCh. 8 - Prob. 1IECh. 8 - Prob. 2IECh. 8 - Prob. 3IECh. 8 - Prob. 4IECh. 8 - Prob. 5IE
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