Explanation Opening Balance: Opening Balance in Retained Earnings = $53,250 On Jan 1, 8,000 common shares for $1 per shares were issued. June 15 : No. of shares issued = 2,000 Par Value = $1 Stock Price = $20 per share Cash received = No . of shares issued × Stock Price Cash received = 2 , 000 × $ 20 = $40,000 Value of Common Stock issued = No . of shares issued × Par Value Value of Common Stock issued = 2 , 000 × $ 1 = $2,000 Additional Paid-in capital (common stock) = Cash received - Value of Common Stock issued Additional Paid-in capital (common stock) = $40,000 - $2,000 = $38,000 July 1: No. of shares issued = 3,000 Par Value = $50 Stock Price = $75 per share Cash received = No . of shares issued × Stock Price Cash received = 3 , 000 × $ 75 = $225,000 Value of Common Stock issued = No . of shares issued × Par Value Value of Common Stock issued = 3 , 000 × $ 50 = $150,000 Additional Paid-in capital (preferred stock) = Cash received - Value of Common Stock issued Additional Paid-in capital (preferred stock) = $225,000 - $150,000 = $75,000 Dividend Payable on preferred stock for 6 months = $ 150 , 000 × 8 % × 6 12 = $6,000 July 10: Repurchased shares are shown in equity capital as treasury stock. Treasury stock increases which decreases equity of the firm and cash also decreases as the amount is paid for repurchase of shares from market. Repurchased shares = 700 Stock Price = $16 Treasury Stock = Repurchased shares × Stock Price Treasury Stock = 700 × $16 = $11,200 August 5: Dividend of $25,000 was declared

4th Edition

ISBN: 9781337690881

Author: Jay Rich, Jeff Jones

Publisher: Cengage Learning

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Chapter 10, Problem 95.2C

To determine

Introduction:

Journal entries are recording of financial transactions in the journal book which is further used to prepare the ledger accounts. It is the first step of bookkeeping.

To prepare:

Journal entries.

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Chapter 10, Problem 95.1C

Chapter 11, Problem 1DQ

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Chapter 10 Solutions

Cornerstones of Financial Accounting

Ch. 10 - Prob. 1DQ Ch. 10 - 2. What does a share of stock represent?Ch. 10 - Prob. 3DQ Ch. 10 - Prob. 4DQ Ch. 10 - Prob. 5DQ Ch. 10 - Prob. 6DQ Ch. 10 - Prob. 7DQ Ch. 10 - Prob. 8DQ Ch. 10 - Prob. 9DQ Ch. 10 - Prob. 10DQ

