Required:1. Prepare the journal entries to record each of these transactions and to close the accounts. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)View transaction list View journal entry worksheetNo12345Transactiona.b.C.d-1.d-2.CashBuildingLandCommon sharesCashPreferred sharesCashCommon sharesPreferred sharesRevenuesExpensesIncome summaryIncome summaryRetained earningsGeneral JournalDebitCreditX King Corporation began operations in January, year 1. The charter authorized the following share capital:Preferred shares: 7 percent, $25 par value, authorized 49,000 shares.Common shares: no par value, authorized 179,500 shares.During year 1, the following transactions occurred in the order given:a. Sold and issued 24,500 common shares to each of the three organizers. Collected $10 cash per share from two of the organizers,and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the sharesimmediately. Assume that 35 percent of the non-cash payment received applies to the building.b. Sold and issued 6,900 preferred shares at $25 per share. Collected the cash and issued the shares immediately.c. Sold and issued 2,900 preferred shares at $25 and 2,900 common shares at $13 per share. Collected the cash and issued theshares immediately.d. The operating results at the end of year 11 were as follows:RevenuesExpenses, including income taxes$375,000217,500

Journal entry is the procedure for initially documenting commercial transactions in the books of…

Answered: King Corporation began operations in…

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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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
Rogers & Hart formed a corporation and had the following organization costs and stock transactions during the year: Transactions: June 30 Incurred the following costs of incorporation: Incorporation fees $ 900 Attorneys’ fees 6,000 Promotion fees 8,000 July 15 Issued 8,000 shares of $10 par common stock for $82,000 cash. Aug. 1 Received subscriptions for 10,000 shares of $10 par common stock for $101,500. 15 Issued 10,000 shares of $10 par common stock in exchange for a building with a fair market value of $104,800. 31 Received a payment of $51,500 for the common stock subscription. Sept. 3 Purchased 1,000 shares of its own $10 par common stock for $11 a share. 18 Received the balance in full for the common stock subscription and issued the stock. 30 Sold 500 shares of its treasury stock for $11.70 a share. Oct. 15 Issued 4,000 shares of $25 par, 8% preferred stock in exchange for land with a fair market value of $105,000. 31 Sold…
h. Purchased 40,000 shares of Pinkberry Co.'s common stock directly from the founders for $24 per share. Pinkberry has 125,000 shares issued and outstanding. Description Debit Credit i. Declared a $1.00 quarterly cash dividend per share on preferred stock. On the date of record, 20,000 shares of preferred stock had been issued. Description Debit Credit j. Paid the cash dividends to the preferred stockholders. Description Debit Credit k. Received $27,500 dividend from Pinkberry Co. investment in (h). Description Debit Credit I. Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of $375. The bonds are a held-to-maturity investment. Description Debit Credit
A corporation issued 250 shares of its $5 par value common stock in payment of a $3,300 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include: Multiple Choice O O A $1,250 debit to Organization Expenses. A $3,300 credit to Cash. A $3,300 debit to Common Stock. A $3,300 credit to Common Stock. A $2,050 credit to Paid-in Capital in Excess of Par Value, Common Stock.
Early in the year Bill Sharnes and several friends organized a corporation called Sharnes Communications, Inc. The corporation was authorized to issue 50,000 shares of $100 par value, 10 percent cumulative preferred stock and 400,000 shares of $2 par value common stock. The following transactions (among others) occurred during the year. Jan. 6 Issued for cash 20,000 shares of common stock at $14 per share. The shares were issued to Sharnes and 10 other investors. Jan. 7 Issued an additional 500 shares of common stock to Sharnes in exchange for his services in organizing the corporation. The stockholders agreed that these services were worth $7,000. Jan. 12 Issued 2,500 shares of preferred stock for cash of $250,000. June 4 Acquired land as a building site in exchange for 15,000 shares of common stock. In view of the appraised value of the land and the progress of the company, the directors agreed that the common stock was to be valued for purposes of this transaction…
Sun Corporation received a charter that authorized the issuance of 80,000 shares of $6 par common stock and 20,000 shares of $100 par, 8 percent cumulative preferred stock. Sun Corporation completed the following transactions during its first two years of operation. Year 1 Jan. 5 Sold 12,000 shares of the $6 par common stock for $8 per share. 12 Sold 2,000 shares of the 8 percent preferred stock for $110 per share. Apr. 5 Sold 16,000 shares of the $6 par common stock for $10 per share. Dec.31 During the year, earned $318,500 in cash revenue and paid $238,300 for cash operating expenses. 31 Declared the cash dividend on the outstanding shares of preferred stock for Year 1. The dividend will be paid on February 15 to stockholders of record on January 10, Year 2. Year 2 Feb. 15 Paid the cash dividend declared on December 31, Year 1. Mar. 3 Sold 3,000 shares of the $100 par preferred stock for $120 per share. May. 5 Purchased 400 shares of the common stock as treasury stock at $12 per…
North Wind Aviation received its charter during January authorizing the following capital stock:Preferred stock: 8 percent, par $10, authorized 20,000 shares.Common stock: par $1, authorized 50,000 shares. The following transactions occurred during the first year of operations in the order given: Issued a total of 35,000 shares of the common stock for $20 per share. Issued 10,000 shares of the preferred stock at $21 per share. Issued 2,500 shares of the common stock at $25 per share and 1,000 shares of the preferred stock at $21. Net income for the first year was $43,000, but no dividends were declared. Required: Prepare the stockholders’ equity section of the balance sheet at December 31.
A corporation issued 180 shares of its $5 par value common stock in payment of a $2,600 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include: Multiple Choice A $2,600 debit to Common Stock. A $2,600 credit to Cash. A $900 debit to Organization Expenses. A $1,700 credit to Paid - in Capital in Excess of Par Value, Common Stock. A $ 2,600 credit to Common Stock.
Fortuna Company is authorized to issue 1,000,000 shares of $1 par value common stock. In its first year, the company has the following transactions: Jan. Issued 38,000 shares at $11 share. 31 Jun. Issued 110,000 shares in exchange for land with a clearly 10 determined value of $810,000. Aug. Purchased 12,000 shares of treasury stock at $9 per share. 3 A. Prepare the journal entries to record the transactions. If an amount box does not require an entry, leave it blank. Jan. 31 Jun. 10 Aug. 3 B. Calculate how many shares of stock are outstanding at August 3. shares
When Wisconsin Corporation was formed on January 1, the corporate charter provided for 115,800 shares of $6 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 7,740 shares of stock at a price of $27 per share. The entry to record the above transaction would include a:
On April 2 a corporation purchased for cash 6,000 shares of its own $13 par common stock at $27 a share. It sold 4,000 of the treasury shares at $30 a share on June 10. The remaining 2,000 shares were sold on November 10 for $23 a share. a. Journalize the entries to record the purchase (treasury stock is recorded at cost). If an amount box does not require an entry, leave it blank b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank.
B6

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