Nash Corporation had the following shareholders' equity on December 31, 2022: Common shares, 1, 240,000 shares authorized, issued and outstanding $7, 440,000 Contributed surplus (Common Shares) 82,000 Retained earnings 11,200,000 Total shareholders' equity $18,722, 000 The following transactions occurred, in the order given, during 2023: (a) 1,230 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the company at a price of $8 per share. According to the subscription contracts, a payment of $18 per subscription was required at the time the subscriptions were sold. (b) As per the subscription contracts, the second payment was for the balance of the subscription price. Of the 1,230 subscribers, 160 defaulted and did not make this second payment. (c) The subscription contracts specify that, in the event of default, the first payment will not be refunded to defaulting subscribers. Also, at this time, common shares are issued to subscribers that have fully paid on the contract. (d) Nash repurchased and cancelled 64,000 common shares at a cost of $4 per share. (e) A cash dividend of $0.65 per share was declared. The date of record was after all of the events above. Prepare the journal entries to record the above transactions for Nash Corporation for 2023. (Round average share price to 2 decimal places for your calculations, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account COMPLETE ALL JOURNAL ENTRIES
Nash Corporation had the following shareholders' equity on December 31, 2022: Common shares, 1, 240,000 shares authorized, issued and outstanding $7, 440,000 Contributed surplus (Common Shares) 82,000 Retained earnings 11,200,000 Total shareholders' equity $18,722, 000 The following transactions occurred, in the order given, during 2023: (a) 1,230 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the company at a price of $8 per share. According to the subscription contracts, a payment of $18 per subscription was required at the time the subscriptions were sold. (b) As per the subscription contracts, the second payment was for the balance of the subscription price. Of the 1,230 subscribers, 160 defaulted and did not make this second payment. (c) The subscription contracts specify that, in the event of default, the first payment will not be refunded to defaulting subscribers. Also, at this time, common shares are issued to subscribers that have fully paid on the contract. (d) Nash repurchased and cancelled 64,000 common shares at a cost of $4 per share. (e) A cash dividend of $0.65 per share was declared. The date of record was after all of the events above. Prepare the journal entries to record the above transactions for Nash Corporation for 2023. (Round average share price to 2 decimal places for your calculations, e.g. 52.75 and final answers to 0 decimal places, e.g. 5,275. List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account COMPLETE ALL JOURNAL ENTRIES
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Foc
Don't upload any image
Transcribed Image Text:Nash Corporation had the following shareholders' equity on December 31, 2022: Common shares, 1, 240, 000 shares
authorized, issued and outstanding $7, 440,000 Contributed surplus (Common Shares) 82,000 Retained earnings
11,200,000 Total shareholders' equity $18,722, 000 The following transactions occurred, in the order given, during 2023:
(a) 1,230 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the
company at a price of $8 per share. According to the subscription contracts, a payment of $18 per subscription was required
at the time the subscriptions were sold. (b) As per the subscription contracts, the second payment was for the balance of the
subscription price. Of the 1,230 subscribers, 160 defaulted and did not make this second payment. (c) The subscription
contracts specify that, in the event of default, the first payment will not be refunded to defaulting subscribers. Also, at this
time, common shares are issued to subscribers that have fully paid on the contract. (d) Nash repurchased and cancelled
64,000 common shares at a cost of $4 per share. (e) A cash dividend of $0.65 per share was declared. The date of record
was after all of the events above.Prepare the journal entries to record the above transactions for Nash Corporation for
2023. (Round average share price to 2 decimal places for your calculations, e.g. 52.75 and final answers to 0 decimal
places, e. g. 5,275. List all debit entries before credit entries. Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account COMPLETE ALL JOURNAL
ENTRIES
Transcribed Image Text:Prepare the journal entries to record the above transactions for Nash Corporation for 2023. (Round average share price to 2 decimal
places for your calculations, e.g. 52.75 and final answers to O decimal places, e.g. 5,275. List all debit entries before credit entries. Credit account
titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account
titles and enter O for the amounts.)
No. Accounts Titles and Explanation
(a)
(b)
(c)
(d)
(e)
Share Subscriptions Receivable
Common Shares Subscribed
(To record sale of shares on a subscription basis)
Cash
Share Subscriptions Receivable
(To record collection of down payment)
Common Shares
Share Subscriptions Receivable
Common Shares Subscribed
Common Shares
Accounts Payable
(To record forfeit of payment from defaulting subscribers)
Common Shares Subscribed
Common Shares
(To record issuance of shares)
Dividends
Dividends Payable
Debit
98400
22140
76260
Credit
771355
98400
COON OF TE
DEOD AN DOEN
22140
76260
22720
85600
771355
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education