Daley Welding Corporation sells and services pipe welding equipment in Illinois. Thefollowing selected accounts appear in the ledger of Daley Welding Corporation on May 1,2012, the beginning of the current fiscal year:Preferred 2% Stock, $40 par (50,000 shares authorized,40,000 shares issued)Paid-In Capital in Excess of Par-Preferred Stock..Common Stock, $8 par (1,000,000 shares authorized,750,000 shares issued)Paid-In Capital in Excess of Par-Common Stock...Retained Earnings.......$ 1,600,000240,0006,000,0002,500,00043,175,000During the year, the corporation completed a number of transactions affecting thestockholders' equity. They are summarized as follows:a. Purchased 100,000 shares of treasury common for $1,500,000.b. Sold 60,000 shares of treasury common for $1,080,000.C. Issued 8,000 shares of preferred 2% stock at $50.d. Issued 150,000 shares of common stock at $21, receiving cash.e. Sold 25,000 shares of treasury common for $362,500.f. Deçlared cash dividends of $0.80 per share on preferred stock and $0.11 per shareon common stock.g. Paid the cash dividends.InstructionsJournalize the entries to record the transactions. Identify each entry by letter.

The dividends payable of $137,400 is computed by adding the multiplication of total common stocks,…

Answered: Daley Welding Corporation sells and…

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

An excerpt from the financial records of Windle Inc. (Windle) at December 31, 2019, was as follows: Preferred shares, Series A, $5, cumulative, 60,000 shares issued and outstanding $ 6,000,000 Preferred shares, Series B, $6.50, non-cumulative, 40,000 shares issued and outstanding $ 4,000,000 Common shares, 1,800,000 shares issued and outstanding $25,400,000 The following common share transactions took place in 2020: April 1: Windle issued 200,000 common August 31: Windle repurchased and cancelled 60,000 common October 31: Windle issued 100,000 common shares. Additional information: Windle’s net income for the year ended December 31, 2020, was $17,600,000. Dividends on preferred shares in arrears and for the current year were declared in full on December 15, 2020 (dividends on preferred shares were in arrears and had last been declared in full on December 15, 2018). Windle is subject to tax at a rate of 30%, and reports under Required: Calculate Windle’s…
Herman Inc. has 180,000 shares of $5 par common stock outstanding at the beginning of the year 2022. The following transactions affecting stockholders’ equity occured suring the year. Assume Paid-in Capital—Treasury Stock has a zero beginning balance. · January 15: Purchased common stock as treasury shares, 6,000 shares at $20. · April 15: Sold common treasury stock, 2,400 shares at $14. The journal entry on April 15, 2022 will include: A) A credit to Treasury Stock for $120,000 B) A debit to Retained Earnings for $14,400 C) A debit to Treasury Stock for $48,000 D) A debit to Paid-in-Capital, Treasury Stock for $14,400
At the beginning of 2019, Hardin Company had 200,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock: March 1 Issued 48,000 shares of stock at $25 per share. June 1 Issued a 15% stock dividend. July 1 Issued 10,000 shares of stock at $30 per share. Aug. 31 Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share. Oct. 31 Reacquired 94,000 shares as treasury stock at a cost of $33 per share. Nov. 30 Reissued 46,000 treasury shares at a price of $36 per share. Required: 1. Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number. fill in the blank 1 shares2. Determine the number of common shares outstanding at December 31, 2019. fill in the blank 2 shares
Wildhorse Corporation was organized on January 1, 2025. It is authorized to issue 9,200 shares of 8%, $100 par value preferred stock, and 538,600 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Mar. 1 Apr. May Aug. 1 1 1 Sept. 1 Nov. 1 Issued 80,120 shares of common stock for cash at $6 per share. Issued 5,470 shares of preferred stock for cash at $112 per share. Issued 24,910 shares of common stock for land. The asking price of the land was $90,180; the fair value of the land was $80,120. Issued 80,120 shares of common stock for cash at $9 per share. Issued 9,200 shares of common stock to attorneys in payment of their bill of $51,900 for services rendered in helping the company organize. Issued 9,200 shares of common stock for cash at $11 per share. Issued 1,090 shares of preferred stock for cash at $113 per share. Prepare the journal entries to cord the above transactions. (List all…
