On June 1, 2013, 4,000 shares of $10 par value common stock are issued in exchange for new equipment. Comparable equipment sells for $58,000 cash. Other shares of this class of common stock originally sold for $13 per share in 2010. The journal entry to record this exchange should debit the Equipment account for what amount? Select one: A. $58,000 B. $40,000 C. $52,000 D. $-0- E. None of the above

On June 1, 2013, 4,000 shares of $10 par value common stock are issued in exchange for new equipment. Comparable equipment sells for $58,000 cash. Other shares of this class of common stock originally sold for $13 per share in 2010. The journal entry to record this exchange should debit the Equipment account for what amount? Select one: A. $58,000 B. $40,000 C. $52,000 D. $-0- E. None of the above

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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Prepare the journal entries for both 2016 and 2017. Byrd company bought computers for 60k. Terms of the sale were 2/10, n30. Byrd signed a 60000, 30 day note at 12% in order to take advantage of the discount terms. This transaction took place on dec 29 2016. Acct payable pd jan 2 2017. On dec 20 2016 byrd declared a 2.00 cash dividend. 10 thousand shares were outstanding on this date. Dividend is to b paid jan 5 2017
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Question(C) 1. On Septensber 1, 2015, Valdez Company reacquired 12,000 shares of ths$10par value ondinary shares for$15per share. Valdez uses the cost method to account for treasury shares. The joumal entry to record the reacquisition of the shares should debit a. Treasury Shares for$120,000. b. Share Capital-Ordinary for$120,000. c. Share Capital-Ordinary for$120,000and Share Premium-Ordinary for$60,000. 2. Long Co, issued 100,000 shares of$10par ordinary shares for$1,200,000. Long aequired 8,000 shares of its own shares at 515 per share. Three months later Long sold 4,000 of these shares at$19per share. If the cost method is used to record treasury shares transactions, to record the sale of the 4,000 treasury shares, Long should credit a. Treasury Shares for$76,000. b. Treasury Shares for$40,000and Share Premium-Treasury for$36,000. c. Treasury Shares for$60,000and Share Premium-Treasury Stock for$16,000. d. Treasury Shares for$60,000and Share Premium-Ordinary for$16,0003. Glavine…