Ch. 10 - 11. Describe how cumulative preferred stock...Ch. 10 - Prob. 12DQ Ch. 10 - 13. What balance sheet accounts are affected by...Ch. 10 - 14. What is the difference between par value and...Ch. 10 - Prob. 15DQ Ch. 10 - Prob. 16DQ Ch. 10 - Prob. 17DQ Ch. 10 - Prob. 18DQ Ch. 10 - Prob. 19DQ Ch. 10 - Prob. 20DQ Ch. 10 - Prob. 21DQ Ch. 10 - Prob. 22DQ Ch. 10 - Prob. 23DQ Ch. 10 - Prob. 24DQ Ch. 10 - Prob. 25DQ Ch. 10 - Prob. 26DQ Ch. 10 - Prob. 27DQ Ch. 10 - Prob. 28DQ Ch. 10 - Prob. 29DQ Ch. 10 - Prob. 30DQ Ch. 10 - Prob. 31DQ Ch. 10 - Prob. 32DQ Ch. 10 - Prob. 33DQ Ch. 10 - Prob. 34DQ Ch. 10 - Which of the following is not a component of...Ch. 10 - Which of the following statements is true? The...Ch. 10 - Authorized stock represents the: number of shares...Ch. 10 - Prob. 4MCQ Ch. 10 - Prob. 5MCQ Ch. 10 - Ames Corporation repurchases 10,000 shares of its...Ch. 10 - With regard to preferred stock, its stockholders...Ch. 10 - Prob. 8MCQ Ch. 10 - Prob. 9MCQ Ch. 10 - A company would repurchase its own stock for all...Ch. 10 - Prob. 11MCQ Ch. 10 - Prob. 12MCQ Ch. 10 - Prob. 13MCQ Ch. 10 - Prob. 14MCQ Ch. 10 - When a company declares a cash dividend, which of...Ch. 10 - Prob. 16MCQ Ch. 10 - Prob. 17MCQ Ch. 10 - The balance of the $2.50 par value Common Stock...Ch. 10 - When a company declares a 3-for-l stock split, the...Ch. 10 - Shea Company has 100,000 shares of 6%, S50 par...Ch. 10 - RVR Enterprises shows net income of $1 00,000 for...Ch. 10 - Comprehensive income: includes transactions that...Ch. 10 - Prob. 23MCQ Ch. 10 - Prob. 24MCQ Ch. 10 - Prob. 25CE Ch. 10 - Recording the Sale of Common Stock Plymouth...Ch. 10 - Calculating the Number of Shares Issued Castalia...Ch. 10 - Prob. 28CE Ch. 10 - Prob. 29CE Ch. 10 - Prob. 30CE Ch. 10 - Prob. 31CE Ch. 10 - Cash Dividends King Tut Corporation issued 19,000...Ch. 10 - Prob. 33CE Ch. 10 - Prob. 34CE Ch. 10 - Preferred and Common Stock Dividends Barstow...Ch. 10 - Preferred Stock Dividends Seashell Corporation has...Ch. 10 - Stockholder Profitability Ratios The following...Ch. 10 - Stockholder Payout Ratios The following...Ch. 10 - Prob. 39BE Ch. 10 - Recording the Sale of Common and Preferred Stock...Ch. 10 - Prob. 41BE Ch. 10 - Calculating the Number of Shares Issued Castanet...Ch. 10 - Prob. 43BE Ch. 10 - Accounting for Treasury Stock Paris Corporation...Ch. 10 - Treasury Stock Refer to the information for...Ch. 10 - Prob. 46BE Ch. 10 - Cash Dividends Cyprus Corporation issued 12,000...Ch. 10 - Prob. 48BE Ch. 10 - Augusta Corporation reported the following...Ch. 10 - Preferred and Common Stock Dividends Brookshed...Ch. 10 - Prob. 51BE Ch. 10 - Prob. 52BE Ch. 10 - Prob. 53BE Ch. 10 - Stockholder Payout Rations Super Duper Corporation...Ch. 10 - Prob. 55BE Ch. 10 - Prob. 56E Ch. 10 - Outstanding Stock Lars Corporation shows the...Ch. 10 - Capital Stock Refer to the information for Stahl...Ch. 10 - Preparation of Stockholders Equity Section Refer...Ch. 10 - Issuing Common Stock Carmean Products Inc. sold...Ch. 10 - Issuing and Repurchasing Stock Mohawk Company had...Ch. 10 - Prepare the Stockholders' Equity Section Renee...Ch. 10 - Prepare the Stockholders' Equity Section Wildcat...Ch. 10 - Prob. 64E Ch. 10 - Treasury Stock Transactions Garrett Inc. had no...Ch. 10 - Cash Dividends on Common Stock Berkwild Company is...Ch. 10 - Cash Dividends on Common and Preferred Stock Lemon...Ch. 10 - Prob. 68E Ch. 10 - Stock Dividends Crystal Corporation has the...Ch. 10 - Stock Dividend The balance sheet of Cohen...Ch. 10 - Prob. 71E Ch. 10 - Stock Dividends and Stock Splits The balance sheet...Ch. 10 - Preferred Dividends Eastern Inc.s equity includes...Ch. 10 - Cumulative Preferred Dividends Capital stock of...Ch. 10 - Retained Earnings Tigress Manufacturing had...Ch. 10 - Prob. 76E Ch. 10 - Prob. 77E Ch. 10 - Ratio Analysis Consider the following information....Ch. 10 - Ratio Analysis MJO Inc. has the following...Ch. 10 - Stockholders' Equity Terminology A list of terms...Ch. 10 - Prob. 81PSA Ch. 10 - Prob. 82PSA Ch. 10 - Treasury Stock Transactions Hansen Inc. engaged in...Ch. 10 - Statement of Stockholders' Equity At the end of...Ch. 10 - Common Dividends Fusion Payroll Service began 2019...Ch. 10 - Problem 10-86A Stock Dividends and Stock Splits...Ch. 10 - Prob. 87PSA Ch. 10 - Ratio Analysis Consider the following information...Ch. 10 - Prob. 81PSB Ch. 10 - Prob. 82PSB Ch. 10 - Treasury Stock Transactions Bentonite Adhesives...Ch. 10 - Statement of Stockholders' Equity At the end of...Ch. 10 - Common Dividends Thompson Payroll Service began in...Ch. 10 - Prob. 86PSB Ch. 10 - Prob. 87PSB Ch. 10 - Prob. 88PSB Ch. 10 - Prob. 89.1C Ch. 10 - Prob. 89.2C Ch. 10 - Prob. 90.1C Ch. 10 - Prob. 90.2C Ch. 10 - Prob. 91C Ch. 10 - Prob. 92.1C Ch. 10 - Prob. 92.2C Ch. 10 - Prob. 92.3C Ch. 10 - Prob. 92.4C Ch. 10 - Prob. 92.5C Ch. 10 - Prob. 93.1C Ch. 10 - Prob. 93.2C Ch. 10 - Prob. 93.3C Ch. 10 - Prob. 93.4C Ch. 10 - Prob. 93.5C Ch. 10 - Prob. 93.6C Ch. 10 - Prob. 94.1C Ch. 10 - Prob. 94.2C Ch. 10 - Prob. 94.3C Ch. 10 - Prob. 94.4C Ch. 10 - Prob. 94.5C Ch. 10 - Prob. 94.6C Ch. 10 - Prob. 95.1C Ch. 10 - Prob. 95.2C

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Journal entries are recording of financial transactions in the journal book which is further used to prepare the ledger accounts. It is the first step of bookkeeping. To prepare: Journal entries.

Solution Summary: The author explains that journal entries are recording of financial transactions in the journal book which is further used to prepare the ledger accounts.

Introduction: Journal entries are recording of financial transactions in the journal book which is further used to prepare the ledger accounts. It is the first step of bookkeeping. To prepare: Journal entries.

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Chapter 10 Solutions

Introduction:

Journal entries are recording of financial transactions in the journal book which is further used to prepare the ledger accounts. It is the first step of bookkeeping.

To prepare:

Journal entries.