Hello. I need guide to answer these so that I may review for my upcoming exams. Please show your solutions so that I may compare it to my own answers. Thank you in advance :)
Problem 1 During its rst year of operations, Benji Corporation had the following transactions pertaining to its common stock. Jan. 10 Issued 70,000 shares for cash at $5 per share. July 1 Issued 40,000 shares for cash at $7 per share. Instructions 1. (a) Journaljze the transactions, assuming that the common stock has a par value of $5 per share. 2. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share. Problem 2 Jake Corporation issued 1,000 shares of stock. Instructions Prepare the entry for the issuance under the following assumptions. (a) The stock had a par value of $5 per share and was issued for a total of $52,000. (b) The stock had a stated value of $5 per share and was issued for a total of $52,000. (c) The stock had no par or stated value and was issued for a total of $52,000. (d) The stock had a par value of $5 per share and was issued to attorneys for services during incorporation valued at $52,000. (e) The stock had a par value of $5 per share and was issued for land worth $52,000.Problem 3 On January 1, 2012, the stockholders' equity section of Joshua Corporation shows: Common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,200,000. During the year, the following treasury stock transactions occurred. Mar. 1 Purchased 50,000 shares for cash at $15 per share. July 1 Sold 10,000 treasury shares for cash at $17 per share. Sept. 1 Sold 8,000 treasury shares for cash at $14 per share. | Instructions (a) Journalize the treasury stock transactions. Mar. 1 July 1 Sept. 1P mhlem 4 The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Borkowski Corporation at December 3 1, 2012. Common Stock ($5 stated value] $1,200,000 Paid-in Capital in Excess of ParPreferred Stock 280,000 Paidin Capital in Excess of Stated ValueCommon Stock 900,000 Preferred Stock (8%, $100 par, nonwmulativc) 500,000 Retained Earnings 1,134,000 Treasury Stock (10,000 common shares] 120,000 Instmctions Prepare the stockholders\" equity section of the balance sheet at December 3 1, 2012
