Event1: Additional shares were issued to raise capital of $240. Does that mean cash on hand...
Homework Answers
Hi.
This Statement is partially true.
See , as far as the contributed equity is concerned , it will always increase with the issue of shares. But not necessarily with the exact amount.
If the shares are issued at the face value , surely the contributed capital will increase with the equal amount. But when the shares are issued at the rate above than the face value , the contributed equity will increase only with the amount equal to the face value and the balance amount will be credited to Securities Premium account.
Also , not necessary the cash amount will exactly be the same as the amount of capital raised. The companies might issue shares for consideration other than Cash. If the consideration is fully is cash , Yes the Cash in hand will increase by $240.
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Event1: Additional shares were issued to raise capital of $240.
Does that mean cash on hand...
Mar. 23: Issued 240 shares of $1 par value common stock for cash of $12 per...
Mar. 23: Issued 240 shares of $1 par value common stock for cash of $12 per share Accounts and Explanation Date Debit Credit 2,880 Cash Mar. 23 Common Stock-$1 Par Value 240 Paid-In Capital in Excess of Par-Common 2,640 Issued common stock for cash. Apr. 12: Received inventory with a market value of $24,000 and equipment with a market value of $18,000 for 340 shares of the $1 par value common stock Accounts and Explanation Date Debit Credit 24,000 Inventory...
12-4A $1,560,000 462,000 $2,022,000 Contributed capital Preferred shares. $17 cumulative, issued, and outstanding....... Common shares, unlimited...
12-4A
$1,560,000 462,000 $2,022,000 Contributed capital Preferred shares. $17 cumulative, issued, and outstanding....... Common shares, unlimited shares authorized, 40.000 shares issued and outstanding Total contributed capital vertible into common a referred are converted int ity section of the balan Retained earings Total equity balance shoes he company plans to pay quired Refer to the equity section above. Assume that the preferred are convertible of eight common shares for each share of preferred. If on April 1, 2020, prepare the entry...
Concord Inc. decided to sell shares to raise additional capital so that it could expand into...
Concord Inc. decided to sell shares to raise additional capital so that it could expand into the rapidly growing service industry. The corporation chose to sell these shares through a subscription basis and publicly notified the investment world. The offering was 50,000 shares at $24 a share. The terms of the subscription were 37% down and the balance was due at the end of six months. All shares were subscribed for during the offering period. (a) Prepare the journal entries...
Tandy Company was issued a charter by the state of Indiana on January 15 of this...
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the followin Common stock, $6 par value, 115,000 shares authorized Preferred stock, 7 percent, par value $10 per share, 4,900 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 21,700 shares of common stock at $20 cash per share. b. Sold and issued 1,300 shares of preferred stock at $24 cash...
Common Stock, $1 par (2,700,000 shares authorized, 705,000 shares issued and outstanding) $705,000 Paid-in Capital in...
Common Stock, $1 par (2,700,000
shares authorized, 705,000 shares issued and outstanding)
$705,000
Paid-in Capital in Excess of Par
Value
1,430,000
Retained Earnings
684,000
Accumulated Other Comprehensive Income
47,000
During 2022, the following transactions and events
occurred.
1.
Issued 45,500 shares of $1 par
value common stock for $2 per share.
2.
Issued 60,500 shares of common
stock for cash at $5 per share.
3.
Purchased 23,700 shares of common
stock for the treasury at $3.30 per share.
4.
Declared...
were completed duning the frst year cash at $6 per share. pe. 1 Issued 24,000 shares...
were completed duning the frst year cash at $6 per share. pe. 1 Issued 24,000 shares of common stock ay 1 Issued 76,500 shares of ug. 1 Issued 11,000 shares of common stock to ept. 1 Issued 11,500 shares of common stock for cash at $5 per share. stock for cash at $4.25 per share. of 237 Apr. 1 ▼ |Land 87 Stock 229 Paid-in Capital in Excess of Stated Valu 57500 34500 162000 We were unable to transcribe this...
$5 Par Common $10 Par Preferred Additional paid-in capital $2,250,000 $50,000 Shares: Authorized 750,000 40,000 Issued...
$5 Par Common $10 Par Preferred Additional paid-in capital $2,250,000 $50,000 Shares: Authorized 750,000 40,000 Issued 300,000 8,000 Outstanding 250,000 8,000 Retained earnings is $1,837,000, and the cost of treasury shares is $1,200,000. Required: Prepare the stockholders' equity portion of Renee's balance sheet. Accounts, Labels and Amount Descriptions Accounts Common stock Common stock, $5 par, 750,000 shares authorized, 300,000 shares issued, and 250,000 shares outstanding Preferred stock Preferred stock, $10 par, 40,000 shares authorized, 8,000 shares issued and outstanding Retained...
Common stock-$10 par value, 80,000 shares authorized, issued, and outstanding Paid-in capital in excess of par...
Common stock-$10 par value, 80,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 800,000 256,000 928,000 $1,984,000 1. Prepare Journal entries to record the following transactions for Sherman Systems. a. Purchased 5,800 shares of its own common stock at $33 per share on October 11. b. Sold 1,200 treasury shares on November 1 for $39 cash per share. c. Sold all remaining treasury shares on November 25 for...
