Several independent transactions are as follows: 1. 10,000 shares of no-par common stock are issued for $50
Question:
Several independent transactions are as follows:
1. 10,000 shares of no-par common stock are issued for $50 per share.
2. 10,000 shares of $1 par value common stock are issued for $40 per share.
3. 10,000 shares of $10 par value common stock are issued for $30 per share.
4. 5,000 shares of no-par preferred stock are issued for $80 per share.
INSTRUCTIONS:
a. Prepare journal entries for each transaction.
b. What is the significance of par value from a financial accounting standpoint? Is par value significant in any economic sense?
Step by Step Answer:
a 1 Cash 500000 Common stock 500000 10000 x 50 per share ...View the full answer
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Business questions
-
Prepare journal entries for each transaction listed. a. During the period, bad debts are written off in the amount of $22,000. b. At the end of the period, bad debt expense is estimated to be $13,000.
-
Prepare journal entries for each of the following: a. Issued a check to establish a petty cash fund of $300. b. The amount of cash in the petty cash fund is $95. Issued a check to replenish the fund,...
-
Prepare journal entries for each of the following selected transactions. a. On January 13, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $80,000 cash along with...
-
Answer Problem 6.12 for a 90% CI. Refer to the data in Table 2.13. Regard this hospital as typical of Pennsylvania hospitals. Table 2.13: Hospital-stay data
-
Calculate the missing values for the promissory notes described issue date Face value ($) Term 90 days Interest rate (%) 10.20 Maturity value ($) 2667.57 July 3
-
How fast does water flow from a hole at the bottom of a very wide, 4.6-m-deep storage tank filled with water? Ignore viscosity.
-
Modify Table 11-1 by indicating if each specific control procedure listed there is preventive (P), detective (D), or corrective (C) in nature. Table 11-1 Threats and Controls in the Expenditure Cycle...
-
1. Calculate the internal growth rate and sustainable growth rate for S&S Air. What do these numbers mean? 2. S&S Air is planning for a growth rate of 12 percent next year. Calculate the EFN for the...
-
What is the most relevant benchmark for an alternative investment strategy? Positive rate of return. A rate of return in excess of the relevant index. A rate of return within 5 percentage points of...
-
On February 12, 2002, Nancy Trout and Delores Lake formed Kingfisher Corporation to sell fishing tackle. Pertinent information regarding Kingfisher is summarized as follows: Kingfisher's business...
-
The following information was taken from the 2019 statement of shareholders' equity for Microsoft (dollars in billions). INSTRUCTIONS: a. Explain the nature of stock-based compensation expense. b....
-
The following information was taken from the 2019 annual report of Coca-Cola ( dollar and share amounts in millions): a. At what average price did the company repurchase its shares in 2017? b. At...
-
Show how the classical economists thought about aggregate supply by graphing the classical aggregate supply curve. Explain why they believed that this represented the economy.
-
Wilson Industries sources from multiple suppliers and is considering the aggregation of inbound shipments to lower its costs. Truckload shipping costs $ 5 0 0 per truck along with $ 1 0 0 per pickup....
-
At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to...
-
You set a goal to complete a home renovation project by the end of the month. Which measurement strategy will best help you track and achieve your goal? a.) Survey your friends who have done home...
-
Use interval notation to indicate where f(x) = x-7 (x-3)(x+3) is continuous. Answer: E Note: Input U, infinity, and -infinity for union, oo, and-oo, respectively. 700
-
1 2 3 Transaction 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 01. 02. 03. 04. 05. 06. 07. 08. 09. 10. Ready B Byte of Accounting, Inc. Description of transaction June 1: Byte of Accounting,...
-
Dukane Company expects to produce 1.2 million units of product XX in 2016. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are as...
-
Parkin Industries, a U.S. company, acquired a wholly-owned subsidiary, located in Italy, at the beginning of the current year, for 200,000. The subsidiary's functional currency is the euro. The...
-
Goods costing $3,000 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18 a $200 credit was received from the supplier for damaged goods. Give the journal entry on July 24...
-
Explain where each of the following items would appear on (1) A multiple step income statement, and on (2) A single-step income statement: (a) Gain on sale of equipment, (b) Interest expense, (c)...
-
Assume the same information as in BE5-10 and also that Alshare Company has beginning inventory of $60,000, ending inventory of $90,000, and net sales of $630,000. Determine the amounts to be reported...
-
Mutual Funds Suppose that in a certain year, the Fidelity Nordic Fund (FNORX) was expected to yield 4%, and the T. Rowe Price Global Technology Fund (PRGTX) was expected to yield 8%. You would like...
-
Weller Company's budgeted unit sales for next year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Budgeted unit sales 25,000 26,000 22,000 23,000 The companys variable selling...
-
Q3-1 Governmental budgeting and budgetary control are deemed so important by the GASB that it devotes an entire principle to the subject. Why? Q3-2 Distinguish between the following types of budgets:...
Study smarter with the SolutionInn App