Tunic Corporation was organized on April 1, with an authorization of 25,000 shares of six percent,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tunic Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred: Apr. 1 Issued 82,000 shares of common stock at $17 cash per share. 3 Issued 2,200 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $33,000. 8 Issued 5,000 shares of common stock in exchange for equipment with a fair market value of $50,000. 20 Issued 8,000 shares of preferred stock for cash at $55 per share. Required a. Prepare journal entries to record the above transactions. General Journal Date Apr.01 Cash Common Stock Paid-in-Capital in Excess of Par Value - Common Stock Issued shares of common stock. Apr.03 Organization Costs Common Stock Pald-In-Capital In Excess of Par Value - Common Stock Issued common stock for organization costs. Apr.08 Equipment Description Common Stock Apr 20 Cash # + Debit ✓$ 1,394,000 ✓ S ✓ 0✔ 0 Paid in Capital Preferred Stock Common Stock Additional Paid-in-Capital Paid-in-Capital in Excess of Par value - Preferred Stock Paid-in-Capital in Excess of Par value - Common Stock Total Paid-in-Capital + ✓ Retained Earnings + ✓ Total Stockholders' Equity ◆ V + V V Paid-in-Capital in Excess of Par Value - Common Stock ✔ Issued common stock for equipment. ✔5 ✔ ✔ ✔ Preferred Stock Paid-in-Capital in Excess of Par Value Preferred Stock ✔ Issued shares of preferred stock. V 0x 0 x $ 0x 0 x 0x 0✓ 0✓ $ 0 x 0 x 0✓ 0 b. Prepare the stockholders' equity section of the balance sheet at April 30. Assume that the net income for April is $49,000. Stockholders' Equity 0x Credit 0 x 0x 0x 0x 0✔ 400,000 * 22.000 x 0✔ 0x 0 x 0 0x 0x 0✔ 0 x 0x Tunic Corporation was organized on April 1, with an authorization of 25,000 shares of six percent, $50 par value preferred stock and 200,000 shares of $5 par value common stock. During April, the following transactions affecting stockholders' equity occurred: Apr. 1 Issued 82,000 shares of common stock at $17 cash per share. 3 Issued 2,200 shares of common stock to attorneys and promoters in exchange for their services in organizing the corporation. The services were valued at $33,000. 8 Issued 5,000 shares of common stock in exchange for equipment with a fair market value of $50,000. 20 Issued 8,000 shares of preferred stock for cash at $55 per share. Required a. Prepare journal entries to record the above transactions. General Journal Date Apr.01 Cash Common Stock Paid-in-Capital in Excess of Par Value - Common Stock Issued shares of common stock. Apr.03 Organization Costs Common Stock Pald-In-Capital In Excess of Par Value - Common Stock Issued common stock for organization costs. Apr.08 Equipment Description Common Stock Apr 20 Cash # + Debit ✓$ 1,394,000 ✓ S ✓ 0✔ 0 Paid in Capital Preferred Stock Common Stock Additional Paid-in-Capital Paid-in-Capital in Excess of Par value - Preferred Stock Paid-in-Capital in Excess of Par value - Common Stock Total Paid-in-Capital + ✓ Retained Earnings + ✓ Total Stockholders' Equity ◆ V + V V Paid-in-Capital in Excess of Par Value - Common Stock ✔ Issued common stock for equipment. ✔5 ✔ ✔ ✔ Preferred Stock Paid-in-Capital in Excess of Par Value Preferred Stock ✔ Issued shares of preferred stock. V 0x 0 x $ 0x 0 x 0x 0✓ 0✓ $ 0 x 0 x 0✓ 0 b. Prepare the stockholders' equity section of the balance sheet at April 30. Assume that the net income for April is $49,000. Stockholders' Equity 0x Credit 0 x 0x 0x 0x 0✔ 400,000 * 22.000 x 0✔ 0x 0 x 0 0x 0x 0✔ 0 x 0x
Expert Answer:
Answer rating: 100% (QA)
A Date Description Debit Credit 1Apr Cash 8200017 1394000 Common Stock 820005 410000 ... View the full answer
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
Students also viewed these accounting questions
-
During 2014 the following selected transactions affecting stockholders equity occurred for Orlando Corporation: Apr. 1 Purchased in the market 200 shares of the companys own common stock at $20 per...
