Assume one year later (2019) the company KY Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. 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 which is grouped according to your fist name initial. (Hint!!!! Example fist name Michael will use the initial M and that person should only use the info presented in line with the heading with their first name initial. You are not allowed to use info associated other initials other than that of your own as this will result in the forfeiture of the grade.) The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues ___ (please refer to table below and use only the info in line with your fist name initial) shares of common stock with $1.00 par value. The land has been appraised at a market value of ____ (Please refer to table below for land value under the category with your first name initial). First Name Initial # of shares issued Value of land A, P, I, E, V 300,000 $1,200,000 C, O, R, Y 350,000 $1,350,000 K, Q, M, F 380,000 $1,500,000 S, W, G, Z 400,000 $1,480,000 D, T, L, U 410,000 $1,560,000 N, B, J, X, H 390,000 $1,520,000 The company sold ___ (please refer to table below and use only the info in line with your fist name initial) shares of common stock with $1 par value. First Name Initial # of shares issued A, P, I, E, V 120,000 C, O, R, Y 110,000 K, Q, M, F 150,000 S, W, G, Z 110,000 D, T, L, U 155,000 N, B, J, X, H 140,000 Issued ___ (please refer to table below and use only the info in line with your fist name initial) shares of $___ (please refer to table below and use only the info in line with your fist name initial) par value preferred stock. Shares were issued at par. First Name Initial # of shares issued Par value A, P, I, E, V 25,500 $20 C, O, R, Y 22,000 $18 K, Q, M, F 23,000 $16 S, W, G, Z 24,000 $14 D, T, L, U 25,000 $19 N, B, J, X, H 26,000 $22 Earned net income of $___ (please refer to table below and use only the info in line with your fist name initial). First Name Initial Net Income A, P, I, E, V $764,000 C, O, R, Y $850,000 K, Q, M, F $940,000 S, W, G, Z $1,000,000 D, T, L, U $880,000 N, B, J, X, H $950,000 Dividend declared and paid - $0.15 per share on common stock Dividend declared and paid - $5 per share on preferred stock Prepare the Journal entries and closing entries for the above transaction Prepare the owner’s equity section of the balance sheet based on the info above. Can I get some assistance with these questions? Please use the column with the initial K to calculate. heck_circle Expert Answer thumb_up thumb_down Step 1 When asset are purchased against common stock, the common stock is credited for only par value. The difference if any between the fair value of asset and the par value of stock is adjusted against stock premium or stock discount. Step 2 I would like to get a breakdown of how the calculation was done in parts 3 and 4 in the journal entries.

Assume one year later (2019) the company KY Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. 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 which is grouped according to your fist name initial. (Hint!!!! Example fist name Michael will use the initial M and that person should only use the info presented in line with the heading with their first name initial. You are not allowed to use info associated other initials other than that of your own as this will result in the forfeiture of the grade.) The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration: KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues _ (please refer to table below and use only the info in line with your fist name initial) shares of common stock with $1.00 par value. The land has been appraised at a market value of (Please refer to table below for land value under the category with your first name initial). First Name Initial # of shares issued Value of land A, P, I, E, V 300,000 $1,200,000 C, O, R, Y 350,000 $1,350,000 K, Q, M, F 380,000 $1,500,000 S, W, G, Z 400,000 $1,480,000 D, T, L, U 410,000 $1,560,000 N, B, J, X, H 390,000 $1,520,000 The company sold _ (please refer to table below and use only the info in line with your fist name initial) shares of common stock with $1 par value. First Name Initial # of shares issued A, P, I, E, V 120,000 C, O, R, Y 110,000 K, Q, M, F 150,000 S, W, G, Z 110,000 D, T, L, U 155,000 N, B, J, X, H 140,000 Issued _ (please refer to table below and use only the info in line with your fist name initial) shares of $_ (please refer to table below and use only the info in line with your fist name initial) par value preferred stock. Shares were issued at par. First Name Initial # of shares issued Par value A, P, I, E, V 25,500 $20 C, O, R, Y 22,000 $18 K, Q, M, F 23,000 $16 S, W, G, Z 24,000 $14 D, T, L, U 25,000 $19 N, B, J, X, H 26,000 $22 Earned net income of $___ (please refer to table below and use only the info in line with your fist name initial). First Name Initial Net Income A, P, I, E, V $764,000 C, O, R, Y $850,000 K, Q, M, F $940,000 S, W, G, Z $1,000,000 D, T, L, U $880,000 N, B, J, X, H $950,000 Dividend declared and paid - $0.15 per share on common stock Dividend declared and paid - $5 per share on preferred stock Prepare the Journal entries and closing entries for the above transaction Prepare the owner’s equity section of the balance sheet based on the info above. Can I get some assistance with these questions? Please use the column with the initial K to calculate. heck_circle Expert Answer thumb_up thumb_down Step 1 When asset are purchased against common stock, the common stock is credited for only par value. The difference if any between the fair value of asset and the par value of stock is adjusted against stock premium or stock discount. Step 2 I would like to get a breakdown of how the calculation was done in parts 3 and 4 in the journal entries.

