1. Red Corporation had the following transactions related to stockholders' equity for theperiod January to June 2021.Red Corporation had been registered as a public company and had beenauthorized to issue 300,000 ordinary sharesJan-15 Red Corporation issued 75,000 common stock with a par value of $12 whichwas sold at a market price of $21To fulfill the company's business plan, Red Corporation purchased a newwarehouse. This new warehouse had an asking price of $500,000. Thiswarehouse was purchased in exchange for 25,000 common stock at a parvalue of $12 and a market price of $18Mar-07 Issued 3,500 shares of common stock at par value of $12 to attorneys inpayment of their bill of $45,000 for services performed in helping thecompany solve legal problemsApr-04 Red Corporation issued 12,000 common stocks at par value of $12 which wassold at a market price of $25Apr-29 Issued 6,200 shares of common stock at par value of $12 for land. The askingprice of the land was $80,000 and the fair value of the land was $78,000Jun-12 Issued 20,000 common stocks at par value of $12 for $275,000Instruction:Journalize the transactions above!

Shares are issued to raise capital for the company. The holders of shares benefit when the value of…

Red Corporation had the following transactions related period January to June 2021. Red Corporation had been registered as a p authorized to issue 300,000 ordinary shares Red Corporation issued 75,000 common stock was sold at a market price of $21 To fulfill the company's business plan, Red

Red Corporation had the following transactions related period January to June 2021. Red Corporation had been registered as a p authorized to issue 300,000 ordinary shares Red Corporation issued 75,000 common stock was sold at a market price of $21 To fulfill the company's business plan, Red

