Spangler Corporation's charter allows it to issue 25,000 shares of $100 par preferred stock and 50,000 shares of $20 par common stock. The company had the following stock transactions during the past year: 1. Issued 10,000 shares of common stock to the corporate founders in exchange for a building valued at $150,000 and equipment valued at $75.000. 2. Sold 500 shares of preferred stock at $125 per share and 1,000 shares of common stock at par to an investor. 3. Sold 5.000 shares of common stock for $35 per share. 4. Issued 2.000 shares of common stock with a market value of $40 per share, and 750 shares of preferred stock with a market value of $145 per share, for a lump sum of $200.000. 5. Purchased at $25 per share, 2,000 shares of Spangler Corporation common stock. 6. Sold 1,000 shares of treasury stock at $30 per share. 7. Sold 1,000 shares of treasury stock at $18 per share. Instructions: Prepare journal entries for the transactions noted above. No other transactions have affected the stock accounts. Record all lump sum transactions using the proportional method and all treasury stock transactions using the cost method.
Spangler Corporation's charter allows it to issue 25,000 shares of $100 par preferred stock and 50,000 shares of $20 par common stock. The company had the following stock transactions during the past year: 1. Issued 10,000 shares of common stock to the corporate founders in exchange for a building valued at $150,000 and equipment valued at $75.000. 2. Sold 500 shares of preferred stock at $125 per share and 1,000 shares of common stock at par to an investor. 3. Sold 5.000 shares of common stock for $35 per share. 4. Issued 2.000 shares of common stock with a market value of $40 per share, and 750 shares of preferred stock with a market value of $145 per share, for a lump sum of $200.000. 5. Purchased at $25 per share, 2,000 shares of Spangler Corporation common stock. 6. Sold 1,000 shares of treasury stock at $30 per share. 7. Sold 1,000 shares of treasury stock at $18 per share. Instructions: Prepare journal entries for the transactions noted above. No other transactions have affected the stock accounts. Record all lump sum transactions using the proportional method and all treasury stock transactions using the cost method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Spangler Corporation's charter allows it to issue 25,000 shares of $100 par
had the following stock transactions during the past year:
1. Issued 10,000 shares of common stock to the corporate founders in
exchange for a building valued at $150,000 and equipment valued at
$75.000.
2. Sold 500 shares of preferred stock at $125 per share and 1,000 shares
of common stock at par to an investor.
3. Sold 5.000 shares of common stock for $35 per share.
4. Issued 2.000 shares of common stock with a market value of $40 per
share, and 750 shares of preferred stock with a market value of $145 per
share, for a lump sum of $200.000.
5. Purchased at $25 per share, 2,000 shares of Spangler Corporation
common stock.
6. Sold 1,000 shares of
7. Sold 1,000 shares of treasury stock at $18 per share.
Instructions:
Prepare
Transcribed Image Text:Spangler Corporation's charter allows it to issue 25,000 shares of $100 par
preferred stock and 50,000 shares of $20 par common stock. The company
had the following stock transactions during the past year:
1. Issued 10,000 shares of common stock to the corporate founders in
exchange for a building valued at $150,000 and equipment valued at
$75,000.
2. Sold 500 shares of preferred stock at $125 per share and 1,000 shares
of common stock at par to an investor.
3. Sold 5,000 shares of common stock for $35 per share.
4. Issued 2,000 shares of common stock with a market value of $40 per
share, and 750 shares of preferred stock with a market value of $145 per
share, for a lump sum of $200,000.
5. Purchased at $25 per share, 2,000 shares of Spangler Corporation
common stock.
6. Sold 1,000 shares of treasury stock at $30 per share.
7. Sold 1,000 shares of treasury stock at $18 per share.
Instructions:
Prepare journal entries for the transactions noted above. No other
transactions have affected the stock accounts. Record all lump sum
transactions using the proportional method and all treasury stock
transactions using the cost method.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.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