Part a - Journal Entries
Date | Particulars | Dr. Amt ($) | Cr. Amt ($) |
1-Jan | Cash A/c | 12,000 | |
Common Stock | 12,000 | ||
(1000 shares issued to organizers for $12000 @ $12/share) | |||
5-Jan | Cash A/c | 202,500 | |
Common stock | 180,000 | ||
Paid in capital in excess of par value ($1.5 per share *15000 shares) | 22,500 | ||
(15000 shares issued to shareholders @ $13.5 each, i.e. at a premium of $1.5/share) | |||
15-Jan | Retained Earnings | 12,000 | |
Dividend Payable A/c | 12,000 | ||
(Dividend declared as $0.75/share for shares issued as on Jan19 to be paid on Jan 31) | |||
20-Jan | Land (Property, Plant, Equipment) | 46,000 | |
Discount on Common Stock | 2,000 | ||
Common Stock | 48,000 | ||
(Land purchased in exchange of stock. Land value is recorded at market value of shares issued since fair market value of land is not available) | |||
31-Jan | Dividend Payable A/c | 12,000 | |
Cash A/c | 12,000 | ||
(Dividend declared on Jan15 is paid out) | |||
31-Jan | Income summary | 165,000 | |
Retained Earnings | 165,000 | ||
Part b - Equity section of Westby's Balance sheet as on 31st January, 2020
Particulars | Amount ($) |
Common Stock | |
(20,000 shares at a par value of $12/share) | 240,000 |
Additional Paid -in Capital on Common Stock (Paid in capital in excess of par value less discount on common stock) | 20,500 |
Retained Earnings (Transfer from income summary less dividend paid) | 153,000 |
Total Stockholders Equity | 413,500 |
Part c - Average issue price per common share
Total proceeds from issue of shares (in cash or kind) | $ 260,500 |
Total number of shares | 20,000 |
Simple average issue price per share | $ 13.03 |
12-6 anding on March ch 1.10, and 31 rch 1, the board of directors declared a...
($ in eees) $120,000 720,000 990,800 Common stock, 120 million shares at $1 par Paid-in capital-excess of par Retained earnings a. November 1, 2018, the board of directors declared a cash dividend of $0.80 per share on its common shares, payable to shareholders of record November 15, to be paid December 1 b. On March 1, 2019, the board of directors declared a property dividend consisting of corporate bonds of Warner Corporation that Branch-Rickie was holding as an investment. The...
Please help me doing a) and b). Get stuck in Jan 31 (the first one of income summary) 30 W WU Was Owed $100,000. Te duard of directors declared a cash dividend of $15,000 on the preferred shares and $5,000 on the common shares to shareholders of record on June 20, payable July 1. Dedee that you will shechilder 150,000 common shares were issued in exchange for machinery with a fair market value of $2,000,000. The shares were actively trading...
The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2020: During 2021, several events and transactions affected the retained earnings of Consolidated Paper Required: 1. Prepare the appropriate entries for these events. a. On March 3, the board of directors declared a property dividend of 205,000 shares of Leasco International common stock that Consolidated Paper had purchased in January as an investment (book value: $604,000). The investment shares had a fair value of $3 per share and...
On September 15, 2020, the Board of Directors of Tamarisk Company declared a 90¢ per share cash dividend, payable on October 31 to shareholders of record as of October 1. On the date of declaration, Tamarisk Company had 205,000 common shares outstanding, of which 27,000 were held in Treasury. On October 15, 2020, the company issued an additional 60,000 common shares for $6.00 each. Prepare all the required journal entries to record these transactions. (Credit account titles are automatically indented...
Record the above transactions for 2018, including any entries required to close dividends declared and net income to Retained Earnings, open T accounts and post to the shareholders’ equity accounts, prepare a statement of retained earnings for the year. On January 1, 2018, Macaron Ltd., a private company, had the following shareholders' equity accounts: Preferred shares, $1 noncumulative, unlimited number authorized, none issued Common shares, unlimited number authorized, 3.07 million issued Retained earnings $3,070,000 4,150,000 The following selected transactions occurred...
Pacifica Papers Inc. needed to conserve cash, so instead of a cash dividend the board of directors declared a 5% common share dividend on June 30, 2020, distributable on July 15, 2020. Because performance during 2020 was better than expected, the company’s board of directors declared a $0.95 per share cash dividend on November 15, 2020, payable on December 1, 2020, to shareholders of record on November 30, 2020. The equity section of Pacifica’s December 31, 2019, balance sheet showed:...
Testbank, Question 79 On July 15, 2018, the board of directors of George Easton Limited declared a cash dividend of $0.50 per share on 84,000 common shares. The dividend is to be paid on August 15, 2018, to shareholders of record on July 31, 2018. The effects of the journal entry to record the declaration of the dividend on July 15, 2018, are to decrease shareholders' equity and decrease assets. o decrease shareholders' equity and increase liabilities. o increase shareholders'...
HAPTER 13 Corporate Reporting: Profit, Earnings Per Share, and Retained Earnings On November I November 20 te EXERCISES 29 were $2.35, $ Exercise 13-1 Share dividends LO1 Required CHECK FIGURE: 2. Retained earnings $577150 1. Prepare the Arcus Development Inc.'s equity section on the December 31, 2019, balance sheet showed the following 2. Prepare the information: November 2 Common shares, unlimited shares authorized 210.000 shares issued and outstanding Analysis Com and why? $3,360,000 Retained earnings. 575,000 On January 15, 2020,...
The balance sheet of Consolidated Paper, Inc., included the following shareholders' equity accounts at December 31, 2020: $ 83.000 Paid-in capital: Preferred stock, 8.0%, 83,000 shares at $1 par Common stock, 333,300 shares at $1 par Paid-in capital-excess of par, preferred Paid-in capital-excess of par, common Retained earnings Treasury stock, at cost; 3,300 common shares Total shareholders' equity 333,300 1,455,000 2,505,000 8,345,000 (36,300) $12,685,000 During 2021, several events and transactions affected the retained earnings of Consolidated Paper Required: 1. Prepare...
Record the above transactions for 2018, including any entries required to close dividends declared and net income to Retained Earnings. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Transaction entries: Problem 11-4A (Part Level Submission) On January 1, 2018, Tarjee Ltd., a private company, had the following shareholders' equity accounts: Preferred shares, $1 noncumulative, unlimited...