3) JetNew issued 50,000 common shares on January 1, 2020 at $8 each. Preferred shares were issued on March 15, 2020 at $10 each with a dividend rate of $0.50. JetNew sold 20,000 of these shares. On November 15, in order to buy into the business, another shareholder offered up a building valued at $300,000 for 30,000 common shares. At the time of this transaction JetNew shares were trading at $9. Prepare the required journal entries.

3) JetNew issued 50,000 common shares on January 1, 2020 at $8 each. Preferred shares were issued on March 15, 2020 at $10 each with a dividend rate of $0.50. JetNew sold 20,000 of these shares. On November 15, in order to buy into the business, another shareholder offered up a building valued at $300,000 for 30,000 common shares. At the time of this transaction JetNew shares were trading at $9. Prepare the required journal entries.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2021, Kendall Inc. purchased 25,000 shares of Kylie Company at a cost per share of P100. Kylie Company's outstanding ordinary shares are 100,000. Kendall is part of Kylie's board of directors. During the year, Kylie Company paid cash dividends of P700,000 and had a net income of P2,500,000. How much is the Investment in associate on December 31, 2021?
LALALAND Corporation was organized on 1/1/2020. It was authorized to issue 2 million, $1 par, common stock. During the year, the company had the following transactions: January 5- Issued 400,000 common shares for cash, at $ 1.00 each. February 7- issued 250,000 common shares for cash, at $ 1.50 each. April 3- Reacquired 10,000 of its common shares, by paying $ 3,00 per share. June 17- Sold 5,000 of its treasury stock, at a price of $ 4,00 per share. September 20- Sold all the remaining treasury stock it has, at a price of $ 3.2 per share. October 30- Reacquired 20,000 of its common shares, at $ 2.5 per share. Question: If you know that Retained Earnings are $ 60,000, What is the dollar value of Total Stockholders' Equity, at year end?
Jackson Inc. is authorized to issue an unlimited number of common shares and 15,000, $58 stated value preferred shares, with 9% cumulative dividends. On Jan 1, 2020, Jackson Inc. issued 1000 common shares for $40 per share, and 300 preferred shares for $70 per share. a) How much cash did Jackson Inc. raise on the issuance of the common shares? b) How much cash did Jackson Inc. raise on the issuance of the preferred shares? c) Assuming retained earnings is $120,000 at December 31, 2020. What is the total amount of shareholders’ equity to be reflected in the December 31, 2020 statement of financial position of Jackson Inc?
Packard Inc. is a public company. On January 1, 2020 Packard Inc. purchased 10,000 common shares (15%) of Saturn Inc. for $115,000 in cash. Saturn had common shares of $225,000 and retained earnings of $475,000 on this date. Packard considered Saturn a FVTPL investment; as it did not give Packard significant influence. On December 31, 2020 the Saturn shares were trading at $13.00 per share. On January 1, 2021, Packard purchased an additional 25% of Saturn's shares for $217,000 in cash. This second purchase allowed Packard to exert significant influence over Saturn. The following information was available on the date of acquisition: Carrying Value Fair Value Assets not subject to depreciation $205,000 Assets subject to depreciation (10 year useful life) 750,000 Patent (7 year useful life) 35,000 Liabilities 115,000 115,000 Saturn depreciates assets using the straight-line method and has a 35% tax rate. During the two years, Saturn reported the following: Dividends Declared $275,000…
Blue Devil Inc. completed the following transactions of stock issuance, treasury stock and stock dividends during 2019 respectively. Prepare the journal entries for all these transactions. Each transaction is independent from the others. (1) On June 15, Blue Devil issued 20,000 shares of $10 par value common stock for cash of $15 per share. (2) On September 7, Blue Devil sold 5,000 shares of $5 par value preferred stock in exchange for a piece of equipment with a current market value of $75,000. (3) On October 19, Blue Devil repurchased 2,000 shares of the outstanding common stock at the market value of $25 per share (par value of $10).
Blossom Corporation was organized on January 1, 2026 with the authorization of 1330000 shares of common stock with a par value of $6 per share. In 2026, the corporation had the following capital transactions: January 5 issued 665000 shares @ $10 per share July 28 purchased 79000 shares @ $12 per share December 31 sold the 79000 shares held in treasury @ $20 per share Blossom used the cost method to record the purchase and the reissuance of the treasury shares. What is the total amount of additional paid-in capital as of December 31, 2026? $3292000. $-0- $2041000. $2660000.
Doug Graves Cemetery had 69,000 shares of common stock issued and outstanding at January 1, 2021. During 2021, Graves took the following actions: June 1 Declared a 2-for-1 stock split, when the fair value of the stock was $44 per share. October 15 Declared a $0.50 per share cash dividend. In Graves's statement of shareholders' equity for 2021, what amount should Graves report as dividends?
Sunland Company was organized on January 2, 2021, with 508000 authorized shares of $10 par value common stock. During 2021, Sunland had the following capital transactions: January 5-issued 381000 shares at $15 per share. July 27-purchased 25400 shares at $12 per share. November 25-sold 15240 shares of treasury stock at $14 per share. Sunland used the cost method to record the purchase of the treasury shares. What would be the balance in the Paid-in Capital from Treasury Stock account at December 31, 2021? O $45720. $0. O $15240. O $30480.
The Parent Company purchased common stock of Sub Company in a series of open-market purchases in 2021 and 2022. January 1, 2021 purchased 2,000 shares at $12 per share. January 1, 2022 purchased 9,000 downloadshared at $15 per share. Sub Company had 20,000 shares of $10 par value common stock outstanding for the entire period. Dividends of 12000 were paid on December 31, 2022. Sub Company had Net Income of $25,000 in 2021 and $40,000 in 2022. The amount of revaluation loss the Parent Company recognizes in 2022: The net impact on Parent Company books of the Investment in Sub Company account due to the 2022 dividends and net income of Sub Company would be:
Kingbird Corporation has outstanding 21,000 shares of $5 par value common stock. On August 1, 2025, Kingbird reacquired 210 shares at $87 per share. On November 1, Kingbird reissued the 160 shares at $75 per share. Kingbird had no previous treasury stock transactions. Prepare Kingbird's journal entries to record these transactions using the cost method. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record entries in the order displayed in the problem statement.) Account Titles and Explanation Debit Treasury Stock Date 8/1/25 11/1/25 Cash Cash Retained Earnings Treasury Stock 18270 1000 18270 6270 Credit 18271 1200X
On January 2, 2020, Samantha Company bought 10% of Camille Company's outstanding ordinary shares for $400,000. Samantha Company is the largest single shareholder in Camille Company, and Samantha Company's officers are a majority on Camille Company's board of directors. Camille Company reported net income of $500,000 for 2020, and paid dividends of P150,000. In its December 31, 2020 balance sheet, what amount should Samantha Co. report as investment in Camille Co.?
On July 1, 2018 Tam Company purchased 3,000 shares of Del Company capital stock as a temporary investment (trading securities) at $66.50 per share plus a commission of $30. On July 15, a 5 per cent stock dividend was received. Tam received a cash dividend of $0.60 per share on August 12, 2018. On November 1, Tam sold all of the shares for $72.20 per share, less a commission of $30. Prepare entries to record all of these transactions in Tam Company’s accounts.