MCore was organized on JAN 1, 2017. It is authorized to issue 20,000 shares of 6%, $40 parvalue preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 pershare. These stock transactions were completed during the first year.Jan10 Issued 100,000 shares of common stock for cash at $3 per share.Mar.1Issued 10,000 shares of preferred stock for cash at $55 per share.Apr.1Issued 25,000 shares of common stock for land. The asking price of the land was$90,000. The company's estimate of fair value of the land was $75,000.Issued 75,000 shares of common stock for cash at $4 per share.Issued 10,000 shares of common stock to attorneys in payment of their bill for$50,000 for services performed in helping the company organize.Issued 5,000 shares of common stock for cash at $6 per share.May 1Aug.1(a)Sept. 1Nov.1 Issued 2,000 shares of preferred stock for cash at $60 per share.Instructions(a) Journalize the transactions.(b) Post to the stockholders' equity accounts.Jan 10Mar 01Apr 01May 01Aug 01Sept 01Nov 01(b)Preferred StockDateMar 01Nov 01Common StockDateJan 10Apr 01May 01Aug 01Sept 01ExplanationXXMar 01Nov 01ExplanationXJan 10Apr 01May 01Aug 01Sept 01XXXXExplanationXXDebitXXExplanationXXXDebitXPaid-In Capital in Excess of Par - Preferred StockDateDebitCreditXXXXXXXXPaid-In Capital in Excess of Par - Common StockDateDebitCreditXCreditXXCreditXXBalanceBalanceBalanceBalance

Issue of stock is one of the important source of finance being used in business. It can be common…

Answered: MCore was organized on JAN 1, 2017. It…

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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Wildhorse Corporation was organized on January 1, 2025. It is authorized to issue 9,200 shares of 8%, $100 par value preferred stock, and 538,600 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Mar. 1 Apr. May Aug. 1 1 1 Sept. 1 Nov. 1 Issued 80,120 shares of common stock for cash at $6 per share. Issued 5,470 shares of preferred stock for cash at $112 per share. Issued 24,910 shares of common stock for land. The asking price of the land was $90,180; the fair value of the land was $80,120. Issued 80,120 shares of common stock for cash at $9 per share. Issued 9,200 shares of common stock to attorneys in payment of their bill of $51,900 for services rendered in helping the company organize. Issued 9,200 shares of common stock for cash at $11 per share. Issued 1,090 shares of preferred stock for cash at $113 per share. Prepare the journal entries to cord the above transactions. (List all…
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Knapp Industries began business on January 1, 2018 by issuing all of its 1,000,000 authorized shares of its $1 par value common stock for $40 per share. On June 30, Knapp declared a cash dividend of $2 per share to stockholders of record on July 31. Knapp paid the cash dividend on August 30. On November 1, Knapp reacquired 200,000 of its own shares of stock for $50 per share. On December 22, Knapp resold 100,000 of these shares for $60 per share. Required: Prepare all of the necessary journal entries to record the events described above. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018 assuming that the net income for the year was $6,000,000.
Early 2014, H industries was forms with authorization to issue 250,000 share of $10 par value common stock and 30,000 shares of $100 par value cumulative preferred stock. During 2014, all preferred stock was issued at par, and 120,000 shares of common stock were sold for $16 per share. The preferred stock is entitled to a dividends equal to 10 percent of its par value before any dividends are paid on the common stock. During the first five years of business (2014 through 2018), the company earned income totaling$3,700,00 and paid dividends of 50 cents per share each year on the common stock outstanding. On January 2,2016, the company purchased 20,000 shares of its own common stock in the open market for $400,00. On January 2, 2018, it reissued 10,000 shares of this thesauri stock for $250,000. The remaining 10,000 were still held in treasury at December 31,2018. Prepare the stockholders’ equity section of the balance sheet H industries at December 31, 2018. Include supporting…
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