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Li & Tu, Inc., needed land for a plant site. It issued 100 shares of $ 480 par value common stock to the incorporators of
| Li & Tu, Inc., needed land for a plant site. It issued 100 shares of $ 480 par value common stock to the incorporators of their corporation in exchange for land, which cost $ 56,000 one year ago. Experienced appraisers recently valued the land at $ 72,000. What journal entry would be appropriate to record the acquisition of the land? | |||||||||
| GENERAL JOURNAL | |||||||||
| POST | |||||||||
| Date | Account/Description | REF. | Debit | Credit | |||||
| Kelly Company had outstanding 50,000 shares of $ 10 par value common stock, and had retained earnings of $ 800,000. The company reacquired 3,000 shares of its stock for cash at $40 per share. | |||||||||
| 1. Give the entry to record the reacquisition of the stock. | |||||||||
| 2. Give the entry to record the subsequent reissuance of 1,200 shares ofthis stock at $ 50 per share. | |||||||||
| 3. Give the entry to record the subsequent reissuance of 800 shares of this stock at $28 per share. | |||||||||
| 4. Give the entry to record the subsequent reissuance of the remaining shares of this stock at $35 per share. | |||||||||
| 5. Give the entry required if the stock is instead reissued at $ 30 per share and there were no prior treasury stock transactions. | |||||||||
| GENERAL JOURNAL | |||||||||
| POST | |||||||||
| Date | Account/Description | REF. | Debit | Credit | |||||
| Sonny Shade, Roni Rain, and Chloe Cloud form the Stormy Season partnership. Sonny has a capital balance of $200,000; Roni $300,000; and Chloe $600,000. They invite Sal Pond to join the partnership for $100,000 for a 1/6 interest. | |||||||||
| 1. Give the entry to record the new partner. | |||||||||
| 2. Now assume that Sal paid $200,000 for a 1/10 interest. Give the entry. | |||||||||
| 3. Now assume that Sal bought out Sonny's interest for $150,000. Give the entry. | |||||||||
| GENERAL JOURNAL | |||||||||
| POST | |||||||||
| Date | Account/Description | REF. | Debit | Credit | |||||
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Accounting Principles
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
7th Canadian Edition Volume 2
1119048478, 978-1119048473
