Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and 10,000 shares of 9%, $100 par preferred stock. It enters into the following transactions on December 31: 1. Accepts a subscription contract to 7,000 shares of common stock at $41 per share and receives a 30% down payment. 2. Collects the remaining balance of the subscription contract and issues the common stock. 3. Acquires a building by paying $2,000 cash and issuing 3,000 shares of common stock and 900 shares of preferred stock. Common stock is currently selling at $45 per share; preferred stock has no current market value. The building is appraised at $1,310,000. 4. Sells 1,000 shares of common stock at $48 per share. 5. Sells 900 shares of preferred stock at $110 per share. 6. Declares a three-for-one stock split on the common stock, reducing the stated value to $2.00 per share. Required: Prepare the journal entries to record the preceding transactions. X General Journal GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 8
Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and 10,000 shares of 9%, $100 par preferred stock. It enters into the following transactions on December 31: 1. Accepts a subscription contract to 7,000 shares of common stock at $41 per share and receives a 30% down payment. 2. Collects the remaining balance of the subscription contract and issues the common stock. 3. Acquires a building by paying $2,000 cash and issuing 3,000 shares of common stock and 900 shares of preferred stock. Common stock is currently selling at $45 per share; preferred stock has no current market value. The building is appraised at $1,310,000. 4. Sells 1,000 shares of common stock at $48 per share. 5. Sells 900 shares of preferred stock at $110 per share. 6. Declares a three-for-one stock split on the common stock, reducing the stated value to $2.00 per share. Required: Prepare the journal entries to record the preceding transactions. X General Journal GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5 6 7 8
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1CP: Prepare general journal entries for the following transactions, identifying each transaction by...
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Question
Lodi Company is authorized to issue 100,000 shares of no-par, $6 stated-value common stock and 10,000 shares of 9%, $100 par preferred stock . It enters into the following transactions on December 31:
1. | Accepts a subscription contract to 7,000 shares of common stock at $41 per share and receives a 30% down payment. |
2. | Collects the remaining balance of the subscription contract and issues the common stock. |
3. | Acquires a building by paying $2,000 cash and issuing 3,000 shares of common stock and 900 shares of preferred stock. Common stock is currently selling at $45 per share; preferred stock has no current market value. The building is appraised at $1,310,000. |
4. | Sells 1,000 shares of common stock at $48 per share. |
5. | Sells 900 shares of preferred stock at $110 per share. |
6. | Declares a three-for-one stock split on the common stock, reducing the stated value to $2.00 per share. |
Required:
Prepare the |
X
General Journal
GENERAL JOURNAL
DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
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