The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows: 2021 2020 Contributed capital: Common shares, 51,600 shares authorized; 25,440 and 23,100 shares issued and outstanding, respecti
The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows: 20212020Contributed capital:Common shares, 51,600 shares authorized; 25,440 and 23,100 shares issued and outstanding, respectively.$600,200$512,820Retained earnings548,300615,500The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Kentucky): Jan.5A $1.50 per share cash dividend was declared, and the date of record was five days later.Mar.201,900 common shares were repurchased and retired at $22.20 per share.Apr.5A $1.00 per share cash dividend was declared, and the date...
The equity section from the December 31, 2020 and 2021, balance sheets of Westburne Corporation appeared as follows: 2021 2020 Contributed capital: Common shares, 50,000 shares authorized; 26,520 and 25,300 shares issued and outstandin
The equity section from the December 31, 2020 and 2021, balance sheets of Westburne Corporation appeared as follows: 20212020Contributed capital:Common shares, 50,000 shares authorized; 26,520 and 25,300 shares issued and outstanding, respectively$583,440$506,000Retained earnings577,000465,000The following transactions occurred during 2021 (assume the retirements were the first ever recorded by Westburne): Jan.5A $1.30 per share cash dividend was declared, and the date of record was five days later.Mar.203,200 common shares were repurchased and retired at $20.00 per share.Apr.5A $1.30 per share cash dividend was declared, and...
Mar. 23: Issued 240 shares of $1 par value common stock for cash of $12 per share Accounts and Explanation Date Debit Credit 2,880 Cash Mar. 23 Common Stock-$1 Par Value 240 Paid-In Capital in Excess of Par-Common 2,640 Issued common stock for cash. Apr. 12: Received inventory with a market value of $24,000 and equipment with a market value of $18,000 for 340 shares of the $1 par value common stock Accounts and Explanation Date Debit Credit 24,000 Inventory...
12-4A
$1,560,000 462,000 $2,022,000 Contributed capital Preferred shares. $17 cumulative, issued, and outstanding....... Common shares, unlimited shares authorized, 40.000 shares issued and outstanding Total contributed capital vertible into common a referred are converted int ity section of the balan Retained earings Total equity balance shoes he company plans to pay quired Refer to the equity section above. Assume that the preferred are convertible of eight common shares for each share of preferred. If on April 1, 2020, prepare the entry...
Concord Inc. decided to sell shares to raise additional capital so that it could expand into the rapidly growing service industry. The corporation chose to sell these shares through a subscription basis and publicly notified the investment world. The offering was 50,000 shares at $24 a share. The terms of the subscription were 37% down and the balance was due at the end of six months. All shares were subscribed for during the offering period. (a) Prepare the journal entries...
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the followin Common stock, $6 par value, 115,000 shares authorized Preferred stock, 7 percent, par value $10 per share, 4,900 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 21,700 shares of common stock at $20 cash per share. b. Sold and issued 1,300 shares of preferred stock at $24 cash...
Common Stock, $1 par (2,700,000
shares authorized, 705,000 shares issued and outstanding)
$705,000
Paid-in Capital in Excess of Par
Value
1,430,000
Retained Earnings
684,000
Accumulated Other Comprehensive Income
47,000
During 2022, the following transactions and events
occurred.
1.
Issued 45,500 shares of $1 par
value common stock for $2 per share.
2.
Issued 60,500 shares of common
stock for cash at $5 per share.
3.
Purchased 23,700 shares of common
stock for the treasury at $3.30 per share.
4.
Declared...
were completed duning the frst year cash at $6 per share. pe. 1 Issued 24,000 shares of common stock ay 1 Issued 76,500 shares of ug. 1 Issued 11,000 shares of common stock to ept. 1 Issued 11,500 shares of common stock for cash at $5 per share. stock for cash at $4.25 per share. of 237 Apr. 1 ▼ |Land 87 Stock 229 Paid-in Capital in Excess of Stated Valu 57500 34500 162000 We were unable to transcribe this...
$5 Par Common $10 Par Preferred Additional paid-in capital $2,250,000 $50,000 Shares: Authorized 750,000 40,000 Issued 300,000 8,000 Outstanding 250,000 8,000 Retained earnings is $1,837,000, and the cost of treasury shares is $1,200,000. Required: Prepare the stockholders' equity portion of Renee's balance sheet. Accounts, Labels and Amount Descriptions Accounts Common stock Common stock, $5 par, 750,000 shares authorized, 300,000 shares issued, and 250,000 shares outstanding Preferred stock Preferred stock, $10 par, 40,000 shares authorized, 8,000 shares issued and outstanding Retained...
Common stock-$10 par value, 80,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 800,000 256,000 928,000 $1,984,000 1. Prepare Journal entries to record the following transactions for Sherman Systems. a. Purchased 5,800 shares of its own common stock at $33 per share on October 11. b. Sold 1,200 treasury shares on November 1 for $39 cash per share. c. Sold all remaining treasury shares on November 25 for...
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