Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of common shares. During January 2020, Its first month of operations,

image text in transcribedimage text in transcribed

Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of common shares. During January 2020, Its first month of operations, the following selected transactions occurred: Skipped Jan. 1 1,eee shares were issued to the organizers of the corporation. The total value of the shares was determined to be $12,300. 5 15,eee shares were sold to various shareholders for $13.80 each. 15 The board of directors declared a cash dividend of $0.78 per common share to shareholders of record on January 19, payable January 31. 20 4,800 shares were issued in exchange for land valued at $49,200. The shares were actively trading on this date at $11.80 per share. 31 Closed the Income Summary account, which showed a credit balance of $168, eee. 31 Paid the dividends declared on January 15. Required: a. Journalize the above transactions. The Company does not use a Cash Dividends Account. View transaction list Journal entry worksheet 2 3 4 5 6 Record the issuance of shares. Note: Enter debits before credits. General Journal Debit Credit Date January 01, 2020 Record entry Clear entry View general journal b. Prepare the equity section of Westby's balance sheet at January 31, 2020. WESTBY CORP. Equity Section of the Balance Sheet January 31, 2020 Total equity c. What was the average Issue price per common share? (Round your answer to 2 decimal places.) Average issue price per share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Accounting Principles Volume 2

Authors: Kermit D. Larson, Heidi Dieckmann, John Harris

17th Canadian Edition

1260881334, 9781260881332

More Books

Students also viewed these Accounting questions

Question

=+6. Select the one that would work best for this client.

Answered: 1 week ago