Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 13, Problem 2PB
To determine
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Corporation Accounting
The owners are desirous of comparing serval financial transactions and possible outcomes to assist in guiding their decision-making process. They assume that the company will be formed on January 1, 2020. In addition, E&B Comic Bookstore Company’s charter will authorize 1,200,000 shares of common stock (to be divided into two classes (700,000 shares class A -voting rights and 500,000 shares class B -nonvoting rights) and 400,000, $X par value (see info below), 5% cumulative preferred stock. They have asked each student from your accounting course to prepare the company’s journal entries and statement of owner’s equity based on the following information.
Issued 60% shares of class A common stock. Stock has par value of 48 per share and was issued at $ 105 per share
2. Issued 60% shares of no-par class B stock at 98
3. Issued 20% shares of preferred stock at par value at $168
4. Exchanged 40% shares of class A common stock for…
The articles of incorporation for Peahen Corp. authorize the company to
issue 100,000 $6 preferred shares and 500,000 common shares. During
first year of operations, Peahen Corp. completed the following
selected transactions:
(Click the icon to view the transactions.)
Required
1. Record the transactions in the general journal.
2. Prepare the shareholders' equity section of the Peahen Corp. balance
sheet at November 30, 2020.
Requirement 1. Record the transactions in the journal. (Record debits first,
then credits. Explanations are not required.)
Dec. 4, 2019: Issued 6,000 common shares to the consultants who formed
the corporation, receiving cash of $180,000.
Date
Dec.
Journal Entry
Accounts
Debit
Credit
The cooperative operates its plan according to a five-year base period. Suppose the board of directors
has determined that the cooperative must have an additional $300 of equity capital to meet its financial
requirements during the next year. The balance of each member's equity account is shown in column
2 of the table. Patronage attributable to each member during the five-year base period is shown in
column 3.
MEMBER Beginning
Patronage during
last five years
Equity
A
1000
180
В
3000
300
3500
120
7500
600
Required : Calculate The adjustment to be made in each member's equity account!
Equity adjustment calculation
Adjusted
Equity
Requirement
Share of Total
MEMBER Beginning
Equity
Patronage during
last five years
Equity
Adjustment
Cooperative
patronage
A
1000
180
B
3000
300
C
3500
120
7500
600
Chapter 13 Solutions
Financial Accounting
Ch. 13 - Of two corporations organized at approximately the...Ch. 13 - A stockbroker advises a client to buy preferred...Ch. 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 - What is the primary purpose of a stock split?Ch. 13 - A corporation reacquires 60,000 shares of its own...Ch. 13 - The treasury stock in Discussion Question 7 is...Ch. 13 - What are the three classifications of restrictions...Ch. 13 - Prob. 10DQ
Ch. 13 - Dividends per share Reinhardt Furniture Company...Ch. 13 - Prob. 1PEBCh. 13 - Entries for issuing stock On May 23, Stoltz Realty...Ch. 13 - Entries for issuing stock On January 22, Zentric...Ch. 13 - Entries for cash dividends The declaration,...Ch. 13 - Entries for cash dividends The declaration,...Ch. 13 - Entries for stock dividends Pro-Builders...Ch. 13 - Entries for stock dividends Antique Buggy...Ch. 13 - Prob. 5PEACh. 13 - Prob. 5PEBCh. 13 - Prob. 6PEACh. 13 - Prob. 6PEBCh. 13 - Prob. 7PEACh. 13 - Prob. 7PEBCh. 13 - Prob. 8PEACh. 13 - Prob. 8PEBCh. 13 - Dividends per share Imaging Inc., a developer of...Ch. 13 - Dividends per share Lightfoot Inc., a software...Ch. 13 - Entries for issuing par stock On October 31,...Ch. 13 - Entries for issuing no-par stock On February 12,...Ch. 13 - Issuing stock for assets other than cash On April...Ch. 13 - Prob. 6ECh. 13 - Issuing stock Willow Creek Nursery, with an...Ch. 13 - Issuing stock Work Place Products Inc., a...Ch. 13 - Entries for cash dividends The declaration,...Ch. 13 - Entries for stock dividends Senior Life Co. is an...Ch. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Selected dividend transactions, stock split...Ch. 13 - Treasury stock transactions Lava Lake Inc. bottles...Ch. 13 - Treasury stock transactions Lawn Spray Inc....Ch. 13 - Treasury stock transactions Biscayne Bay Water...Ch. 13 - Reporting paid-in capital The following accounts...Ch. 13 - Stockholders Equity section of balance sheet The...Ch. 13 - Stockholders Equity section of balance sheet...Ch. 13 - Retained earnings statement Sumter Pumps...Ch. 13 - Stockholders Equity section of balance sheet List...Ch. 13 - Prob. 22ECh. 13 - EPS Junkyard Arts, Inc., had earnings of 316,000...Ch. 13 - EPS Pacific Gas and Electric Company is a large...Ch. 13 - EPS Caterpillar Inc. and Deere Company are two...Ch. 13 - Dividends on preferred and common stock Pecan...Ch. 13 - Stock transactions for corporate expansion On...Ch. 13 - Selected stock transactions The following selected...Ch. 13 - Prob. 4PACh. 13 - Entries for selected corporate transactions...Ch. 13 - Dividends on preferred and common stock Yosemite...Ch. 13 - Prob. 2PBCh. 13 - Selected stock transactions Diamondback Welding ...Ch. 13 - Entries for selected corporate transactions Nav-Go...Ch. 13 - Prob. 5PBCh. 13 - Ethics in Action Tommy Gunn is a division manager...Ch. 13 - Prob. 2CPCh. 13 - Prob. 4CPCh. 13 - Prob. 5CPCh. 13 - Issuing stock Epstein Engineering Inc. began...