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Windsor Corporation showed the following information on its financial statements on December 31, 2024: Preferred Shares, no par value, $6 cumulative, 400,000 shares authorized, 190, 000 shares issued and outstanding $19,000,000 Common Shares, no par value, unlimited shares authorized, 430,000 shares issued and outstanding $10, 750, 000 The following transactions occurred, in the order given, during 2025: (a) April 15: Received subscriptions and down payments for 100,000 common shares at $33 per share. The subscription contracts call for 50% of the subscription price to be paid upon receipt, and the remaining 50% to be paid on June 30. In the event of default on the subscriptions, the company will retain the down payment. (b) May 1: Issued 90,000 preferred shares at $125 per share. (c) June 30: Received payment for 70,000 of the subscribed common shares; the remaining 30,000 defaulted. Issued the share certificates for the appropriate number of shares. (d) August 5: Repurchased and cancelled 30,000 common shares at a cost of $20 per share. (e) September 15: Declared dividends for preferred shares (dividends had not been paid the previous year). Also declared $1.50 per share dividend for common shares. Both dividends are to be paid on November 1 to shareholders of record on October 1. (f) If the preferred shares had a $100 par value, what would be the journal entry for the May 1 issuance of preferred shares in part (b

Windsor Corporation showed the following information on its financial statements on December 31, 2024: Preferred Shares, no par value, $6 cumulative, 400,000 shares authorized, 190, 000 shares issued and outstanding $19,000,000 Common Shares, no par value, unlimited shares authorized, 430,000 shares issued and outstanding $10, 750, 000 The following transactions occurred, in the order given, during 2025: (a) April 15: Received subscriptions and down payments for 100,000 common shares at $33 per share. The subscription contracts call for 50% of the subscription price to be paid upon receipt, and the remaining 50% to be paid on June 30. In the event of default on the subscriptions, the company will retain the down payment. (b) May 1: Issued 90,000 preferred shares at $125 per share. (c) June 30: Received payment for 70,000 of the subscribed common shares; the remaining 30,000 defaulted. Issued the share certificates for the appropriate number of shares. (d) August 5: Repurchased and cancelled 30,000 common shares at a cost of $20 per share. (e) September 15: Declared dividends for preferred shares (dividends had not been paid the previous year). Also declared $1.50 per share dividend for common shares. Both dividends are to be paid on November 1 to shareholders of record on October 1. (f) If the preferred shares had a $100 par value, what would be the journal entry for the May 1 issuance of preferred shares in part (b

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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No. Account Titles and Explanation (a) Share Subscriptions Receivable (b) (c) (d) (e) (f) Common Shares Subscribed (To record sale of shares on a subscription basis) Cash Share Subscriptions Receivable (To record collection of down payment) Cash Share Subscriptions Receivable Cash Share Subscriptions Receivable (To record receipt of cash for the final installment on subscribed shares) Common Shares Subscribed Share Subscriptions Receivable (To record default on subscribed shares) Common Shares Share Subscriptions Receivable (To record issuance of common shares for those subscribed and paid for) Common Shares (To record dividend declared) (To record dividend paid) Debit 825000 825000 11250000 1155000 495000 990000 600000 Credit 825000 825000 1155000 990000 495000 495000
Transcribed Image Text:No. Account Titles and Explanation (a) Share Subscriptions Receivable (b) (c) (d) (e) (f) Common Shares Subscribed (To record sale of shares on a subscription basis) Cash Share Subscriptions Receivable (To record collection of down payment) Cash Share Subscriptions Receivable Cash Share Subscriptions Receivable (To record receipt of cash for the final installment on subscribed shares) Common Shares Subscribed Share Subscriptions Receivable (To record default on subscribed shares) Common Shares Share Subscriptions Receivable (To record issuance of common shares for those subscribed and paid for) Common Shares (To record dividend declared) (To record dividend paid) Debit 825000 825000 11250000 1155000 495000 990000 600000 Credit 825000 825000 1155000 990000 495000 495000
Windsor Corporation showed the following information on its financial statements on December 31, 2024: Preferred Shares, no par value, $6 cumulative, 400, 000 shares authorized, 190,000 shares issued and outstanding $19,000,000 Common Shares, no par value, unlimited shares authorized, 430,000 shares issued and outstanding $10, 750, 000 The following transactions occurred, in the order given, during 2025: (a) April 15: Received subscriptions and down payments for 100,000 common shares at $33 per share. The subscription contracts call for 50% of the subscription price to be paid upon receipt, and the remaining 50% to be paid on June 30. In the event of default on the subscriptions, the company will retain the down payment. (b) May 1: Issued 90,000 preferred shares at $125 per share. (c) June 30: Received payment for 70,000 of the subscribed common shares; the remaining 30, 000 defaulted. Issued the share certificates for the appropriate number of shares. (d) August 5: Repurchased and cancelled 30,000 common shares at a cost of $20 per share. (e) September 15: Declared dividends for preferred shares (dividends had not been paid the previous year). Also declared $1.50 per share dividend for common shares. Both dividends are to be paid on November 1 to shareholders of record on October 1. (f) If the preferred shares had a $100 par value, what would be the journal entry for the May 1 issuance of preferred shares in part (b )? No. Account Titles and Explanation Debit Credit (a) Share Subscriptions Receivable (To record sale of shares on a subscription basis) (To record collection of down payment) (b) (c) Share Subscriptions Receivable 11250000 longleftarrow ( To record sale of shares on a subscription basis) (To record receipt of cash for the final installment on subscribed shares) (To record default on subscribed shares) (To record issuance of common shares for those subscribed and paid for) (d) (e) (To record dividend declared) (To record dividend paid) (f)COMPLETE ALL JOURNAL ENTRIES
Transcribed Image Text:Windsor Corporation showed the following information on its financial statements on December 31, 2024: Preferred Shares, no par value, $6 cumulative, 400, 000 shares authorized, 190,000 shares issued and outstanding $19,000,000 Common Shares, no par value, unlimited shares authorized, 430,000 shares issued and outstanding $10, 750, 000 The following transactions occurred, in the order given, during 2025: (a) April 15: Received subscriptions and down payments for 100,000 common shares at $33 per share. The subscription contracts call for 50% of the subscription price to be paid upon receipt, and the remaining 50% to be paid on June 30. In the event of default on the subscriptions, the company will retain the down payment. (b) May 1: Issued 90,000 preferred shares at $125 per share. (c) June 30: Received payment for 70,000 of the subscribed common shares; the remaining 30, 000 defaulted. Issued the share certificates for the appropriate number of shares. (d) August 5: Repurchased and cancelled 30,000 common shares at a cost of $20 per share. (e) September 15: Declared dividends for preferred shares (dividends had not been paid the previous year). Also declared $1.50 per share dividend for common shares. Both dividends are to be paid on November 1 to shareholders of record on October 1. (f) If the preferred shares had a $100 par value, what would be the journal entry for the May 1 issuance of preferred shares in part (b )? No. Account Titles and Explanation Debit Credit (a) Share Subscriptions Receivable (To record sale of shares on a subscription basis) (To record collection of down payment) (b) (c) Share Subscriptions Receivable 11250000 longleftarrow ( To record sale of shares on a subscription basis) (To record receipt of cash for the final installment on subscribed shares) (To record default on subscribed shares) (To record issuance of common shares for those subscribed and paid for) (d) (e) (To record dividend declared) (To record dividend paid) (f)COMPLETE ALL JOURNAL ENTRIES
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