-
During 2014 the following selected transactions affecting stockholders equity occurred for TARP Corporation: a. Feb. 1 Purchased in the open market 160 shares of the companys own common stock at $20...
-
Prepare journal entries to record the above transactions for Emerson Corporation July 15 Declared a cash dividend payable to common stockholders of $161,000. Aug. 15 Date of record is August 15 for...
-
Determine the beam column shown below is capable of safely carrying the applied loads. Given loads were determined by using LRFD provisions and bending moment diagrams are obtained from second order...
-
Suppose that Disney insists that retailers cannot sell DVDs of the High School Musical series for less than $14.95. The company threatens to cut off any retailers who discount that price. But video...
-
Consider the data from Exercise 11.7.3.The difference in response between T and H appears to be larger for the low dose than for the high dose. (a) Carry out an F test for interactions to assess...
-
Write the schemes similar to (4.4), (4.9), and (4.10) for \(\partial u /\left.\partial y ight|_{i, j}\).
-
a. Which of the six potential lockbox locations should MasterDebt use and to which lockbox location should each region be assigned? b. How would your solution change if a maximum of four regions...
-
please help with 1,2,3,and 4Mohave Corp. makes several varieties of beach umbrellas andaccessories. It has been approached by a company called Lost MineIndustries about producing a special order fo 2...
-
Your company is considering deploying a chatbot, a virtual customer assistant, to initially handle customer service calls and, only when necessary, route callers to human operators for additional...
-
Why is or is not resilience an important aspect of an organization's Information/Cyber Security program? You will need to perform an Internet or research search on resilience.
-
Gwen has an IRA worth $52,000, and Brad's 401(k) is worth $225,000. Brad has an inflation protected pension from his old job (where he began working after he was married to Gwen). It will pay him a...
-
Describe an example of people being treated with equity that led them to be able to succeed. Describe an example of how treating someone with equality might not actually be fair or may limit their...
-
1- A call center has the following work load Day Full Time Equivalent (FTE) required S 11 M 17 T 13 W 15 Th 19 F 14 S 16 A FTE represents 8 hours/day. The call center may meet its daily labor...
-
Instead of 1 loan been disbursed, assumed a portfolio of loans been disbursed with % distribution of tenure (on amount), interest rate and overall disbursal as follows : Overall portfolio disbursal...
-
The Centre for Equity Studies is a not-for-profit organization in Staten Island, New York, working in the human rights sector. Currently, because of the pandemic, the employees work from home. They...
-
4T's analysis ( tolerate, terminate, treat and transfer ) for the following opportunity risks 1) Competition Risk 2) Expanding Market 3) Change in Customer Taste and Preference And how the above...
-
Suppose the S&P 500 futures price is 1000, = 30%, r = 5%, = 5%, T = 1, and n = 3. a. What are the prices of European calls and puts for K = $1000? Why do you find the prices to be equal? b. What...
-
Boss Motorcycle Shop sells motorcycles, ATVs, and other related supplies and accessories. During the taking of its physical inventory on December 31, 2010, Boss Motorcycle Shop incorrectly counted...
-
Amazon.com, an Internet retailer, was incorporated and began operation in the mid-90s. On the statement of cash flows, would you expect Amazon.com's net cash flows from operating, investing, and...
-
What is the most important purpose of the cost of production report?
-
Describe precious metal and gem investments and why they remain popular despite their speculative nature.
-
A friend of yours tells you that his parents plan to pay for his college education by selling some family jewelry. Write About It Write a paragraph explaining why you might question this plan.
-
Explain why so many fraud complaints are related to online auctions.
Study smarter with the SolutionInn App