E11-6 Recording and Reporting Stockholders' Equity Transactions Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: a. Collected $40 cash per share from four individuals and issued 5,000 shares of common stock to each. b. Issued 6,000 shares of common stock to an outside investor at $40 cash per share. C. Issued 8,000 shares of preferred stock at $20 cash share. per Required: 1. Give the journal entries indicated for each of these transactions. 2. Prepare the stockholders' equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $36,000. No dividends were declared.

E11-6 Recording and Reporting Stockholders' Equity Transactions Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: a. Collected $40 cash per share from four individuals and issued 5,000 shares of common stock to each. b. Issued 6,000 shares of common stock to an outside investor at $40 cash per share. C. Issued 8,000 shares of preferred stock at $20 cash share. per Required: 1. Give the journal entries indicated for each of these transactions. 2. Prepare the stockholders' equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $36,000. No dividends were declared.

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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On-Line Learning Corporation obtained a charter at the beginning of this year that authorized 63,000 shares of no-par common stock and 30,000 shares of preferred stock, $19 par value. The corporation was organized by four individuals who purchased a total of 36,000 shares of the common stock. The remaining shares were to be sold to other individuals. During the year, the following selected transactions occurred: a. Collected $38 cash per share from the four organizers and issued 9,000 shares of common stock to each of them. b. Sold 10,000 shares of common stock to an outsider at $76 cash per share. c. Sold 11,000 shares of preferred stock at $57 cash per share. Required: 1. Prepare the journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) I'm unsure why this answer is wrong.
Selected Stock Transactions Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 400,000 shares of common stock with a par of $1. The following transactions affecting stockholders' equity were completed during the first year of operations. Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. a. Issued 7,000 shares of stock at par to Paul Glenn for cash. b. (1) Issued 600 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 19,000 shares of stock at par to Michele Kirby for cash. c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The building is mortgaged for $469,000 for 20 years at 7% and there is accrued interest of $6,500 on the mortgage note at the time of the purchase. The corporation agreed to…
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Selected stock transactions Alpha Sounds Corp., an electric guitar retailer, was organized by Michele Kirby, Paul Glenn, and Gretchen Northway. The charter authorized 450,000 shares of common stock with a par of $1. The following transactions affecting stockholders' equity were completed during the first year of operations. Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. a. Issued 13,500 shares of stock at par to Paul Glenn for cash. Cash Common Stock (1) Organizational Expenses Common Stock b. (1) Issued 450 shares of stock at par to Michele Kirby for promotional services provided in connection with the organization of the corporation, and (2) issued 20,000 shares of stock at pat to Michele Kirby for cash. (2) Cash Common Stock Land 13,500 Building Common Stock 13,500 70,000 450 20,000 c. Purchased land and a building from Gretchen Northway in exchange for stock issued at par. The land has a fair value of $70,000, and the…
TB MC Qu. 10-134 (Algo) Clothing Emporium was organized on January... Basu Emporium was organized on January 1, 2024. The firm was authorized to issue 140,000 shares of $8 par value common stock. During 2024, Basu Emporium had the following transactions relating to stockholders' equity: 1. Issued 42,000 shares of common stock at $10 per share 2. Issued 28,000 shares of common stock at $11 per share 3. Reported a net income of $140,000 4. Paid dividends of $70,000 What is total paid-in capital at the end of 2024? Multiple Choice $728,000 $658,000 $798,000 $868,000
Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: a. Collected $32 cash per share from four individuals and issued 4,200 shares of common stock to each. b. Issued 5,200 shares of common stock to an outside investor $32 cash per share. c. Issued 7,200 shares of preferred stock at $17 cash per share. Required: 1. Prepare the journal entries indicated for each of these transactions. 2. Prepare the stockholders' equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $28,000. No dividends were declared.
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Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: Collected $34 cash per share from four individuals and issued 4,400 shares of common stock to each. Issued 5,400 shares of common stock to an outside investor at $34 cash per share. Issued 7,400 shares of preferred stock at $19 cash per share. Required: Prepare the journal entries indicated for each of these transactions. Prepare the stockholders’ equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $30,000. No dividends were declared.