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- On December 1 of the current year, the following accounts and their balances appear in the ledger of Latte Corp., a coffee processor: Preferred 2% Stock, $50 par (250,000 shares authorized, 80,000 shares issued) .... Paid-In Capital in Excess of Par-Preferred Stock $ 4,000,000 560,000 Common Stock, $35 par (1,000,000 shares authorized, 400,000 shares issued)... 14,000,000 Paid-In Capital in Excess of Par-Common Stock. Retained Earnings..... 1,200,000 180,000,000 At the annual stockholders' meeting on March 31, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $11,000,000. (Continued)arrow_forwardYard Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Yard Spray Inc. reacquired 19,600 shares of its common stock at $19 per share. On June 14, 13,700 of the reacquired shares were sold at $25 per share, and on November 23, 4,700 of the reacquired shares were sold at $20. Required: a. Journalize the transactions of January 31, June 14, and November 23. b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? What is the balance in Treasury Stock on December 31 of the current year? How will the balance in Treasury Stock be reported on the balance sheet?arrow_forwardplease avoid images in solutions thank youarrow_forward
- Prepare the journal entries to record the following non-strategic investment transactions of Ace Investment Corporation that occurred during the year 2020. April 16 Bought 3,000 common shares of Aby Motors Co. at $22.50 per share August 1 The Board of Directors of Aby Motors Co. declared a dividend of $1.25 per common share to shareholders of record of August 10, payable on August 15 August 15 Received the Aby Motors Co. dividend October 20` Sold the Aby Motors Co. shares at $27.00arrow_forwardLawn Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Lawn Spray Inc. reacquired 19,100 shares of its common stock at $20 per share. On June 14, 13,700 of the reacquired shares were sold at $25 per share, and on November 23, 4,000 of the reacquired shares were sold at $21. Required: A. Journalize the transactions of January 31, June 14, and November 23. Refer to the Chart of Accounts for exact wording of account titles. 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? CHART OF ACCOUNTSLawn Spray Inc.General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance…arrow_forwardSubject - account Please help me. Thankyou.arrow_forward
- Yard Spray Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On January 31 of the current year, Yard Spray Ino reacquired 19,700 shares of its common stock at $19 per share. On June 14, 13,400 of the reacquired shares were sold at $25 per share, and on November 23, 5,300 of the reacquired shares were sold at $20. Required: a. Journalize the transactions of January 31, June 14, and November 23. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. c. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year? b. 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?arrow_forward4. The cooperative operates its plan according to a five-year base period. Suppose the board of directors has determined that the cooperative must have an additional $300 of equity capital to meet its financial requirements during the next year. The balance of each member's equity account is shown in column 2 of the table. Patronage attributable to each member during the five-year base period is shown in column 3. MEMBER Beginning Patronage during last five years Equity A 1000 180 3000 300 C 3500 120 7500 600 Required : Calculate The adjustment to be made in each member's equity account !arrow_forwardplease help mearrow_forward
- United Resources Company obtained a charter from the state in January of this year. The charter authorized 200,000 shares of common stock with a par value of $3. During the year, the company earned $475,000. Also during the year, the following selected transactions occurred in the order given: a. Sold 84,000 shares of the common stock in an initial public offering for $13 per share. b. Repurchased 26,000 shares of the previously issued shares for $16 per share and is holding them as treasury stock. c. Resold 6,000 shares of treasury stock for $19 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated with a minus sign. Stockholders' equity: Contributed capital: Common stock UNITED RESOURCES COMPANY Additional paid-in capital Balance Sheet (Partial) At December 31, This year Total contributed capital $ 84,000 $ 84,000 Retained earnings Treasury stockarrow_forwardSagararrow_forwardUnited Resources Company obtained a charter from the state in January of this year. The charter authorized 211,000 shares of common stock with a par value of $1. During the year, the company earned $477,000. Also during the year, the following selected transactions occurred in the order given: a. Sold 98,000 shares of the common stock in an initial public offering for $18 per share. b. Repurchased 29,000 shares of the previously issued shares for $21 per share and is holding them as treasury stock. c. Resold 4,000 shares of treasury stock for $24 per share. Required: Prepare the stockholders' equity section of the balance sheet at the end of the year. Note: Amounts to be deducted should be indicated with a minus sign. Stockholders' equity: Contributed capital: UNITED RESOURCES COMPANY Balance Sheet (Partial) At December 31, This year Total contributed capital Total stockholders' equityarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,