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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Assume one year later (2019) the company KY Jeweller’s Ltd has been formed and the owners are desirous of companying several financial transactions and possible outcomes to assist in guiding their decision-making process. 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 which is grouped according to your fist name initial. (Hint!!!! Example fist name Michael will use the initial M and that person should only use the info presented in line with the heading with their first name initial. You are not allowed to use info associated other initials other than that of your own as this will result in the forfeiture of the grade.)

The company’s charter authorizes 1,000,000 shares of common stock and 100,000 shares of preferred stock and the following are the transactions for consideration:

KY Jewelers purchased a piece of land from the original owner. In payment for the land, KY Jewelers issues ___ (please refer to table below and use only the info in line with your fist name initial) shares of common stock with $1.00 par value. The land has been appraised at a market value of ____ (Please refer to table below for land value under the category with your first name initial).

First Name Initial	# of shares issued	Value of land
A, P, I, E, V	300,000	$1,200,000
C, O, R, Y	350,000	$1,350,000
K, Q, M, F	380,000	$1,500,000
S, W, G, Z	400,000	$1,480,000
D, T, L, U	410,000	$1,560,000
N, B, J, X, H	390,000	$1,520,000

The company sold ___ (please refer to table below and use only the info in line with your fist name initial) shares of common stock with $1 par value.

First Name Initial	# of shares issued
A, P, I, E, V	120,000
C, O, R, Y	110,000
K, Q, M, F	150,000
S, W, G, Z	110,000
D, T, L, U	155,000
N, B, J, X, H	140,000

Issued ___ (please refer to table below and use only the info in line with your fist name initial) shares of $___ (please refer to table below and use only the info in line with your fist name initial) par value preferred stock. Shares were issued at par.

First Name Initial	# of shares issued	Par value
A, P, I, E, V	25,500	$20
C, O, R, Y	22,000	$18
K, Q, M, F	23,000	$16
S, W, G, Z	24,000	$14
D, T, L, U	25,000	$19
N, B, J, X, H	26,000	$22

Earned net income of $___ (please refer to table below and use only the info in line with your fist name initial).

First Name Initial	Net Income
A, P, I, E, V	$764,000
C, O, R, Y	$850,000
K, Q, M, F	$940,000
S, W, G, Z	$1,000,000
D, T, L, U	$880,000
N, B, J, X, H	$950,000

Dividend declared and paid - $0.15 per share on common stock

Dividend declared and paid - $5 per share on preferred stock
Prepare the Journal entries and closing entries for the above transaction
Prepare the owner’s equity section of the balance sheet based on the info above.

Can I get some assistance with these questions? Please use the column with the initial K to calculate.

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Expert Answer

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Step 1

When asset are purchased against common stock, the common stock is credited for only par value. The difference if any between the fair value of asset and the par value of stock is adjusted against stock premium or stock discount.

Step 2

I would like to get a breakdown of how the calculation was done in parts 3 and 4 in the journal entries.

b Answered: Assume one year later X
b Answered: Assume one year later X
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Date
Accounts & Explanation
Debit $
Credit $
1 Land
1,500,000
Common stock
380,000
Paid in capital in excess of par-common stock
1,120,000
To record purchase of land aainst common stock
2 Cash
150,000
Common stock
150,000
To record issue of common stock
3 Cash
368,000
Preferred stock
368,000
To record issue of preferred stock
4 Retained Earnings
194,500
Dividends payable-common stock(530000*0.15)
Dividends payable-preferred stock(23000*5)
To record declaration of dividend
79,500
115,000
Dividends payable-common stock((530000*0.15)
Dividends payable-preferred stock(23000*5)
79,500
115.000
Cash
194,500
To record payment of dividend
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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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