Textbook Ref LO 14.2 Spring Company is authorized to issue 500,000 shares of $2 par value common stock. In its first year, the company has the following transactions: Jan 31. Issued 25,000 shares of stock at $9.75 per share Jun 10. Issued 9,000 shares of stock for legal services valued at $90,000 Aug 3. Purchased 1,000 shares of treasury stock at $9 per share Sep 10. Reissued 500 shares of its common stock held in the treasury for $12 per share. Jan 31. Number of shares issued Issue price per share Par Value per Share issued Excess over par value per share Cash Proceeds from the stock issue Proceeds credited to Common Stock Proceeds credited to paid in capital in excess of par Jun 10. Value of services received Number of shares issued as consideration Issue price per share Par Value per Share issued Excess over par value per share Consideration credited to Common Stock (Total $) Consideration credited to paid in capital in excess of par (Total $) Aug 3. Number of Treasury shares purchased Purchase price per share Total purchase price of the shares Sep 10. Number of shares reissued Reissue price per share, of which: Cost per share Reissue price above / below cost Total proceeds from the reissue, of which Proceeds credited to Treasury Stock Proceeds credited/debited to Additional Paid-in-capital from Treasury Stock Common Stock Authorized Shares Issued Shares Less: Treasury Stock Outstanding Shares Journal Entries Date Jan. 31 Jun 10 Aug. 3 Sep. 10 Account Title To record the share issue To record the treasury stock purchase ▼ To record the issue of shares in exchange for land To record the treasury stock purchase ▼ ▼ ▼ ▼ Debit Credit

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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Question

Textbook Ref LO 14.2
Spring Company is authorized to issue 500,000 shares of $2 par value common stock. In its first year, the company has the following transactions:
Jan 31.
Issued 25,000 shares of stock at $9.75 per share
Jun 10.
Aug 3.
Sep 10.
Jan 31.
Number of shares issued
Issue price per share
Par Value per Share issued
Excess over par value per share
Cash Proceeds from the stock issue
Proceeds credited to Common Stock
Proceeds credited to paid in capital in excess of par
Jun 10.
Value of services received
Number of shares issued as consideration
Issue price per share
Par Value per Share issued
Excess over par value per share
Consideration credited to Common Stock (Total $)
Consideration credited to paid in capital in excess of par (Total $)
Aug 3.
Number of Treasury shares purchased
Purchase price per share
Total purchase price of the shares
Issued 9,000 shares of stock for legal services valued at $90,000
Purchased 1,000 shares of treasury stock at $9 per share
Reissued 500 shares of its common stock held in the treasury for $12 per share.
Sep 10.
Number of shares reissued
Reissue price per share, of which:
Cost per share
Reissue price above / below cost
Total proceeds from the reissue, of which
Proceeds credited to Treasury Stock
Proceeds credited/debited to Additional Paid-in-capital from Treasury Stock
Common Stock
Authorized Shares
Issued Shares
Less: Treasury Stock
Outstanding Shares
Journal Entries
Date
Jan. 31
Jun 10
Aug. 3
Sep. 10
Account Title
To record the share issue
To record the treasury stock purchase
▼
To record the issue of shares in exchange for land
To record the treasury stock purchase
▼
Y
Debit
Credit

A
Exercise
Sheet 1
Sheet 3
Sheet 5
Total
Learning Objective Topic
LO 14.2
LO 14.3
LO 14.4
Stock Issue
Computations
Journal Entries
Cash dividends, stock dividends and stock splits
Computations
Journal Entries
Retained Earnings & Statement of SHE
Account Titles to use for this work
Cash
с
Property, Plant & Equipment
Legal Expenses
Common Stock
Additonal Paid in capital - Common Stock
Preferred Stock
Additonal Paid in capital - Preferred Stock
Treasury Stock
Additonal Paid in capital - Treasury Stock
Retained Earnings
Points Possible
Cash Dividends Payable
Common Stock Dividend Distributable
28
28
15
23
6
1
100
Instructions
1. DO NOT edit anything else but the color coded cells in the following manner
Pick an option from the dropdown
Inputs - Must be formatted as numbers
Computations - Must use formulas
References - Must refer to another cell in the same sheet
2. Make sure your work is formatted correctly as follows - cells with numerical values are right aligned, cells with text is left aligned
4. Use consistent font, font size and font color
E
5. Numerical values should be formatted as appropriate, for example, dates, percentages and dollars should all be formatted as such
6. Your grade is not only for the accuracy of your accounting work, but also for using formulas, cell references and formatting correctly
Points
Earned
0
F
G
H

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In the queston you didn't answer the ones for August 3, could you do it and use formulas for the one in blue? Also, could you explain in more detail de formulas, more so for the common stock.

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Could you include the formulas used for all the blue squares.

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