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

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Q. 41. The issued share capital of a company consists of 24,640 ordinary shares of £1 each. Half way through its financial year the company made a rights issue of 1 for 11 at an exercise price of £1.58 a share. The market value of the company's shares was £2.15 a share just before the rights issue.. The company reported a net profit after taxation for the year of £7,392. The market value of each ordinary share at the end of the year was £2.94. Calculate the theoretical ex-rights value per share_______________. Q.42 The issued share capital of a company consists of 2,217,600 ordinary shares of £1 each. Half way through its financial year the company made a rights issue of 1 for 11 at an exercise price of £1.88 a share. The market value of the company's shares was £2.23 a share just before the rights issue.. The company reported a net profit after taxation for the year of £887,040. The market value of each ordinary share at the end of the year was £3.08. The…
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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
(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!!..
The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:Preferred 2% Stock, $100 par (100,000 shares authorized, 80,000 shares issued) . . . . . . $ 8,000,000Paid-In Capital in Excess of Par—Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 440,000Common Stock, $5 par (5,000,000 shares authorized, 4,000,000 shares issued) . . . . . . . 20,000,000Paid-In Capital in Excess of Par—Common Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,280,000Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,400,000During the year, the corporation completed a number of transactions affecting the stockholders’ equity. They are summarized as follows:a. Issued 200,000 shares of common stock at $12, receiving cash.b. Issued 8,000 shares of preferred 2% stock at $115.c. Purchased…
A company has 360,000 shares authorized, 120,000 shares issued, and 80,000 shares outstanding. It declares cash dividends of $1 per share. How much cash will the company pay for dividends? $80,000 $240,000 $120,000 $360,000 $40,000 Adjust Draw
Please use the information below to answer the question: Number of shares 70 Short sale price.......... shorted........ margin....... dividends per share paid since short sale date.... 75% Current price..... -$150 Initial $200 Cumulative $22 Maintenance margin 30% Based on this information, what is your current margin? Less requirement........ than 25% Between 25% and 50% Between 50% and 75% More than 75%
Parsons, Inc., is a publicly owned company. The following information is excerpted from a recent balance sheet. Dollar amounts (except for per share amounts) are stated in thousands. Stockholders’ equity:Convertible $17.20 preferred stock, $250 par value, 1,000,000 shares authorized; 345,000 shares issued and outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 86,250Common stock, par value $0.50; 25,000,000 shares authorized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,819Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,260Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,263 Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $237,592 Instructions From this information,…
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…
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