A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account. The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

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Answer 1

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Chapter 11, Problem 4QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

b

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record ACompany’s issuance of 63,000 shares for exchange of land valued at $1,827,000.

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ht = ences X On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash withdrawals by owner Consulting revenue Salaries expense Cash $ 8,450 Accounts receivable 16,950 Office supplies 4,080 Rent expense Land 46,020 Office equipment 18,860 Telephone expense Accounts payable 9,280 Owner investments 84,920 Miscellaneous expenses $ 2,930 16,950 4,420 7,900 860 680 Exercise 1-18 (Algo) Preparing an income statement LO P2 Using the above information prepare a December income statement for the business. ERNST CONSULTING Income Statement Revenues Rent expense Salaries expense Telephone expense Total revenues $ 4,420 7,900 860 $ SA Assets Cash 8,450 Accounts receivable 16,950 Office supplies 4,080 Land 46,020 Office equipment 18,860 navable 9,280 13,180 5 11 of 14 Next >

Equipment was acquired at the beginning of the year at a cost of $77,220. The equipment was depreciated using the straight-line method based upon an estimated useful life of 6 years and an estimated residual value of $7,560. P1 What was the depreciation expense for the first year? _______ P2 Assuming the equipment was sold at the end of the second year for $58,320, determine the gain or loss on sale of the equipment. $_______________ P3 Journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. 1. ____ Debit / Credit 2.____ Debit / Credit 3.____ Debit / Credit 4.____ Debit / Credit

Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $84,920 in assets to launch the business. On December 31, the company's records show the following items and amounts. Cash Accounts receivable Office supplies Land Office equipment Accounts payable Owner investments $ 8,450 Cash withdrawals by owner 16,950 4,080 Rent expense Consulting revenue Salaries expense 18,860 Telephone expense Miscellaneous expenses 46,020 9,280 84,920 $ 2,930 16,950 4,420 7,900 860 680 Check my work Exercise 1-21 (Algo) Preparing a statement of cash flows LO P2 Also assume the following: a. The owner's initial investment consists of $38,900 cash and $46,020 in land. b. The company's $18,860 equipment purchase is paid in cash. c. Cash paid to employees is $2,700. The accounts payable balance of $9,280 consists of the $4,080 office supplies…

Answer 2

Question

Chapter 11, Problem 4QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

b

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record ACompany’s issuance of 63,000 shares for exchange of land valued at $1,827,000.

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Answer 3

Question

Chapter 11, Problem 4QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

b

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record ACompany’s issuance of 63,000 shares for exchange of land valued at $1,827,000.

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Answer 4

Question

Chapter 11, Problem 4QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

b

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record ACompany’s issuance of 63,000 shares for exchange of land valued at $1,827,000.

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Answer 5

Chapter 11, Problem 4QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

b

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record ACompany’s issuance of 63,000 shares for exchange of land valued at $1,827,000.

Answer 6

Chapter 11, Problem 4QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

Answer 7

Chapter 11, Problem 4QS

a

To determine

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

Answer 8

b

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record ACompany’s issuance of 63,000 shares for exchange of land valued at $1,827,000.

Answer 9

b

To determine

Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.

The journal entry to record ACompany’s issuance of 63,000 shares for exchange of land valued at $1,827,000.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 11 - Prob. 1MCQ Ch. 11 - Prob. 2MCQ Ch. 11 - Prob. 3MCQ Ch. 11 - Prob. 4MCQ Ch. 11 - Prob. 5MCQ Ch. 11 - Prob. 1DQ Ch. 11 - Prob. 2DQ Ch. 11 - Prob. 3DQ Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ

A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account. The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

Solution Summary: The author explains that a corporation may issue shares at par or at the price more than the par value, but the issuance of common stock affects only paid-in capital and capital account.

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Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

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Chapter 11 Solutions

A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account. The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

Solution Summary: The author explains that a corporation may issue shares at par or at the price more than the par value, but the issuance of common stock affects only paid-in capital and capital account.

Concept explainers

Videos

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account. The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.

Want to see the full answer?

Chapter 11 Solutions

Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.

The journal entry to record A Company’s issuance of 63,000 shares at $29 per share.