Chpt_15_Solutions - EXERCISE 15-2 (15–20 minutes) Jan. 10...

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Unformatted text preview: EXERCISE 15-2 (15–20 minutes) Jan. 10 Cash (80,000 X $5)......................................... 400,000 Common Stock (80,000 X $1)................. 80,000 Paid-in Capital in Excess of Stated Value—Common Stock....................... 320,000 (80,000 X $4) Mar. 1 Cash (5,000 X $108)....................................... 540,000 Preferred Stock (5,000 X $100)............... 500,000 Paid-in Capital in Excess of Par Value—Preferred Stock....................... 40,000 (5,000 X $8) April 1 Land................................................................. 80,000 Common Stock (24,000 X $1)................. 24,000 Paid-in Capital in Excess of Stated Value—Common Stock....................... 56,000 ($80,000 – $24,000) May 1 Cash (80,000 X $7)......................................... 560,000 Common Stock (80,000 X $1)................. 80,000 Paid-in Capital in Excess of Stated Value—Common Stock....................... 480,000 (80,000 X $6) Aug. 1 Organization Expense................................... 50,000 Common Stock (10,000 X $1)................. 10,000 Paid-in Capital in Excess of Stated Value—Common Stock....................... 40,000 ($50,000 – $10,000) EXERCISE 15-2 (Continued) Sept. 1 Cash (10,000 X $9)......................................... 90,000 Common Stock (10,000 X $1)................. 10,000 Paid-in Capital in Excess of Stated Value—Common Stock....................... 80,000 (10,000 X $8) Nov. 1 Cash (1,000 X $112)....................................... 112,000 Preferred Stock (1,000 X $100)............... 100,000 Paid-in Capital in Excess of Par Value—Preferred Stock....................... 12,000 (1,000 X $12) PROBLEM 15-4-1- Cash...................................................................................... 10,000 Discount on Bonds Payable.............................................. 106 Bonds Payable............................................................. 10,000 Preferred Stock............................................................ 50 Paid-in Capital in Excess of Par—Preferred Stock ($106 – $50)................................................... 56-2- Machinery (500 X $15)......................................................... 7,500 Common Stock............................................................ 5,000 Paid-in Capital in Excess of Par—Common Stock......................................................................... 2,500 (Assuming the stock is regularly traded, the value of the stock would be used.)-3- Cash...................................................................................... 11,300 Preferred Stock............................................................Preferred Stock....
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This note was uploaded on 11/12/2011 for the course ACCT 2015 taught by Professor Dr,moore during the Spring '10 term at University of the West Indies at Mona.

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Chpt_15_Solutions - EXERCISE 15-2 (15–20 minutes) Jan. 10...

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