Crane Corporation had the following shareholders' equity on December 31, 2022: Common shares, 1,000,000 shares authorized, issued and outstanding Contributed surplus (Common Shares) Retained earnings Total shareholders' equity The following transactions occurred, in the order given, during 2023: (a) (b) (c) (d) (e) (b) (c) No. Accounts Titles and Explanation (a) (d) (e) Prepare the journal entries to record the above transactions for Crane Corporation for 2023. (Round average share price to 2 decimal places for your calculations, e.g. 52.75 and final answers to O decimal places, e.g. 5,275. 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) 1,000 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the company at a price of $8 per share. According to the subscription contracts, a payment of $20 per subscription was required at the time the subscriptions were sold. As per the subscription contracts, the second payment was for the balance of the subscription price. Of the 1,000 subscribers, 100 defaulted and did not make this second payment. $6,000,000 75,000 The subscription contracts specify that, in the event of default, the first payment will not be refunded to defaulting subscribers. Also, at this time, common shares are issued to subscribers that have fully paid on the contract. Crane repurchased and cancelled 50,000 common shares at a cost of $4 per share. A cash dividend of $0.10 per share was declared. The date of record was after all of the events above. (To record sale of shares on a subscription basis) 10,000,000 (To record collection of down payment) $16,075,000 (To record forfeit of payment from defaulting subscribers) (To record issuance of shares) Debit Credit
Crane Corporation had the following shareholders' equity on December 31, 2022: Common shares, 1,000,000 shares authorized, issued and outstanding Contributed surplus (Common Shares) Retained earnings Total shareholders' equity The following transactions occurred, in the order given, during 2023: (a) (b) (c) (d) (e) (b) (c) No. Accounts Titles and Explanation (a) (d) (e) Prepare the journal entries to record the above transactions for Crane Corporation for 2023. (Round average share price to 2 decimal places for your calculations, e.g. 52.75 and final answers to O decimal places, e.g. 5,275. 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) 1,000 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the company at a price of $8 per share. According to the subscription contracts, a payment of $20 per subscription was required at the time the subscriptions were sold. As per the subscription contracts, the second payment was for the balance of the subscription price. Of the 1,000 subscribers, 100 defaulted and did not make this second payment. $6,000,000 75,000 The subscription contracts specify that, in the event of default, the first payment will not be refunded to defaulting subscribers. Also, at this time, common shares are issued to subscribers that have fully paid on the contract. Crane repurchased and cancelled 50,000 common shares at a cost of $4 per share. A cash dividend of $0.10 per share was declared. The date of record was after all of the events above. (To record sale of shares on a subscription basis) 10,000,000 (To record collection of down payment) $16,075,000 (To record forfeit of payment from defaulting subscribers) (To record issuance of shares) Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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Transcribed Image Text:Crane Corporation had the following shareholders' equity on December 31, 2022:
Common shares, 1,000,000 shares authorized, issued and outstanding
Contributed surplus (Common Shares)
Retained earnings
Total shareholders' equity
The following transactions occurred, in the order given, during 2023:
(a)
(b)
(c)
(d)
(e)
(a)
(b)
No. Accounts Titles and Explanation
(c)
(d)
Prepare the journal entries to record the above transactions for Crane Corporation for 2023. (Round average share price to 2 decimal
places for your calculations, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,275. 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.)
(e)
1,000 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the
company at a price of $8 per share. According to the subscription contracts, a payment of $20 per subscription was required
at the time the subscriptions were sold.
As per the subscription contracts, the second payment was for the balance of the subscription price. Of the 1,000
subscribers, 100 defaulted and did not make this second payment.
$6,000,000
75,000
The subscription contracts specify that, in the event of default, the first payment will not be refunded to defaulting
subscribers. Also, at this time, common shares are issued to subscribers that have fully paid on the contract.
Crane repurchased and cancelled 50,000 common shares at a cost of $4 per share.
A cash dividend of $0.10 per share was declared. The date of record was after all of the events above.
(To record sale of shares on a subscription basis)
10,000,000
(To record collection of down payment)
$16,075,000
(To record forfeit of payment from defaulting subscribers)
(To record issuance of shares)
Debit
Credit
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