geNOWv2 |Online teachin XeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=falseCalculatorE Print ItemFortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions:Jan. 31Issued 38,000 shares at $9 share.Jun. 10 Issued 120,000 shares in exchange for land with a clearly determined value of $820,000.Aug. 3Purchased 11,000 shares of treasury stock at $8 per share.A. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank.Jan. 31CashCommon StockAdditional Paid-in Capital from Common StockVபபா. 10Land yCommon StockAdditional Paid-in Capital from Common StockAug. 3Treasury Stock /CashFaedbackTCheck My WorkA. Remember that amounts issued above the par value of the stock would represent extra amounts of capital received by the corporation. Assets purchause the more clearly determinable amount (typically the fair market value of the asset received, if available).Check My Work

Common Stock: Common stock is a security that represents ownership in a corporation. In a liquidation, common stockholders receive whatever assets remain after creditors, bondholders, and preferred stockholders are paid. There are different varieties of stocks traded in the market. For example, value stocks are stocks that are lower in price in relation to their fundamentals. Growth stocks are companies that tend to increase in value due to growing earnings. Additional paid-in capital: Paid-in capital is the full amount of cash or other assets that shareholders have given a company in exchange for stock, par value plus any amount paid in excess. Additional paid-in capital refers to only the amount in excess of a stock's par value. Paid-in capital is reported in the shareholder’s equity section of the balance sheet.Date Account title and explanation Debit Credit Jan 31 Cash (38,000 * $9) $342,000 Common Stock (38,000 * $1) $38,000 Additional paid-in capital from common stock (38,000 * $8) $304,000 June 10 Land $820,000 Common Stock (120,000 * $1) $120,000 Additional paid-in capital from common stock $700,000 Aug. 3 Treasury stock $88,000 Cash $88,000

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A Calculator E Print Item Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions: Jan. 31 Issued 38,000 shares at $9 share. Jun. 10 Issued 120,000 shares in exchange for land with a dearly determined value of $820,000. Aug. 3 Purchased 11,000 shares of treasury stock at $8 per share.

A Calculator E Print Item Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions: Jan. 31 Issued 38,000 shares at $9 share. Jun. 10 Issued 120,000 shares in exchange for land with a dearly determined value of $820,000. Aug. 3 Purchased 11,000 shares of treasury stock at $8 per share.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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