Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of common shares. During January 2020, its first month of operations, the following selected transactions occurred:   Jan. 1   1,000 shares were issued to the organizers of the corporation. The total value of the shares was determined to be $12,700.   5   15,000 shares were sold to various shareholders for $14.20 each.   15   The board of directors declared a cash dividend of $0.82 per common share to shareholders of record on January 19, payable January 31.   20   4,000 shares were issued in exchange for land valued at $50,800. The shares were actively trading on this date at $12.20 per share.   31   Closed the Income Summary account, which showed a credit balance of $172,000.   31   Paid the dividends declared on January 15. Required: a. Journalize the above transactions. The Company does not use a Cash Dividends Account. b. Prepare the equity section of Westby’s balance sheet at January 31, 2020. c. What was the average issue price per common share? (Round your answer to 2 decimal places.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of common shares. During January 2020, its first month of operations, the following selected transactions occurred:
 

Jan. 1   1,000 shares were issued to the organizers of the corporation. The total value of the shares was determined to be $12,700.
  5   15,000 shares were sold to various shareholders for $14.20 each.
  15   The board of directors declared a cash dividend of $0.82 per common share to shareholders of record on January 19, payable January 31.
  20   4,000 shares were issued in exchange for land valued at $50,800. The shares were actively trading on this date at $12.20 per share.
  31   Closed the Income Summary account, which showed a credit balance of $172,000.
  31   Paid the dividends declared on January 15.


Required:
a. 
Journalize the above transactions. The Company does not use a Cash Dividends Account.

b. Prepare the equity section of Westby’s balance sheet at January 31, 2020.

c. What was the average issue price per common share? (Round your answer to 2 decimal places.)

Required:
a. Journalize the above transactions. The Company does not use a Cash Dividends Account.
View transaction list
:X:
>
1
Record the issuance of shares.
2
Record the issuance of shares.
3
Record the declared dividends.
4
Record the issuance of shares.
Record to close the income summary account.
Credit
6
Record the paid dividends.
Note :
journal entry has been entered
Record entry
Clear entry
View general journal
LO
Transcribed Image Text:Required: a. Journalize the above transactions. The Company does not use a Cash Dividends Account. View transaction list :X: > 1 Record the issuance of shares. 2 Record the issuance of shares. 3 Record the declared dividends. 4 Record the issuance of shares. Record to close the income summary account. Credit 6 Record the paid dividends. Note : journal entry has been entered Record entry Clear entry View general journal LO
b. Prepare the equity section of Westby's balance sheet at January 31, 2020.
WESTBY CORP.
Equity Section of the Balance Sheet
January 31, 2020
Total equity
c. What was the average issue price per common share? (Round your answer to 2 decimal places.)
Average issue price
per share
Transcribed Image Text:b. Prepare the equity section of Westby's balance sheet at January 31, 2020. WESTBY CORP. Equity Section of the Balance Sheet January 31, 2020 Total equity c. What was the average issue price per common share? (Round your answer to 2 decimal places.) Average issue price per share
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Consolidations
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.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education