Cash.............VI. An inexperienced accountant for Otto Corporation made the following entries:July 1210,000+Share Capital-Ordinary.........210,000+(Issued 15,000 no-par ordinary shares, stated value $10 per share)<Sept. 1Share Capital-Ordinary.28,000+Retained Earnings6,000+Cash................34,000+(Purchased 2,000 treasury shares (issued on July 1) at $17 per share)+Dec. 1Cash............Share Capital-Ordinary.......Gain on Sale of Shares.(Sold 1,000 treasury shares at $20 per share)+20,000+14,000+6,000+Instructions (18%)(a) Based on the explanation for each entry, prepare the entry that should have beenmade for the transactions. (Omit explanations.)(b) Prepare the correcting entries that should be made to correct the accounts of OttoCorporation. (Do not reverse the original entry.)

The correct entries for the transactions should have been as follows: - July 1: Debit Cash:…

Answered: Cash............. VI. An inexperienced…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A 120. Subject:- accounting
5. Magenta Corporation declared $0.70 per share cash dividends on September 18. The dividends were recorded and paid on September 23 and September 29, respectively. Magenta Corporation had 50,000 shares outstanding with par value of $1. The journal entry to record the transaction on September 29 is … a. Cash Dividends $35,000 Dividends Payable $35,000 b. No journal entry required on this date c. Retained Earnings $50,000 Cash Dividends $50,000 d. Dividends Payable $35,000 Cash $35,000
Rolive, 1B Handout B. 500 shares of common stock, par value $10, is sold for $25 per share. Аccount Dr. Cr.
(2) Paid dividends of $1.25 per share. There were 1,000,000 shares issued and 180,000 shares of treasury stock. A. Cash payment, $1,025,000 B. Cash receipt, $2,000 C. Cash receipt, $600,000 D. Cash receipt, $11,000 PLZ SHOW WORK!! PLZZ!!..
MC Qu. 11-183 A company reported net income... Brandies, Inc. reported net income of $10.32 million. At the beginning of the year, 4.2 million shares of common stock were outstanding and at the end of the year, 4.4 million shares were outstanding. No dividends were declared. The EPS is approximately: Multiple Choice $2.40. $2.35. $2.46. $1.20.
true or false.d. Issuing 1,000 shares of $5 par-value stock at $12 increases contributed capital by $12,000.
El Cemí Enterprises Stockholders equity section presents the following balances for January 1st: Common Stock, $8 par value (800,000) Shares authorized 500,000 shares issued......................................................................$5,600,000 Paid in Capital in Excess of Par-Common Stock.............................. $650,000 Retained earnings............................................................................. $8,120,000 Treasury stock at cost-Common (50,000 shares at cost)..................$650,000 Additional information: Transactions during the year January 3 - Paid cash dividens at $0.15 each common stock. The cash dividends were registered in last year declaration for $67,500. March 20 - The company issued 80,000 common stock for $1,100,000. May 5 - The company declared 3% of common stock dividend. The market stock rate is at $15 each share. July 8 - Company sold all their Treasury stocks for $820,000 September 4 - Company issued the certificates for May…
8
a. Journalize the following transactions: i. January 10. Received cash from three incorporators for 75,000 shares of common stock, $375,000.00. R1-3. ii. iii. iv. V. vi. vii. viii. ix. January 10. Paid cash to Aaron Lovell as a reimbursement for organization costs, $10,000. C1. Value of Preferred Stock January 10. Received a subscription from Amory Lin for 10,000 shares of common stock, $50,000.00. M1. Total Amount of Dividends January 15. Received cash for the face value of a 5-year, 10%, $1,000.00 par value bond issue, $50,000.00. R11. January 25. Received a subscription from Peter Lavine for 8,000 shares of common stock, $40,000.00. M2. February 14. Received cash from Amory Lin in partial payment of stock subscription, $25,000. R4. March 15. Paid cash to Peter Lavine for 500 shares of common stock at $10.00 per share. C112. March 20. Received cash from Amory Lin in final payment of stock subscription, $25,000.00. R5. b. At the end of the year, Al-Can Products, Inc. had issued…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS