Larkspur, Inc. began operations on April 1 by issuing 66.100 shares of $5 par value common stock for cash at $17 per share. On April19, it issued 1.750 shares of common stock to attorneys in settlement of their bill of $28,200 for organization costs. In addition,Larkspur issued 1,500 shares of $1 par value preferred stock for $5 cash per share.Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded. (Record journal entries in theorder presented in the problem. Credit account titles are automatically Indented when amount is entered. Do not Indent manually. If no entry isrequired, select "No Entry for the account titles and enter O for the amounts)(To record issuance of common stock for attorney's fees)

The Common stock alludes to stock in a corporation held by people having the right to participate in…

Answered: Larkspur, Inc. began operations on…

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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Rodriguez Corporation issues 17,000 shares of its common stock for $288,000 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The stock has a $16 par value. 2. The stock has neither par nor stated value. 3. The stock has a $8 stated value. View transaction list Journal entry worksheet > A B C Record the issue of 17,000 shares of $16 par value common stock for $288,000 cash. Note: Enter debits before credits. Transaction 1 Cash General Journal Debit Credit >
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Gotham Inc. issued 10,000 shares of its $2 par value common stock for $25 per share. The journal entry to record this transaction should include the following: (check all that apply) Select one or more: a. debit "Common Stock" for $20,000. b. credit "Additional Paid-in Capital" for $250,000. c. debit "Cash" for $250,000. d. credit "Additional Paid-in Capital" for $230,000. e. credit "Common Stock" for $20,000. f. credit "Common Stock" for $250,000. g. credit "Additional Paid-in Capital" for $270,000.
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Pronghorn Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock. Feb. 1 Issued 49,500 shares for cash at $53 per share. July 1 Issued 64,500 shares for cash at $58 per share. - Your answer is partially correct. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Feb.1 Cash Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock July 1 Cash Preferred Stock Paid-in Capital in Excess of Par-Preferred Stock Debit 2332000 3741000 Credit 2475000 132000 3225000 516000
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, Year 1, were as follows: 1. Journalize the selected transactions. a. Issued 15,000 shares of $20 par common stock at $30, receiving cash. b. Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash c. Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. d. Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held and 20,000 shares of preferred stock were outstanding. e. Paid the cash dividends declared in (d). f. Purchased 7,500 shares of Solstice Corp. at $40 per share plus a $150 brokerage commission. The investment is classified as an available-for-sale investment. g. Purchased 8,000 shares of treasury common stock at $33 per share h. Purchased 40,000 shares of Pinkberry Co. stock…
OM, Inc. was organized on January 1, 20X5. The firm was authorized to issue 1,000,000 shares of $3 par value common stock. During 20X5, OM had the following transactions relating to stockholders' equity: Issued 50,000 shares of common stock at $7 per share. Issued 30,000 shares of common stock at $8 per share. Reported a net income of $100,000. Paid dividends of $50,000. What is the total amount recorded in the Common Stock account at the end of 20X5? Select one: a. $240,000 b. $160,000 c. $80,000 d. $-0- e. $590,000
Selected transactions completed by Equinox Products Inc. during the fiscal year ended December 31, 20Y8, were as follows: Record on journal page 10: Jan. 3 Issued 15,000 shares of $20 par common stock at $30, receiving cash. Feb. 15 Issued 4,000 shares of $80 par preferred 5% stock at $100, receiving cash. May 1 Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. 16 Declared a quarterly dividend of $0.50 per share on common stock and $1.00 per share on preferred stock. On the date of record, 100,000 shares of common stock were outstanding, no treasury shares were held, and 20,000 shares of preferred stock were outstanding. 26 Paid the cash dividends declared on May 16. Jun. 8 Purchased 8,000 shares of treasury common stock at $33 per share. 30 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. Jul. 11 Paid the cash dividends to the preferred…
Splish Brothers Inc. had the following transactions during the current period. Mar. 2 Issued 4,700 shares of $5 par value common stock to attorneys in payment of a bill for $27,800 for services performed in helping the company to incorporate. June 12 Issued 56,700 shares of $5 par value common stock for cash of $355,300. July 11 Issued 2,900 shares of $100 par value preferred stock for cash at $120 per share. Nov. 28 Purchased 2,260 shares of treasury stock for $77,500. Journalize the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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
Larkspur, Inc. issues 7,600 shares of $108 par value preferred stock for cash at $116 per share. What are the journal entries for the issuance of the preferred stock?
Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. Indicate the account that should be recorded in the Description column of the Journal item (2) as the credit account and the dollar amount in the amount columns assuming that Sunshine Corp on Jan . 15 received cash for the issuance of 2,000 shares of preferred stock at par value. JOURNAL Date Description P.Ref DEBIT CREDIT Jan. 15 (1) (?) (2) (?) (2) (?) Group of answer choices Preferred Stock credit $200,000 Preferred Stock credit for $10,000 Cash credit for $200,000 Cash credit for $10,000

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