Jan. 1 Jan. 10 Mar. 10 Apr. 15 Aug. 20 Oct. 11 Dec. 31 The company was granted a charter that authorizes the issuance of an unlimited number of common shares, and 268,000 preferred shares that entitle the holder to a $4 per share annual dividend. Issued 15,400 common shares to the founders of the corporation for land that has a fair value of $462,000. Issued 4,400 preferred shares for cash for $100 per share. Issued 110 common shares to a car dealer in exchange for a used vehicle. The asking price for the car is $6,300. At the time of the exchange, the common shares are selling at $58 per share. Decided to issue shares on a subscription basis to select individuals, giving each person the right to purchase 230 common shares at $60 per share. Forty individuals accepted the company's offer and agreed to pay 10% down and the remainder in three equal monthly instalments starting in February 2021. Issued 3,000 common shares and 600 preferred shares for a lump sum of $227,300 cash. At the time of sale, both the common and preferred shares were actively traded. The common shares were trading at $58 each; the preferred shares at $105 each. Declared cash dividends totalling $26,000, payable on January 31, 2021, to holders of record on January 15, 2021. (a) Prepare the general journal entries to record the transactions.
Jan. 1 Jan. 10 Mar. 10 Apr. 15 Aug. 20 Oct. 11 Dec. 31 The company was granted a charter that authorizes the issuance of an unlimited number of common shares, and 268,000 preferred shares that entitle the holder to a $4 per share annual dividend. Issued 15,400 common shares to the founders of the corporation for land that has a fair value of $462,000. Issued 4,400 preferred shares for cash for $100 per share. Issued 110 common shares to a car dealer in exchange for a used vehicle. The asking price for the car is $6,300. At the time of the exchange, the common shares are selling at $58 per share. Decided to issue shares on a subscription basis to select individuals, giving each person the right to purchase 230 common shares at $60 per share. Forty individuals accepted the company's offer and agreed to pay 10% down and the remainder in three equal monthly instalments starting in February 2021. Issued 3,000 common shares and 600 preferred shares for a lump sum of $227,300 cash. At the time of sale, both the common and preferred shares were actively traded. The common shares were trading at $58 each; the preferred shares at $105 each. Declared cash dividends totalling $26,000, payable on January 31, 2021, to holders of record on January 15, 2021. (a) Prepare the general journal entries to record the transactions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jan.
1
Jan.
10
Mar.
10
Apr.
15
Aug.
20
Oct.
11
Dec.
31
The company was granted a charter that authorizes the issuance of an unlimited number of common shares,
and 268,000 preferred shares that entitle the holder to a $4 per share annual dividend.
Issued 15,400 common shares to the founders of the corporation for land that has a fair value of $462,000.
Issued 4,400 preferred shares for cash for $100 per share.
Issued 110 common shares to a car dealer in exchange for a used vehicle. The asking price for the car is
$6,300. At the time of the exchange, the common shares are selling at $58 per share.
Decided to issue shares on a subscription basis to select individuals, giving each person the right to purchase
230 common shares at $60 per share. Forty individuals accepted the company's offer and agreed to pay 10%
down and the remainder in three equal monthly instalments starting in February 2021.
Issued 3,000 common shares and 600 preferred shares for a lump sum of $227,300 cash. At the time of sale,
both the common and preferred shares were actively traded. The common shares were trading at $58 each;
the preferred shares at $105 each.
Declared cash dividends totalling $26,000, payable on January 31, 2021, to holders of record on January 15,
2021.
(a)
Prepare the general journal entries to record the transactions.
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