On January 5, 2020, Stellar Corporation received a charter granting the right to issue 5,400 s cumulative and nonparticipating preferred stock, and 52,900 shares of $10 par value commor these transactions. Issued 20,100 shares of common stock at $15 per share. Issued to Sanchez Corp. 4,200 shares of preferred stock for the following assets: equipment a factory building with a fair value of $159,000; and land with an appraised value of $257,000 Purchased 1,800 shares of common stock at $18 per share. (Use cost method.) Sold the 1,800 treasury shares at $13 per share.

On January 5, 2020, Stellar Corporation received a charter granting the right to issue 5,400 s cumulative and nonparticipating preferred stock, and 52,900 shares of $10 par value commor these transactions. Issued 20,100 shares of common stock at $15 per share. Issued to Sanchez Corp. 4,200 shares of preferred stock for the following assets: equipment a factory building with a fair value of $159,000; and land with an appraised value of $257,000 Purchased 1,800 shares of common stock at $18 per share. (Use cost method.) Sold the 1,800 treasury shares at $13 per share.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 9P: Comprehensive Young Corporation has been operating successfully for several years. It is authorized...

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Comprehensive Young Corporation has been operating successfully for several years. It is authorized to issue 24,000 shares of no-par common stock and 6,000 shares of 8%, 100 par preferred stock. The Contributed Capital section of its January 1, 2019, balance sheet is as follows: Part a. A shareholder has raised the following questions: 1. What is the legal capital of the corporation? 2. At what average price per share has the preferred stock been issued? 3. How many shares of common stock have been issued (the common stock has been issued at an average price of 23 per share)? Part b. The company engaged in the following transactions in 2019: Required: 1. Answer the questions in Part a. 2. Prepare journal entries to record the transactions in Part b. 3. Prepare the Contributed Capital section of Youngs December 31, 2016, balance sheet.
Juniper Company is authorized to issue 5,000,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Mar. 1, issued 4,000 shares of stock in exchange for equipment worth $250,000. Journalize the transaction.
Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000
Vishnu Company is authorized to issue 500,000 shares of $2 par value common stock. In conjunction with its incorporation process and the IPO, the company has the following transaction: Apr. 10, issued 1,000 shares of stock for legal services valued at $15,000. Journalize the transaction.
Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
On January 5, 2020, Phelps Corporation received a charter granting the right to issue 5,000 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 50,000 shares of $10 par value common stock. It then completed these transactions. Jan. 11 Issued 20,000 shares of common stock at $16 per share. Feb. 1 Issued to Sanchez Corp. 4,000 shares of preferred stock for the following assets: equipmentwith a fair value of $50,000; a factory building with a fair value of $160,000; andland with an appraised value of $270,000. July 29 Purchased 1,800 shares of common stock at $17 per share. (Use cost method.) Aug. 10 Sold the 1,800 treasury shares at $14 per share. Dec. 31 Declared a $0.25 per share cash dividend on the common stock and declared thepreferred dividend. Dec. 31 Closed the Income Summary account. There was a $175,700 net income. Instructions a. Record the journal entries for the transactions listed above. b. Prepare the…
SHEA Corp. was organized on January 2020. Share capital transactions for the year are shown below: Jan.-5- Authorized to issue 50,000 shares of P10 par value ordinary share. 10-Issued 12,500 shares at P11 per share. Mar.- 25- Issued 500 shares for legal services valued at P6,000. Sept.-30-Issued 2,500 shares for a tract of land valued at P65,000. The journal entry to record the transaction on March 25 includes Select the correct response: O a credit to Share Premium of P6,000 Oa debit to Organization Cost of P6,000 O a credit to Share Capital of P6,000 O a debit to Cash of P6,000 < Previous 3ms 44Hz
Overland Corporation is authorized to issue 250,000 shares of $1 parvalue common stock. During 2020, Overland Corporation took part in the following selected transactions:1. Issued 55,000 shares of stock at $76 per share, less costs related to the issuance of the stock totaling $27,000.2. Issued 10,000 shares of stock for land appraised at $815,000. The stock was actively traded on a national stock exchange atapproximately $78 per share on the date of issuance.3. Purchased 6,000 shares of treasury stock at $74 per share. The treasury shares purchased were issued in 2009 at $46per share.Instructions(a) Prepare the journal entry to record item 1.(b) Prepare the journal entry to record item 2.(c) Prepare the journal entry to record item 3 using the cost method
Yoko Company was organized on May 25, 2020 and was authorized to issue 250,000 shares of Rs 15 nar and 10,000 shares of 8% Preferred Stock, par value Rs 50. The following were the Capital Stock transactions through September 15, 2020: Issued 50,000 shares of Common Stock to an investment group at Rs 20, Assets were obtained from Tom Co. in exchange for 75,000 Shares of Common Stock. The assets were appraised as follows: June 1: June 15: Rs 300,000 Rs 75,000 Rs 475,000 Rs 375,000 Merchandize Inventory Furniture & Fixtures Machinery & Equipment Land Subscriptions were received for 100,000 Shares of Common Stock at Rs 25 and for 5,000 Shares of Preferred 8% Stock at Rs 55. Each class of Stock is to b paid in full within 90 days, Payment was received in full against 90,000 Shares of Common Stock and all th 5,000 Shares of Preferred against the above subscriptions. Nothing is expect to be received against the remaining 10,000 Shares of the Common her cancelled. July 1: Sep 15: Required: 1)…
1. Edguy Company was organized on January 1, 2019. On that date, it issued 200,000 ordinary shares of P10 par value at P15 per share. The entity was authorized to issue 400,000 ordinary shares. During the period January 1, 2019 through December 31, 2020, the entity reported net income of P750,000 and paid cash dividend of P380,000. On January 5, 2020, the entity purchased 12,000 ordinary shares at P12 per share. On December 31, 2020, 8,000 treasury shares were sold at P8 per share and the remaining treasury shares were retired. The entity used the cost method of accounting for treasury shares. What amount should be reported as total shareholders' equity on December 31, 2020? * Your answer
1.On December 31, 2021, GWI Corporation reported 800,000 common shares outstanding and 2,000,000 common shares authorized. The corresponding common share capital was reported at $5,234,600. Assume that on March 1, 2022, GWI issued 12,000 common shares to OIL, Inc., in exchange for equipment with a fair market value of $130,000. The board of directors determined the appropriate market value per share as $7. On July 1, Marz purchased 20,000 of its shares in the market at $6.10 each and cancelled them. What will be the revised amount of the common share capital following these transactions? a. $5,232,467. b. $5,124,000. c. $5,187,600. d. $5,198,720. e. None of the above but $ . Use the information as follows to respond to Questions 2 and 3: On June 30, 2020, Tell Inc's reported its capital accounts as follows: Common Shares, no par, 40,000 shares outstanding $1,600,000 Retained Earnings 3,200,000 2. If a $2 per share cash dividend were declared but not paid. The capital accounts’ balances…