*Problem 13-1A. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.

Size: px

Start display at page:

Download "*Problem 13-1A. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually."

Ferdinand Jessie Boone
7 years ago
Views:

1 *Problem 13-1A DeLong Corporation was organized on January 1, It is authorized to issue 14,800 shares of 8%, 100 par value preferred stock, and 497,600 shares of no-par common stock with a stated value of 2 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 75,400 shares of common stock for cash at 4 per share. Mar. 1 Issued 5,600 shares of preferred stock for cash at 109 per share. Apr. 1 Issued 23,400 shares of common stock for land. The asking price of the land was 90,800. The fair value of the land was 90,000. May 1 Issued 79,400 shares of common stock for cash at 4.70 per share. Aug. 1 Issued 10,400 shares of common stock to attorneys in payment of their bill of 43,900 for services performed in helping the company organize. Sept. 1 Issued 11,900 shares of common stock for cash at 5 per share. Nov. 1 Issued 2,580 shares of preferred stock for cash at 110 per share. Journalize the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 10 Mar. 1 Apr. 1 May 1 Aug. 1 Sept. 1

2 Nov. 1 Post to the stockholders equity accounts. (Post entries in the order of journal entries presented in the previous part.) Preferred Stock Common Stock Paid-in Capital in Excess of Par-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock Prepare the paid-in capital section of stockholders equity at December 31, (Enter the account name only and do not provide the descriptive information provided in the question.) DELONG CORPORATION Sheet (Partial) December 31, 2014

4 *Problem 13-6A Irwin Corporation has been authorized to issue 20,800 shares of 100 par value, 10%, noncumulative preferred stock and 981,000 shares of no-par common stock. The corporation assigned a 2.50 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders equity. Preferred Stock 119,000 Paid-in Capital in Excess of Par Preferred Stock 23,900 Common Stock 981,000 Paid-in Capital in Excess of Stated Value Common Stock 1,781,300 Treasury Stock (1,000 common shares) 14,000 Paid-in Capital from Treasury Stock 500 Retained Earnings 81,600 The preferred stock was issued for land having a fair value of 142,900. All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of 14. In December, 500 shares of treasury stock were sold for 15 per share. No dividends were declared in Prepare the journal entries for the: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) Issuance of preferred stock for land. (2) Issuance of common stock for cash. (3) Purchase of common treasury stock for cash. (4) Sale of treasury stock for cash. No. Account Titles and Explanation Debit Credit Prepare the stockholders equity section at December 31, (Enter the account name only and do not provide the descriptive information provided in the question.) IRWIN CORPORATION Sheet (Partial) December 31, 2014

6 *Problem 13-3A The stockholders equity accounts of Castle Corporation on January 1, 2014, were as follows. Preferred Stock (8%, 49 par, cumulative, 10,400 shares authorized) 416,500 Common Stock (1 stated value, 1,935,100 shares authorized) 1,447,400 Paid-in Capital in Excess of Par Preferred Stock 145,400 Paid-in Capital in Excess of Stated Value Common Stock 1,449,800 Retained Earnings 1,784,500 Treasury Stock (10,200 common shares) 51,000 During 2014, the corporation had the following transactions and events pertaining to its stockholders equity. Feb. 1 Issued 25,500 shares of common stock for 123,800. Apr. 14 Sold 5,900 shares of treasury stock common for 32,900. Sept. 3 Issued 5,000 shares of common stock for a patent valued at 35,600. Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of 6,000. Dec. 31 Determined that net income for the year was 482,500. No dividends were declared during the year. Journalize the transactions and the closing entry for net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Feb. 1 Apr. 14 Sept. 3 Nov. 10 Dec. 31 Enter the beginning balances in the accounts, and post the journal entries to the stockholders equity accounts. (Use for the posting reference.) (Post entries in the order of journal entries presented in the previous part.) Preferred Stock

7 Common Stock Paid-in Capital in Excess of Par Preferred Stock Paid-in Capital in Excess of Stated Value Common Stock Paid-in Capital from Treasury Stock Retained Earnings Treasury Stock Prepare a stockholders equity section at December 31, 2014, including the disclosure of the preferred dividends in arrears. (Enter the account name only and do not provide the descriptive information provided in the question.) CASTLE CORPORATION Sheet (Partial) December 31, 2014

9 *Problem 13-2A Fechter Corporation had the following stockholders equity accounts on January 1, 2014: Common Stock (5 par) 528,650, Paid-in Capital in Excess of Par Common Stock 216,590, and Retained Earnings 117,330. In 2014, the company had the following treasury stock transactions. Mar. 1 June 1 Sept.1 Dec. 1 Purchased 6,560 shares at 9 per share. Sold 1,140 shares at 13 per share. Sold 1,330 shares at 10 per share. Sold 1,430 shares at 6 per share. Fechter Corporation uses the cost method of accounting for treasury stock. In 2014, the company reported net income of 28,690. Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2014, for net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 1 June 1 Sept. 1 Dec. 1 Dec. 31 Open accounts for Paid-in Capital from Treasury Stock, Treasury Stock, and Retained Earnings. Post to these accounts using as the posting reference. (Post entries in the order of journal entries presented in the previous part.) Paid-in Capital from Treasury Stock

10 Treasury Stock Retained Earnings Prepare the stockholders equity section for Fechter Corporation at December 31, (Enter the account name only and do not provide the descriptive information provided in the question.) FECHTER CORPORATION Sheet (Partial) December 31, 2014 : Question Attempts: 0 of 5 used Copyright by John Wiley & Sons, Inc. or related companies. All rights reserved.

Authorization and Issuance. Of capital stock

Authorization and Issuance. Of capital stock Authorization and Issuance Of capital stock Authorized Shares The maximum number of shares Of capital stock that can be sold to the public Authorized Shares Issued Shares are authorized shares of stock