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

Newton Inc. uses a calendar year for financial reporting. The company is authorized to issue 9,000,000 shares of $10 par common stock. At no time has Newton issued any potentially dilutive securities. Listed below is a summary of Newton's common stock activities. 1. 1Number of common shares issued and outstanding at December 31, 2018 2,000,000 2. 1Shares issued as a result of a 10% stock dividend on September 30, 2019 200,000 3. 1Shares issued for cash on March 31, 2020 2,000,000 1Number of common shares issued and outstanding at December 31, 2020 4,200,000 4. 1A 2-for-1 stock split of Newton's common stock took place on March 31, 2021 Instructions a. Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement. b. Compute the weighted-average number of common shares used in computing earnings per common share for 2020 on the 2020 comparative income…
Marin Corporation is authorized to issue 54,000 shares of $ 5 par value common stock. During 2020, Marin took part in the following selected transactions. 1. Issued 5,200 shares of stock at $ 42 per share, less costs related to the issuance of the stock totaling $ 5,900. 2. Issued 1,000 shares of stock for land appraised at $ 54,000. The stock was actively traded on a national stock exchange at approximately $ 43 per share on the date of issuance. 3. Purchased 460 shares of treasury stock at $ 43 per share. The treasury shares purchased were issued in 2016 at $ 40 per share. (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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No.…
On February 2019, Sean Company began operations by issuing at P15 per share 50% of the 950,000 ordinary shares of P1 par value that had been authorized for issue. In addition, the entity had 500,000 authorized preference shares of P5 par value. During 2019, the entity had P1,025,000 of net income and declared P230,000 of dividend. During 2020, the entity had the following transactions: Issued 100,000 ordinary shares for P17 per share. Issued 150,000 preference shares for P8 per share. Authorized the purchase of a custom-made machine to be delivered in January 2-021. The entity restricted P300,000 of retained earnings for the purchase of the machine. Issued additional 50,000 preference shares for P9 per share. Reported P1,215,000 of net income and declared on December 31, 2020 a dividend of P635,000 to shareholders of record on January 15, 2021 to be paid on February 1, 2021. As of 2019, how much is the total ordinary share premium?A. P6,650,000B. 10,850,000C. 11,850,000D.…
Blue Devil Inc. completed the following transactions of stock issuance, treasury stock and stock dividends during 2019 respectively. Prepare the journal entries for all these transactions. Each transaction is independent from the others. (1) On June 15, Blue Devil issued 20,000 shares of $10 par value common stock for cash of $15 per share. (2) On September 7, Blue Devil sold 5,000 shares of $5 par value preferred stock in exchange for a piece of equipment with a current market value of $75,000. (3) On October 19, Blue Devil repurchased 2,000 shares of the outstanding common stock at the market value of $25 per share (par value of $10).
Swifty Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2020, Swifty Corporation took part in the following selected transactions. 1. Issued 52,000 shares of stock at $73 per share, less costs related to the issuance of the stock totaling $28,600. Issued 12,000 shares of stock for land appraised at $942,000. The stock was actively traded on a national stock exchange at $75 per share on the date of issuance. 2. 3. Purchased 6,200 shares of treasury stock at $71 per share. The treasury shares purchased were issued in 2009 at $48 per share. (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. (Credit account titles are automatically indented when 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. Account Titles and Explanation Debit Credit (a) (b)…
Dakota Corporation had the following shareholders' equity account balances at December 31, 2018: Transactions during 2019 and other information relating to the shareholders' cquity accounts were as follows:1. Dakota's preferred and common shares are traded on the over-the-counter market. At December 31, 2018,Dakota had 100,000 authorized shares of $100 par, 10%, cumulative preferred stock; and 3,000,000 autho-rized shares of no-par common stock with a stated value of $5 per share.2. On January 9, 2019, Dakota formally retired all 30,000 shares of its treasury common stock and had them revert to an unissued basis. The treasury stock had been acquired on January 20, 2018. The shares were originally issued at $10 per share,3. Dakota owned 10,000 shares of Bush Inc, common stock purchased in 2016 for $750,000. The Bush stock was included in Dakota's short-term marketable securities portfolio at the end of 2018 at a value of $650,000.On February 13, 2019, Dakota declared a dividend in kind…
Yola Corporation is required to include 15 items in their 10-K for the year ending 9/30/21. In which required item from the 10-K would this content be located? "During the 4th quarter of fiscal 2021 we purchased 750,000 shares of company stock at an average price of $75 per share". Question 30 options: a) Market for Registrants Common Equity and Related Stockholders' Matters b) Legal Proceedings c) Business d) Financial Statements & Supplementary Data
Zakaryan Corporation was organized on January 1, 2020. The corporation's governing documents authorized the issue of 100,000 shares of $1 par common stock. During 2020, Zakaryan had the following transactions relating to stockholders' equity: Issued 10,000 shares of common stock at $14 per share. Issued 20,000 shares of common stock at $16 per share. Reported a net income of $200,000. Paid dividends of $100,000. Purchased 3,000 shares of treasury stock at $20 (part of the 20,000 shares issued at $16). What is total shareholders' equity at the end of 2020? O $600,000. O $540,000. O $500,000. O $400,000. 4
Upon submitting its corporate charter to the state, Lazer was granted permission to issue 6,000 shares of $0.30 par value common stock. Net income for the year for Lazer was $98,400. In addition, the following transactions took place during the year: January 2: March 12: Investors paid Lazer $7 each for 2,520 shares of common stock Lazer purchases 600 shares of its own common stock for $6.50 per share October 31: Lazer declared a 2-for-1 forward stock split As of December 31, how many shares are issued, and how many shares are outstanding? Select one: О a. Issued, 4,080; Outstanding, 2,520 O b. Issued, 4,080; Outstanding, 5,040 O c. Issued, 5,040; Outstanding, 1,920 о d. Issued, 5,040; Outstanding, 3,840
C. On March 1, 2018, Plain, Inc. sold 40,000 shares of its P 30 par value Ordinary Share Capital on a subscription basis at P 50 per share. The corporation received a 30% down payment on the date of subscription. On March 10, 2018, the corporation collected the balance of the subscription and issued the certificates. Required: Prepare the journal entries to record above transactions.
Waterway Inc. uses a calendar year for financial reporting. The company is authorized to issue 8,210,000 shares of $12 par common stock. At no time has Waterway issued any potentially dilutive securities. Listed below is a summary of Waterway's common stock activities. 1. 2. 3. 4. (a) Number of common shares issued and outstanding at December 31, 2018 Shares issued as a result of a 12% stock dividend on September 30, 2019 Shares issued for cash on March 31, 2020 Number of common shares issued and outstanding at December 31, 2020 A 2-for-1 stock split of Waterway's common stock took place on March 31, 2021 Your Answer Correct Answer Your answer is correct. 2,116,800 1,890,000 shares 226,800 2,100,000 Compute the weighted-average number of common shares used in computing earnings per common share for 2019 on the 2020 comparative income statement. 4,216,800
The articles of incorporation for Peahen Corp. authorize the company to issue 100,000 $6 preferred shares and 500,000 common shares. During first year of operations, Peahen Corp. completed the following selected transactions: (Click the icon to view the transactions.) Required 1. Record the transactions in the general journal. 2. Prepare the shareholders' equity section of the Peahen Corp. balance sheet at November 30, 2020. Requirement 1. Record the transactions in the journal. (Record debits first, then credits. Explanations are not required.) Dec. 4, 2019: Issued 6,000 common shares to the consultants who formed the corporation, receiving cash of $180,000. Date Dec. Journal Entry Accounts Debit Credit