The ABC Corporation was formed on January 1, 2017. The three initial owners each invested $400,000 cash and each received 40,000 shares of $1 par value common stock. Below are selected transactions that were completed during January 2017. 1. Issue shares of common stock to the owners. 2. Borrowed $320,000 on a one-year note payable. 3. Purchased land by signing a $280,000 note payable. 4. Paid $40,000 of accounts payable. 5. Purchased two service vehicles for cash at a cost of $96,000 each. 6. Purchased $8,000 of supplies on credit. Question: Prepare the journal entries on ABC's books for each transaction.
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- When Jon Batiste incorporated, his corporation issued 150 shares from treasury for $12 per share to him. In 2017, the Jon sold half of his shares to another individual for $14 per share. In 2018, an employee purchased 20 shares from treasury for $16 per share. All shares are of the same class. Which one of the following amounts represents the per-share paid-up capital? $13.33 $11 $13.67 $15Bloom Company was incorporated on January 1, 2018, with P500,000 from the issuance if share capital andborrowed funds of P150,000. During the first year of operations, net income was P250,000. On December 15,Bloom paid a P50,000 cash dividend.No additional activities affected shareholders’ equity in 2018. On December 31, 2018, Bloom’s liabilities had increased to P180,000.In Bloom’s December 31, 2018 statement of financial position, what amount should be reported as total assets?a. P650,000b. P930,000c. P880,000d. P680,000she Company was organized on January 1, 2015 with authorized share capital of 100,000 shares of P20 par value. During the year, the entity had the following transactions affecting shareholders’ equity: January 10: Issued 25,000 shares at P22 a share. March 25 : Issued 1,000 shares for legal services when the fair value was P24 a share. September 30: Issued 5,000 shares for a tract of land when the fair value was P26 a share. What amount should be reported as share premium on December 31, 2015?
- On 1 July 2017, a shareholder contributes $20,000 into Wiley Ltd by acquiring 10,000 shares. Wiley immediately uses the raised capital to purchase an equipment for $15,000. What is the journal entry recorded by the company on 1 July 2017?C. Prepare the journal entries for this transactions Peterson Company issued 4,000 shares of preferred stock for $240,000.The stock has a par value of $60 per share. On December 2, 2014, Ewell Company purchases a piece of land from the original owner. In payment for the land, Ewell Company issues 8,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $400,000. Chaney Corporation issued 20,000 shares of common stock on January 1, 2014. The stock has par value of $1.00 per share and was sold at $30 per share. Bradley Corporation issued 10,000 shares of common stock on January 1, 2013. The stock has par value of $0.01 per share and was sold at $25 per share.An investor company purchased 17,000 of the 50,000 outstanding shares of the investee company's common stock for $338,000 on January 1, 2021. During 2021, the investee company declared dividends of $33,000 and reported earnings for the year of $158,000. If the investor company uses the equity method of accounting for its investment in the investee company, it should report Dividend Revenue from the investee for 2021 in the amount of $_______. (If there is no Dividend Revenue, then enter 0. Do not round your answer for any part of the computation.)
- Ayayai Ltd. was incorporated on January 1, 2024. During the year the company entered into the following transactions: Jan. 5 Issued 49,000 common shares for $2.50 per share. Jan. 20 Issued 2.700 common shares to settle legal expenses. The value of the legal expenses was $8,818. Feb. 10 Issued 11,000 preferred shares for $50.00 per share. Aug 12 Repurchased 14,700 common shares for $2.40 per share. Oct. 1 Issued 5,300 common shares for $2.25 per share. Dec. 15 Repurchased 22,000 common shares for $2.70 per share. Record the above transactions. (Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round per share calculations to 2 decimal places, eg. 5.75 and final answers to 0 decimal places, eg 5,275)Agustin Company has the following transactions relating to its investments during 2022. January 5 - Acquired 10,000 shares of Abalos Company for P1,000,000 paying additional P20,000 for brokerage fee and another P5,000 for commission. Received dividends from Abalos declared January 2, 2022 to stockholders of record January 10, 2022, P20,000. How much should the investment account be debited if the shares are held for trading?Sarasota Ltd. was incorporated on January 1, 2024. During the year the company entered into the following transactions: Jan. 5 Issued 58,000 common shares for $2.50 per share. Jan. 20 Issued 3,000 common shares to settle legal expenses. The value of the legal expenses was $9,940. Feb. 10 Issued 15,000 preferred shares for $35.00 per share. Aug. 12 Repurchased 17,400 common shares for $2.40 per share. Oct. 1 Issued 4,100 common shares for $2.25 per share. Dec. 15 Repurchased 21,000 common shares for $2.72 per share. Record the above transactions. (Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries. Round per share calculations to 2 decimal places, e.g. 5.75 and final answers to 0 decimal places, e.g. 5,275.) Date Jan, 5 Jan 20 # Account…
- An investor company purchased 42,000 of the 100,000 outstanding shares of the investee company's common stock for $382,000 on January 1, 2021. During 2021, the investee company declared dividends of $47,000 and reported earnings for the year of $194,000. If the investor company uses the equity method of accounting for its investment in the investee company, its Equity Investment in the investee company account at December 31, 2021 should be $____________. (Do not round your answer for any part of the computation.)Pico Company was organized on January 1, 2015 with authorized capital of 100,000 shares of P200 par value. During 2015, Pico had the following transactions affecting stockholders' equity: Issued 25,000 shares at P220 a share January 10 March 25 Issued 1,000 shares for legal services when the fair value was P240 a share September 30 Issued 5,000 shares for a tract of land when the fair value was P260 a share. What amount should Pico report as additional paid in capital at December 31, 2015? O A. 840,000 O B. 800,000 O C. 540,000 O D. 500,000Sunny Co purchased 20,000 shares in Peter Co on 1 August 2020 at a cost of $6.0 each. Transaction costs on the purchase amounted to $2,000. At the year-end 30 September 2021, these shares are now worth $7.50 each. What is the gain to be recognized for the year ended 30 Sep 2021 and where it will be recorded according to two cases: (1) Shares held for sales (2) Shares held to collect contractual cash flows and sell them.