2 Semester Cengage Now, Warren Accounting
26th Edition
ISBN: 9781305662308
Author: WARREN
Publisher: Cengage
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Chapter 13, Problem 13.12EX
A.
To determine
To prepare: The
B.
To determine
The balance in paid in capital from sale of treasury stock on December 31 of the current year.
C.
To determine
The balance in the treasury stock on December 31 of the current year.
D.
To determine
To describe: The way in which balance of treasury stock would be reported on the
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Treasury Stock Transactions
Lawn Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Lawn Spray Inc. reacquired 19,000 shares of its common stock at $36 per share. On June 14, 12,000
of the reacquired shares were sold at $39 per share, and on November 23, 4,600 of the reacquired shares were sold at $39.
a. Journalize the transactions of January 31, June 14, and November 23. For a compound transaction, if an amount box does not require an entry, leave it blank.
Jan. 31
June. 14
Nov. 23
b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
c. What is the balance in Treasury Stock on December 31 of the current year?
d. How will the balance in Treasury Stock be reported on the balance sheet?
a. Prepare journal entries
b. Assuming that the profit for the year amounted to P450,000, prepare the shareholders' equity section of the statement of financial position as at Dec. 31, 2018.
Gloria Detoya Corporation was authorized to issue 900,000 shares of 5%, $100 par value preference shares and 1.5 million shares of no- par, $5 stated value ordinary shares. The ff. transactions occurred during 2018:
Feb. 2) 24,000 ordinary shares were sold to a group of investors at $24 per share.
Feb 15) 5,500 preference share were issued to an individual in exchange for a parcel of land to be held for future development. The land has a fair market value of $795,000. The preference shares was not actively traded.
Apr. 30) 2,500 ordinary shares were issued to a lawyer in exchange for services rendered in forming the corporation. The stock was currently trading at $31 a share. All parties agreed that this represented the value of the lawyer's services.
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Entries for Selected Corporate Transactions
Bacalso Enterprises, Inc. manufactures bathroom fixtures. The shareholders' equity
accounts with balances as of Jan. 1, 2018 are as follows:
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authorized, 50,000 shares issued
P1,250,000
250,000
150,000
80,000
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80,000
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Appropriation for Plant Expansion
Appropriation for Treasury Stock
Retained Earnings
Treasury Stock, 2,500 shares, at cost
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Received donated land with a fair market value of P100,000,
Paid cash dividends of P1 per share on the ordinary shares. The
dividend had been properly recorded when declared on Dec. 30 of the
preceding fiscal year for P47,500.
Sold all of the treasury stock for P95,000.
Issued 6,000 ordinary shares for P240,000.
Declared a 2% share dividend on ordinary shares, to be capitalized at
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Issued the certificates for the dividend…
Chapter 13 Solutions
2 Semester Cengage Now, Warren Accounting
Ch. 13 - Of two corporations organized at approximately the...Ch. 13 - Prob. 2DQCh. 13 - A corporation with both preferred stock and common...Ch. 13 - An owner of 2,500 shares of Simmons Company common...Ch. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - The treasury stock in Discussion Question 7 is...Ch. 13 - What are the three classifications of restrictions...Ch. 13 - Indicate how prior period adjustments should he...Ch. 13 - What is the primary purpose of a stock split?
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