The following transactions occurred in the order given, during 2023 la) 1210 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the company at a price of $8 per share. According to the subscription contracts a payment of 521 per subscription was required at the time the subscriptions were sold B As per the subscription contracts, the second payment was for the balance of the subscription price. Of the 1.210 subscribers, 120 defaulted and did not make this second payment. The subscription contracts specify that in the event of default, the first payment will not be refunded to defaulting subscribers Also at this time common shares are issued to subscribers that have fully paid on the contract Coronado repurchased and cancelled 62.000 common shares at a cost of $4 per share Acash dividend of $0.45 per share was declared. The date of record was after all of the events above
The following transactions occurred in the order given, during 2023 la) 1210 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the company at a price of $8 per share. According to the subscription contracts a payment of 521 per subscription was required at the time the subscriptions were sold B As per the subscription contracts, the second payment was for the balance of the subscription price. Of the 1.210 subscribers, 120 defaulted and did not make this second payment. The subscription contracts specify that in the event of default, the first payment will not be refunded to defaulting subscribers Also at this time common shares are issued to subscribers that have fully paid on the contract Coronado repurchased and cancelled 62.000 common shares at a cost of $4 per share Acash dividend of $0.45 per share was declared. The date of record was after all of the events above
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
240.
Subject : - Accounting
Transcribed Image Text:Coronado Corporation had the following shareholders equity on December 31, 2022
Common shares, 1,000,000 shares authorized, issued and outstanding
Contributed surplus (Common Shared
Retained earnings
Total shareholders equity
(a)
(0)
The following transactions occurred in the order given, during 2023
1.210 subscriptions were sold for common shares. Each subscription entitled the purchaser to purchase 10 shares in the
company at a price of 58 per share. According to the subscription contracts a payment of $21 per subscription was required
at the time the subscriptions were sold
(c)
640
(e)
(a)
(b)
k
M
Prepare the journal entries to record the above transactions for Coronado Corporation for 2023 (Round average share price to 2
decimal places for your calculations, eg 52.75 and final answers to 0 decimal places, eg 5.275. List all debit entries before credit entries. 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 for the amounts)
No Accounts Titles and Explanation
$6.000.000
As per the subscription contracts, the second payment was for the balance of the subscription price. Of the 1.210
subscribers, 120 defaulted and did not make this second payment.
(To record sale of shares on a subscription basis)
66.000
The subscription contracts specify that, in the event of default, the first payment will not be refunded to defaulting
subscribers. Also, at this time, common shares are issued to subscribers that have fully paid on the contract.
Coronado repurchased and cancelled 62,000 common shares at a cost of $4 per share
A cash dividend of $0.45 per share was declared. The date of record was after all of the events above
(To record collection of down payment)
11,200.000
$17.286.000
(To record forfeit of payment from defaulting subscribers)
(to record issuance of shares)
Debit
Credit
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