Accounting Sigma Corporation is authorized to issue 10,000,000 shares of $5 par value capital stock. The corporation issued half the stock for cash at $8 per share, earned $471,000 during the first three months of operation, and declared a cash dividend of $60,000. The total paid-in capital of Zigma Corporation after three months of operation is:

Accounting Sigma Corporation is authorized to issue 10,000,000 shares of $5 par value capital stock. The corporation issued half the stock for cash at $8 per share, earned $471,000 during the first three months of operation, and declared a cash dividend of $60,000. The total paid-in capital of Zigma Corporation after three months of operation is:

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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Required information [The following information applies to the questions displayed below.] Incentive Corporation was authorized to issue 12,000 shares of common stock, each with a $1 par value. During its first year, the following selected transactions were completed: a. Issued 5,400 shares of common stock for cash at $24 per share. b. Issued 1,400 shares of common stock for cash at $27 per share. Required: 1. Complete the table below, indicating the account, amount, and direction of the effect for the above transactions. (Enter any decreases to account balances with a minus sign.) Assets Liabilities Stockholders' Equity
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BFAR Corporation has the following transactions during the year: • Authorized Ordinary share capital of 500,000 shares at P4 par value. Issued 20,000 ordinary shares at P6.00 per share. • Issued 10,000 in exchange of printing equipment at P100,000. • Issued 20,000 in exchange of 50 hours legal services. The fair value of legal services is 2,500 per hour. Compute the Ordinary Share capital.
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Question: Worldwide Company obtained a charter from the state in January that authorized 200,000 shares of common stock, $10 par value. During the first year, the company earned $38,400 and the following selected transactions occurred in the order given: a. Issued 62,000 shares of the common stock at $13 cash per share. b. Reacquired 2,200 shares at $16 cash per share from stockholders; the shares are now held in treasury. C. Reissued 1,100 of the shares in transaction (b) two months later at $19 cash per share. Required: 1. Indicating the account, amount, and direction of the effect on above transaction. a. Assets Liabilities Stockholders' Equity b. C. 2. Prepare journal entries to record each transaction. 3. Prepare the stockholders' equity section of the balance sheet at December 31. (TIP: Because this is the first year of operations, Retained Earnings has a zero balance at the beginning of the year)
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