A corporation issued 180 shares of its $5 par value common stock in payment of a $2,600 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

A corporation issued 180 shares of its $5 par value common stock in payment of a $2,600 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

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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Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: a. Collected $900,000 cash and issued 30,000 shares of common stock. b. Issued 20,000 shares of preferred stock at $40 per share; collected in cash. Net income for the year was $60,000; cash dividends declared and paid at year-end were $11,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital:
The charter of a corporation provides for the issuance of 114,000 shares of common stock. Assume that 51,000 shares were originally issued and 6,800 were subsequently reacquired. What is the number of shares outstanding?
Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.0 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2020 Jan. 12 Issued 40,300 common shares at $4.4 each. 20 Issued 6,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $32,000. 31 Issued 76,000 common shares in exchange for land, building, and equipment, which have fair market values of $356,000, $476,000, and $44,000, respectively. Mar. 4 Purchased equipment at a cost of $8,120 cash. This was thought to be a special bargain price. It was felt that at least $10,400 would normally have had to be paid to acquire this equipment. Dec. 31 During 2020, the company incurred a loss of $92,000. The Income Summary account was closed. 2021…
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What Internal Revenue Code section limits an S corporation to 100 shareholders?
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2021. In addition, J&K Paint Shop Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information . Issued 40% of authorized shares of class A common stock. Stock has par value of $45 per share and was issued at $62 per share. Issued at $60, 40% of authorized shares of no-par class B stock. Issued 30% of authorized shares of preferred stock at par value $125. Exchanged 40% of authorized shares of class A common stock for Office…
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At the beginning of year 1, an entity grants 200 shares of each to 500 employees. The grant is conditional upon the employees remaining in the entity's employ until the performance condition described below is satisfied: Performance Condition The shares will vest at the end of: Year 1 - if the entity's earnings increase by 15%. Year 2 - if the entity's earnings increase by more than an average of 11% per year over the two-year period. Year 3 - if the entity's earnings increase by more than an average of 8% per year over the three-year period. The shares have a fair value of P15 at the beginning of year 1, which equals the share price at grant date. The entity does not expect to pay dividends over the three-year period. The following events occurred: Year 1 30 employees have left during year 1 and the entity expects, on the basis of a weighted average probability, that a further 40 will leave during year 2. The entity's earnings have increased by 14% by the end of year 1 and the…
Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The charter issued by the state authorized the following capital stock: Common stock, $1 par value, 200o,000 shares. Preferred stock, $10 par value, 6 percent, 50,000 shares. During January and February, the following stock transactions were completed: led a. Collected $576,000 cash and issued 24,000 shares of common stock. b. Issued 17,000 shares of preferred stock at $34 per share; collected in cash. Net income for the year was $54,000; cash dividends declared and paid at year-end were $11,000. Required: Prepare the stockholders' equity section of the balance sheet at December 31. SHELBY CORPORATION Balance Sheet (Partial) At December 31 Stockholders' Equity Contributed Capital: 24 195,000 O Common Stock 29,000 Preferred Stock Additional Paid-In Capital, Common Stock 812,000 Additional Paid-In Capital, Preferred Stock 565,500 Total Contributed Capital 1,601,500 Retained Earnings…
The charter of a corporation provides for the issuance of 111,000 shares of common stock. Assume that 53,000 shares were originally issued and 10,700 were subsequently reacquired. What is the number of shares outstanding?
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