Ava School of Learning obtalned a charter at the start of 2020 that authorized 50,000 shares of no-par value common shares and 20,000 no-par value preferred shares. During 2020, the following selected transactions occurred: a. Collected $40 cash per share from four Individuals and Issued 5,000 common shares to each b. Issued 6,000 shares of common shares to an outslde Investor at $40 cash per share c. Issued 8,000 shares of preferred shares at $20 cash per share Required: 1. Prepare the Journal entrles Indicated for each of these transactions. (If no entry Is requlred for a transaction/event, select "No Journal entry required" In the first account field.) Vlew transaction Hlet Journal entry worksheet 1 Collected $40 cash per share from four individuals and issued 5,000 common shares to each. Record the transaction. Note: Enter debits before credits. Transaction General Joumal Debit Credit a. Record entry Clear entry View general Journal 2 Prepare the shareholders' equity section of the balance sheet at December 31, 2020. At the end of 2020, the accounts reflected ne Income of $36.000. No divldends were declared. Shareholders Equity-December 31, 2020 Contributed Capital: Total contributed capital Total shareholders' equity
Ava School of Learning obtalned a charter at the start of 2020 that authorized 50,000 shares of no-par value common shares and 20,000 no-par value preferred shares. During 2020, the following selected transactions occurred: a. Collected $40 cash per share from four Individuals and Issued 5,000 common shares to each b. Issued 6,000 shares of common shares to an outslde Investor at $40 cash per share c. Issued 8,000 shares of preferred shares at $20 cash per share Required: 1. Prepare the Journal entrles Indicated for each of these transactions. (If no entry Is requlred for a transaction/event, select "No Journal entry required" In the first account field.) Vlew transaction Hlet Journal entry worksheet 1 Collected $40 cash per share from four individuals and issued 5,000 common shares to each. Record the transaction. Note: Enter debits before credits. Transaction General Joumal Debit Credit a. Record entry Clear entry View general Journal 2 Prepare the shareholders' equity section of the balance sheet at December 31, 2020. At the end of 2020, the accounts reflected ne Income of $36.000. No divldends were declared. Shareholders Equity-December 31, 2020 Contributed Capital: Total contributed capital Total shareholders' equity
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ava School of Learning obtalned a charter at the start of 2020 that authorized 50,000 shares of no-par value common shares and
20,000 no-par value preferred shares. During 2020, the following selected transactions occurred:
a. Collected $40 cash per share from four Individuals and Issued 5,000 common shares to each
b. Issued 6,000 shares of common shares to an outside lInvestor at $40 cash per share
c. Issued 8,000 shares of preferred shares at $20 cash per share
Required:
1. Prepare the Journal entries Indicated for each of these transactions. (If no entry Is required for a transaction/event, select "No
Journal entry required" In the first account field)
Vlew transaction let
Journal entry worksheet
3
Collected $40 cash per share from four individuals and issued 5,000 common
shares to each. Record the transaction.
Note: Enter debits before credits
Transaction
General Jounmal
Debit
Credit
Record entry
Clear entry
2 Prepare the shareholders' equity section of the balance sheet at December 31, 2020. At the end of 2020, the accounts reflected net
Income of $36,000. No dividends were declared.
Shareholders Equity-December 31, 2020
Contributed Capital:
Total contributed capital
Total shareholders' equity
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