Accounting
27th Edition
ISBN: 9781337272094
Author: WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher: Cengage Learning,
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Chapter 13, Problem 13.7EX
Issuing stock
Willow Creek Nursery, with an authorization of 75,000 shares of
| Cash..................................................... | 3,780.000 | |
| Land..................................................... | 840,000 | |
| Buildings................................................. | 2,380,000 | |
| Preferred 1% Stock, $80 par............................... | 2,800,000 | |
| Paid In Capital in Excess of Par—Preferred Stock........... | 420,000 | |
| Common Stock. $30 par.................................. | 3,600,000 | |
| Paid In Capital in Excess of Par—Common Stock........... | 180,000 | |
| 7,000,000 | 7,000,000 |
All shares within each class of stock were sold at the same price. The preferred stock was issued in exchange for the land and buildings.
Journalize the two entries to record the transactions summarized in the trial balance.
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El Cemí Enterprises
Stockholders equity section presents the following balances for January 1st:
Common Stock, $8 par value (800,000) Shares authorized
500,000 shares issued......................................................................$5,600,000
Paid in Capital in Excess of Par-Common Stock.............................. $650,000
Retained earnings............................................................................. $8,120,000
Treasury stock at cost-Common (50,000 shares at cost)..................$650,000
Additional information:
Transactions during the year
January 3 - Paid cash dividens at $0.15 each common stock. The cash dividends were registered in last year declaration for $67,500.
March 20 - The company issued 80,000 common stock for $1,100,000.
May 5 - The company declared 3% of common stock dividend. The market stock rate is at $15 each share.
July 8 - Company sold all their Treasury stocks for $820,000
September 4 - Company issued the certificates for May…
Stockholders equity section presents the following balances for January 1st:
Common Stock, $8 par value (800,000) Shares authorized
500,000 shares issued......................................................................$5,600,000
Paid in Capital in Excess of Par-Common Stock.............................. $650,000
Retained earnings............................................................................. $8,120,000
Treasury stock at cost-Common (50,000 shares at cost)..................$650,000
Make the entry for this date:
May 5 - The company declared 3% of common stock dividends. The market rate price is at $15 per share.
On October 10, the stockholders’ equity section of Sherman Systems appears as follows. Common stock—$10 par value, 72,000 shares authorized, issued, and outstanding . . . . . . $ 720,000 Paid-in capital in excess of par value, common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216,000 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 864,000 Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,800,000 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,000 shares of its own common stock at $25 per share on October 11. b. Sold 1,000 treasury shares on November 1 for $31 cash per share. c. Sold all remaining treasury shares on November 25 for $20 cash per share. 2. Prepare the stockholders’ equity section after the October 11 treasury stock…
Chapter 13 Solutions
Accounting
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