Pass necessary Journal Entries: • On 01-03-2019, company forfeited 200 equity shares of $8 each. Haidar did not pay $3 per share in respect of share final call. On 02-04-2019, company reissued forfeited shares at $7 per share which was purchased by Tabu. • On 10-07-2017, Company forfeited 350 equity shares of Alia of Face value of $10 each for non-payment of $3 per share on first call and $2 per share on second and the final call. On 12-8-2017, all 350 forfeited shares are reissued at $7 per share which were bought by Ranveer.

Pass necessary Journal Entries: • On 01-03-2019, company forfeited 200 equity shares of $8 each. Haidar did not pay $3 per share in respect of share final call. On 02-04-2019, company reissued forfeited shares at $7 per share which was purchased by Tabu. • On 10-07-2017, Company forfeited 350 equity shares of Alia of Face value of $10 each for non-payment of $3 per share on first call and $2 per share on second and the final call. On 12-8-2017, all 350 forfeited shares are reissued at $7 per share which were bought by Ranveer.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Midwest Bank invests in equity securities. At the beginning of December 2019, the bank held no equity securities. During December of 2019, it entered into the following transactions: Dec. 10 Purchased 500 shares of Carroll Company common stock for $76 per share. Dec. 21 Purchased 800 shares of Dynamo Company common stock for $34 per share. At the end of December, the Carroll Company common stock had a quoted market price of $79 per share, and the Dynamo Company common stock had a quoted market price of $33 per share. Required: 1. Prepare journal entries to record the preceding information. 2. What is the unrealized holding gain or loss, and where is it reported in the 2019 financial statements? 3. Show how the bank reports the equity securities on its December 31, 2019, balance sheet.
On January 1, Year 9, the first day of its fiscal year, Noel Company purchased 2,000 shares of available-for-sale securities at a price of $10 per share. These securities had a fair value of $24,000 and $30,000 on December 31, Year 9, and December 31, Year 10, respectively. No dividends were paid, and all of the securities were sold on December 31, Year 10. Noel recognizes all holding gains and losses on available-for-sale securities before recognizing realized gain. Prepare the journal entries, if any, necessary for December 31, Year 9, and December 31, Year 10, that relate to these available-for-sale securities. Also prepare the journal entry to record the sale of the securities on December 31, Year 10. Ignore income tax effects. To prepare the entries, in the Account column, select the appropriate account from the list provided. Then enter the correct amounts in the Debit or Credit columns. Each choice may be used once, more than once, or not at all. Credit Choices Account December…
On May 3, Zirbal Corporation purchased 8,500 shares of its own stock for $93,500 cash. On November 4, Zirbal reissued 1,750 sha of this treasury stock for $21,000. Prepare the May 3 and November 4 journal entries to record Zirbal's purchase and reissuance of treasury stock. View transaction list Journal entry worksheet < 1 2 Record the purchase of 8,500 shares of its own stock for $93,500 cash. Note: Enter debits before credits. Date May 03 Record entry General Journal Clear entry Debit Credit View general journal
es On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown along with book values for TruData's accounts as follows. Revenues (1/1 to 7/1) Expenses (1/1 to 7/1) Retained earnings, 1/1 Cash and receivables Inventory Patented technology (net) Land Buildings and equipment (net) Liabilities Common stock Additional paid-in capital Multiple Choice $0. TruData Book Values $ (250,000) 170,000 (130,000) 140,000 190,000 230,000 400,000 100,000 (540,000) (300,000) (10,000) $15,000. Webstat Webstat Book Values Fair Values $ (130,000) 80,000 (150,000) 60,000 $ On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill?
39
A company buys debt securities for $2,000 on December 31, year 1. The debt securities are classified as available-for-sale. The company does not elect to use the fair value option for reporting its available-for-sale debt securities. The fair value of the securities increases to $7,000 on December 31, year 2, and to $9,500 on December 31, year 3. On December 31, year 3, the company sells the securities at fair value. Assume the company has a tax rate of 30%. What is the amount of the reclassification adjustment to other comprehensive income on December 31, year 3? A. $5,250 debit B. $ 7,500 debit C. $5,250 credit D. $ 7,500 credit
4. On January 1, 2021, Evan Co. purchased all of the common stock of Kristopher Corp. by issuing 15,000 shares of $1 par value common stock. Evan’s shares had a $30 per share fair value. On that date, Kristopher reported a net book value of $275,000. However, its equipment (with a five-year remaining life) was undervalued by $60,000 in the company’s accounting records. Any excess of consideration transferred over fair value of assets and liabilities is assigned to an unrecorded patent to be amortized over ten years. During 2021, Kristopher earned net income of $155,000 and paid dividends of $40,000. Kristopher’s net income and dividends for 2022 were $178,000 and $65,000, respectively. Required: Calculate the balance in the investment account on the books of Evan Co. at the end of 2022 under each of the following methods: a. equity method b. partial equity method c. initial value method. .
Peaceful Enterprises financial statements for the year ended December 31, 2021 are authorized for issue on March 15, 2022. On February 1, 2022, a fire destroyed partially the production site of the company resulting to damages of P3,000,000, only P1,500,000 of which is covered by insurance. On March 1,2022, Peaceful issued additional 100,000 shares at P10 par value. On March 10,2022, a customer owing P500,000 to the company filed for bankruptcy. Theallowance of doubtful accounts amounting to P300,000 as of December 31 included P100,000 pertaining to the said customer. What amount should be adjusted on December 31, 2022 in relation to these events?
Bramble Beverage Company is authorized to issue 22800 shares of 7%, $100 par value preferred stock and 530000 shares of no-par common stock with a stated value of $1 per share. If Bramble issues 12000 shares of common stock to pay its recent attorney's bill of $58800 for legal services on a land access dispute, which of the following would be the journal entry for Bramble to record? Legal Expense 58800 Common Stock 58800 Legal Expense 12000 Common Stock 12000 Legal Expense 58800 Common Stock 12000 Paid-in Capital in Excess of Par - Preferred 46800 Legal Expense 58800 Common Stock 12000 Paid-in Capital in Excess of Stated Value - Common 46800
Prepare Tiker Company's journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments portfolio. This is the first and only time the company purchased such securities. May 9 Purchases 380 shares of Higo stock as a short-term investment at a cost of $43 per share. Tiker has insignificant influence over Higo. June 2 Sells 140 shares of its investment in Higo stock ($6,020 cost) at $46 per share. December 31 The closing market price (fair value) of the Higo stock is $41 per share. View transaction list Journal entry worksheet 1 2 Purchases 380 shares of Higo stock as a short-term investment at a cost of $43 per share. Tiker has insignificant influence over Higo. Date May 09 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal
56
Peaceful Enterprises financial statements for the year ended December 31, 2021 are authorized for issue on March 15, 2022. On February 1, 2022, a fire destroyed partially the production site of the company resulting to damages of P3,000,000, only P1,500,000 of which is covered by insurance. On March 1, 2022, Peaceful issued additional 100,000 shares at P10 par value. On March 10, 2022, a customer owing P500,000 to the company filed for bankruptcy. The allowance of doubtful accounts amounting to P300,000 as of December 31 included P100,000 pertaining to the said customer. What amount should be adjusted on December 31, 2022 in relation to these events? *