Exercises%20CORRECTED[1]

Exercises%20CORRECTED[1] - Exercises Exercise 15-3 Entries...

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Exercise 15-3 Entries for stock issuance. On February 20, Adams Company issued for cash 5,000 shares of no-par common stock (with a stated value of $20) at $22, and on August 7 it issued for cash 2,000 shares of $50 par preferred stock at $52. (a) Give the entries for February 20 and August 7, assuming that the common stock is to be credited with the stated value. (b.) What is the total amount invested by all stockholders as of August 7. Exercise 15-4 Stock Subscriptions. On January 15, Chow Company received its charter authorizing 10,000 shares of $50 par common stock. On March 5, the corporation received subscriptions to 5,000 shares of stock at $60. Cash for one half of the subscription price accompanied the subscriptions. On June 5 the remaining half was received from all subscribers and the stock was issued (a.) Present entries to record the transactions of March 5. (b.) Present entries to record the transactions of June 5 (c.) By what amount did the corporation's stockholders equity increase on January 15, March 5, and June 5 ? (d.) Name two controlling accounts used in the transactions and identify the related subsidiary ledgers. Exercise 15-6 Corporate organization; stockholders equity section. Sanderson Products Inc. was organized on January 9 of the current year with an authorization of 10,000 shares of $11 cumulative preferred stock $100 par and 20,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations: Jan 9 Issued 20,000 shares of common stock at par for cash. Jan 9 Issued 950 shares of common stock to an attorney in payment of legal fees for organizing the corporation. Feb 4 Issued 20,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $140,000,20,000 and $45,000 respectively. Oct 15 Issued 2,000 shares of preferred stock at $96 for cash. (a.) Record the transactions (b.) Prepare the stockholders equity section of the balance sheet as of December 31. The end of the current year. The net income for the year amounted to $37,500. Exercise 15-7 Treasury stock transactions. On January 11 of the current year, Lang Company reacquired 1,000 shares of its common stock at $22 per share. On July 2,500 of the reacquired shares were sold at $25 per share. The remaining 500 shares were sold at $20 per share on December 19. (a.) Record the transactions of January 11, July 2, and December 19. (b.) What is the balance in Paid In Capital from sale of treasury stock on December 31 of the current year? (c.) Where will the balance in Paid In Capital from sale of treasury stock be recorded on the balance sheet? 1
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This note was uploaded on 10/30/2010 for the course BUSINESS ACC-101 taught by Professor Brooker during the Spring '10 term at Bunker Hill.

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Exercises%20CORRECTED[1] - Exercises Exercise 15-3 Entries...

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