Chapter 12 Lecture Problems

Chapter 12 Lecture Problems - Chapter 12 Exercise 1 (A...

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Chapter 12 – Exercise 1 (A – January 1) Prepare journal entries for each of the following transactions. Part A (January 1) : Sold and issued 40,000 common shares for cash at $30 per share and issued 5,000 preferred shares for cash of $75 per share with a 8% cumulative dividend. Transaction Account debit credit 1/1/20A solution: Transaction Account debit credit 1/1/20A
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Chapter 12 – Exercise 1 (A – February 1) Part A (February 1) : Issued 5,000 common shares in exchange for a tract of land. Assume the shares were selling at $75 per share at the time of this transaction. Transaction Account debit credit 2/1/20A solution:
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Chapter 12 – Exercise 1 (A – June 1) Part A (June 1) : Purchased 7,500 common shares in the open market at $40 per share and subsequently cancelled the repurchased shares. Transaction Account debit credit 6/1/20A solution:
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(A – December 1) Part A (December 1) : Declared dividends totaling $100,000 (remember to allocate dividend to preferred and common shareholders). Transaction
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Chapter 12 Lecture Problems - Chapter 12 Exercise 1 (A...

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