2. Duke Co. had 200,000 shares of stock outstanding on January 1, 2021. On April 1, 2021, Duke issued 84,000 shares. On July 1, Duke purchased 8,000 treasury shares, which were reissued on November 1. Compute Duke’s weighted-average number of shares outstanding for 2021.
Vaughn Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,720,000 shares of $10 par common stock. At no time has Vaughn issued any potentially dilutive securities. Listed below is a summary of Vaughn's common stock activities. 1. 2. 3. 4. rol (b) Number of common shares issued and outstanding at December 31, 2018 Shares issued as a result of a 10% stock dividend on September 30, 2019 Shares issued for cash on March 31, 2020 Number of common shares issued and outstanding at December 31, 2020 A 2-for-1 stock split of Vaughn's common stock took place on March 31, 2021 Your answer is incorrect. 1,910,000 191,000 1,830,000 3,931,000 Compute the weighted average number of common shares used in computing earnings per common share for 2020 on the 2020 comparative income statement. LICE
At the beginning of 2019, Hardin Company had 210,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock: March 1 Issued 48,000 shares of stock at $21 per share. June 1 Issued a 10% stock dividend. July 1 Issued 14,000 shares of stock at $26 per share. Aug. 31 Issued a 2-for-1 stock split on outstanding shares, reducing the par value to $5 per share. Oct. 31 Reacquired 98,000 shares as treasury stock at a cost of $29 per share. Nov. 30 Reissued 53,000 treasury shares at a price of $32 per share. Required: 1. Determine the weighted average number of shares outstanding for computing the current earnings per share. Round your interim computations and final answer for the number of shares to nearest whole number. shares 2. Determine the number of common shares outstanding at December 31, 2019. shares
Windsor Corporation was organized on January 1, 2020. It is authorized to issue 9,700 shares of 8%, $100 par value preferred stock, and 540,200 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. Issued 80,290 shares of common stock for cash at $6 per share. 10 Mar. Issued 5,190 shares of preferred stock for cash at $111 per share. 1 Issued 24,970 shares of common stock for land. The asking price of the land was $91,64O; the fair value of the land was $80,290. Apr. 1 May Issued 80,290 shares of common stock for cash at $9 per share. 1 Aug. Issued 9,700 shares of common stock to attorneys in payment of their bill of $49,100 for services rendered in helping the 1 company organize. Sept. Issued 9,700 shares of common stock for cash at $11 per share. 1 Nov. Issued 1,060 shares of preferred stock for cash at $107 per share. 1
Ashvin
Glen Tay Inc. had issued 24,000 shares of its no-par common shares on April 1, 2017 for property with an appraisal value of $320,000. The common shares of the company were being traded at $13.15 each on that day. What is the journal entry required to record the issuance of the shares? Select one: a. DR Common Shares Receivable, $320,000; CR Common Share Capital, $315,600; CR Gain On Issue Of Shares, $4,400. b. DR Common Shares Receivable, $320,000; CR Common Share Capital, $315,600; CR Contributed Surplus - Common Shares, $4,400. c. DR Property, $320,000; CR Common Share Capital, $315,600; CR Retained Earnings -Issue Of Shares, $4,400. d. DR Property, $320,000; CR Common Share Capital, $315,600; CR Gain On Issue Of Shares, $4,400. e. None of the above entries.
As on January 1, 2021, Gerald corp had 480,000 common shares outstanding (no preferred shares issued). During 2021, the company has issued 70,000 shares on May 1, purchased 46,000 treasury shares on September 1, and issued 46,000 more shares on November 1. Find the weighted average of common shares outstanding for 2021. (Round off the number of shares)
Crane Ltd. began operations on January 2, 2024. During the year, the following transactions affected shareholders' equity: 1. Crane's articles of incorporation authorize the issuance of 2.5 million common shares and the issuance of 253,000 preferred shares, the latter of which pay an annual dividend of $3.0 per share. 2. A total of 303,000 common shares were issued for $6 a share, 3. A total of 35,000 preferred shares were issued for $10 per share. 4. The full annual dividend on the preferred shares was declared. 5. The dividend on the preferred shares was paid. 6. A dividend of $0.12 per share was declared on the common shares but was not yet paid. 7. The company had net income of $170,000 for the year. (Assume sales of $500,000 and total operating expenses of $330,000.) 8. The dividends on the common shares were paid. 9. The closing entry for the Dividends Declared account was prepared.

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