Blue Spruce Corporation began operations on April 1 by issuing 60,500 shares of $5 par value common stock for cash at$19 per share. On April 19, it issued 2,550 shares of common stock to attorneys in settlement of their bill of$27,100 for organization costs. In addition, Blue Spruce issued 1,250 shares of $1 par value preferred stock for $5 cashper share.Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded. (List alldebit entries before credit entries. Record journal entries in the order presented in the problem.Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount Titles and Explanation(To record issuance of common stock forattorney's fees)(To record issuance of Preferred stock for cash)DebitICre

The journal entry is the format under which the business entity identifies, evaluates, and analyses…

Answered: Blue Spruce Corporation began…

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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When Wisconsin Corporation was formed on January 1, the corporate charter provided for 95,400 shares of $10 par value common stock. During its first month of operation, the corporation issued 8,990 shares of stock at a price of $21 per share. The journal entry for this transaction would include a a. debit to Common Stock for $95,400 b. debit to Cash for $89,900 c. credit to Paid-In Capital in Excess of Par—Common Stock for $98,890 d. credit to Common Stock for $188,790
On May 1, Foress Corporation incorporated and authorized 211,000 preferred shares and an unlimited number of common shares. On May 2, Foress issued 1,900 common shares for $15 per share. On June 15, it issued an additional 1,100 common shares for $18 per share. On November 1, Foress issued 230 preferred shares for $30 per share. On December 15, it issued an additional 230 preferred shares for $37 per share. (a) Record the share transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit
Gotham Inc. issued 10,000 shares of its $2 par value common stock for $25 per share. The journal entry to record this transaction should include the following: (check all that apply) Select one or more: a. debit "Common Stock" for $20,000. b. credit "Additional Paid-in Capital" for $250,000. c. debit "Cash" for $250,000. d. credit "Additional Paid-in Capital" for $230,000. e. credit "Common Stock" for $20,000. f. credit "Common Stock" for $250,000. g. credit "Additional Paid-in Capital" for $270,000.
Liberward, Inc., sold and issued 1,000 shares for $15 per share. The book value of the shares was $10 per share. The journal entry to record the share issue would include which of the following? A). A debit to Cash for $10,000. B). A credit to Common Shares for $10,000. C). A credit to Common Shares for $15,000. D). A credit to Cash for $15,000
Feeney Corporation is authorized to issue 200,000 shares of $1 par value common stock and 50,000 shares of $10 par value preferred stock. During the year the company issued the following shares: Feb 2 Issued 20,000 shares of common stock, $1 par value, for cash of $40,000. Mar 17 Issued 2,000 shares of preferred stock, $10 par value, for cash of $25,000. May 24 Issued 10,000 shares of common stock, $1 par value, for cash of $30,000. Aug 15 Purchased 2,000 shares of common stock for $28,000 to put into the treasury. Oct 12 Sold 1,000 shares of treasury stock for $16 per share. a. How many common shares have been issued? b. How many common shares are outstanding? c. How many preferred shares…
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Pronghorn Corp began operations on April 1 by issuing 52,200 shares of $4 par value common stock for cash at $15 per share. In addition, Pronghorn issued 2,300 shares of $1 par value preferred stock for $5 per share. Journalize the issuance of the common and preferred shares. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit April 1 (To record issuance of mon shares) April 1 (To record issuance of preferred shares)
On January 1, Vermont Corporation had 41,000 shares of $12 par value common stock issued and outstanding. All 41,000 shares had been issued in a prior period at $22 per share. On February 1, Vermont purchased 1,080 shares of treasury stock for $28 per share and later sold the treasury shares for $20 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1 would include what?
On January 1, Vermont Corporation had 49,400 shares of $11 par value common stock issued and outstanding. All 49,400 shares had been issued in a prior period at $22 per share. On February 1, Vermont purchased 910 shares of treasury stock for $24 per share and later sold the treasury shares for $19 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1 would include a debit to a loss account for $1,820. credit to a gain account for $1,820. credit to Treasury Stock for $21,840. debit to Treasury Stock for $21,840. MacBook Pro
Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the account that should be recorded in the Description column of the Journal item (2) as the credit account and the dollar amount in the amount columns assuming that Sunshine Corp on Jan . 15 received cash for the issuance of 2,000 shares of preferred stock at par value. JOURNAL Date Description P.Ref DEBIT CREDIT Jan. 15 (1) (?) (2) (?) (2) (?) Group of answer choices Preferred Stock credit $200,000 Preferred Stock credit for $10,000 Cash credit for $200,000 Cash credit for $10,000
On July 1, Pina Colada Corp. purchases 610 shares of its $5 par value common stock for the treasury at a cash price of $9 per share. On September 1, it sells 230 shares of the treasury stock for cash at $12 per share. Journalize the two treasury stock transactions.

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