During its first year of operations, Criswell Inc. completed the following transactions relating to shareholders' equity.January 5:February 12:Issued 300,000 of its common shares for $8 per share and 3,000preferred shares at $110.Issued 50,000 shares of common stock in exchange for equipmentwith a known cash price of $310,000.The articles of incorporation authorize 5,000,000 shares with a par of $1 per share of common and 1,000,000preferred shares with a par of $100 per share.Required:Record the above transactions in general journal form.

Answered: During its first year of operations,…

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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Ehrlich Co. is authorized to issue 1,000,000 of it's $5 par value common stock. 1. Prepare entries for the following transactions: 1/15/22 Issued 100,000 shares of common stock for $6 per share 2/15/22 Issued 50,000 shares of common stock for $8 per share 4/15/22 Issued 70,000 shares of common stock for $9 per share 2. The company had net income of $250,000 for the year. Prepare the entry to close net income into retained earnings. 3.Prepare the Stockholders' equity section of the balance sheet for Ehrlich Co. at 12/31/22.
Inside Incorporated was issued a charter on January 15 authorizing the following capital stock: Common stock, $6 par, 100,000 shares, one vote per share. Preferred stock, 7 percent, par value $10 per share, 5,000 shares, nonvoting. The following selected transactions were completed during the first year of operations in the order given: Issued 21,000 shares of the $6 par common stock at $19 cash per share. Issued 3,100 shares of preferred stock at $23 cash per share. At the end of the year, the accounts showed net income of $39,000. Required: Prepare the stockholders’ equity section of the balance sheet at December 31.
Horton Company began business on January 1, 20x1 by issuing all of its 1,000,000 authorized shares of its $1 par value common stock for $20 per share. On June 30, the Company declared a cash dividend of $1 per share to stockholders of record on July 31. The Company paid the cash dividend on August 30. On November 1, Horton reacquired 200,000 of its own shares of stock for $25 per share. On December 22, the Company resold half of these shares for $30 per share. a. Prepare all of the necessary journal entries to record the events described above.b. Prepare the Stockholders' Equity section of the Balance sheet as of 12/31/20x1 assuming that the Net Income for the year was $3,000,000.
ABC Corporation's charter authorized 120,000 shares of common stock, par $10. During the first year, 25,000 shares were sold and issued at $18 per share; in addition, 800 shares were subscribed for at the same price. One half of the subscription price was collected during the year. At the end of the first year, reported net income was $22,000 and cash dividends of $6,000 were declared and paid. At year-end, liabilities amounted to $25,000. On the last day of the year, 100 shares of stock were purchased from a disgruntled stockholder at $22 per share (assume the cost method). At year end, what is the total amount of the company's total stockholders' equity? 480,400 478,200 455.400 472,200
MH Corp. was organized on January 1, 20X7. The firm was authorized to issue 100,000 shares of $5 par value common stock. During 20X7, MH had the following transactions relating to stockholders' equity: Issued 15,000 shares of common stock at $7 per share. Issued 10,000 shares of common stock at $9 per share. Reported a net income of $270,000. Paid dividends of $60,000. Purchased 3,000 shares of treasury stock at $10 (part of the 10,000 shares issued at $9). What is the total stockholders' equity of MH at the end of 20X7? Select one: a. $355,000 b. $375,000 c. $498,000 d. $378,000 e. $495,000
Whyville Corporation obtained its charter from the state in January that authorized 500,000 sharesof common stock, $1 par value. During the first year, the company earned $58,000 and the following selected transactions occurred in the order given:a. Issued 200,000 shares of the common stock at $23 cash per share.b. Reacquired 5,000 shares at $24 cash per share to use as stock incentives for senior management.Required:1. Indicate the effects of each transaction on the accounting equation.2. Prepare journal entries to record each transaction.3. Prepare the stockholders’ equity section of the balance sheet at December 31.
Global Marine obtained a charter from the state in January that authorized 1,000,000 shares of common stock, $5 par value. During the first year, the company earned $400,000 of net income, declared no dividends, and the following selected transactions occurred in the order given: Issued 100,000 shares of the common stock at $55 cash per share. Reacquired 25,000 shares at $50 cash per share. Reissued 10,000 shares from treasury for $51 per share. Reissued 10,000 shares from treasury for $49 per share. Questions: 1. Indicate the account, amount, and direction of the effect on above transaction. (Enter any decreases to Assets, Liabilities and Stockholders' Equity with a minus sign.) 2. Prepare journal entries to record each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 3. Prepare the stockholders’ equity section of the balance sheet at December 31. (Amounts to be deducted should be indicated by a minus…
Dwight Corporation in its first year of operations had the following stock transactions. Record each transaction in the journal provided. Mar 3 Issued 10,000 shares of common stock, $1 par value, for cash of $50,000. Apr 12 Issued 500 shares of preferred stock, $10 par value, for cash of $12,500. Jul 8 Issued 2,000 shares of preferred stock, $10 par value, in exchange for land valued at $60,000.
Beaker Corporation was organized on July 1, with an authorization of 50,000 shares of $4 no-par value preferred stock ($4 is the annual dividend) and 100,000 shares of $10 par value common stock. During July, the following transactions affecting stockholders' equity occurred: July 1 Issued 32,000 shares of common stock at $18 cash per share. 12 Issued 3,600 shares of common stock in exchange for equipment with a fair market value of $64,000. 15 Issued 6,000 shares of preferred stock for cash at $45 per share. Required a. Prepare journal entries to record the foregoing transactions. General Journal Date Description Debit Credit Jul.01 Answer Answer Answer Answer Answer Answer Paid-in-Capital in Excess of Par Value - Common Stock Answer Answer Issued shares of common stock. Jul.12 Answer Answer Answer Common Stock Answer Answer Answer Answer Answer Issued common stock for equipment. Jul.15 Answer Answer Answer Answer…
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When Wisconsin Corporation was formed on January 1, the corporate charter provided for 95,400 shares of $10 par value common stock. During its first month of operation, the corporation issued 8,990 shares of stock at a price of $21 per share. The journal entry for this transaction would include a a. debit to Common Stock for $95,400 b. debit to Cash for $89,900 c. credit to Paid-In Capital in Excess of Par—Common Stock for $98,890 d. credit to Common Stock for $188,790
During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock. Jan. 10 Mar. 1 Issued 80,000 shares for cash at $6 per share. Issued 5,000 shares to attorneys in payment of a bill for $35,000 for services rendered in helping the company to incorporate. July 1 Issued 30,000 shares for cash at $8 per share. Sept. 1 Issued 60,000 shares for cash at $10 per share. (a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share. (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. Record entries in the order displayed in the problem statement.)

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