Homework Answers
| Par value of common share ($7,50,000/$1,50,000) | $ 5.00 | ||
| Date | Account titles and explanation | Debit | Credit |
| June 10 | Class A Common Stock (1800*5) | $ 9,000 | |
| 2020 | Cash (1800*4.15) | $ 7,470 | |
| Contributed Surplus or additional paid in capital (9,000-7,470) | $ 1,530 | ||
| (To record the reacquired and cancelled 1,800 class A common shares at cost of $4.15 per share) | |||
| Aug 26 | Cash (3600*8.55) | $ 30,780 | |
| 2020 | Class A Common stock (3600*5) | $ 18,000 | |
| Contributed Surplus or additional paid in capital (30,780-18,000) | $ 12,780 | ||
| To record the issued 3,600 class A common shares for $8.55 each | |||
| Sep 30 | Class A Common Stock (1800*5) | $ 9,000 | |
| 2020 | Contributed Surplus or additional paid in capital (15390-9000) | $ 6,390 | |
| Cash (1800*8.55) | $ 15,390 | ||
| To record the reacquired and cancelled 1,800 class A common shares at cost of $8.55 per share |
Notes
- Cancellation of stock done on FIFO Basis
- Alternatively we can directly transfer Contributed Surplus or additional paid in capital to Retained Earnings.
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Indigo Company had the following Shareholders' Equity accounts as of May 1, 2020: Share capital: Preferred...
Indigo Company had the following Shareholders' Equity accounts as of May 1, 2020: Share capital: Preferred...
Indigo Company had the following Shareholders' Equity accounts as of May 1, 2020: Share capital: Preferred shares, 60,000 issued and outstanding Class A common shares, 150,000 issued and outstanding Class B common shares, 440,000 issued and outstanding Retained earnings Total shareholders' equity $738,000 750,000 2,530,000 3,285,000 $7,303,000 On June 10, Indigo reacquired and cancelled 1,800 Class A common shares at a cost of $4.15 per share. On August 26, 2020, Indigo issued 3.600 Class A common shares for $8.55 each....
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Whispering Company had the following Shareholders’ Equity accounts as of May 1, 2020: Share capital: Preferred...
Whispering Company had the following Shareholders’ Equity
accounts as of May 1, 2020:
Share capital:
Preferred shares, 60,000
issued and outstanding
$738,000
Class A common shares,
150,000 issued and outstanding
750,000
Class B common shares,
440,000 issued and outstanding
2,530,000
Retained earnings
3,285,000
Total shareholders’
equity
$7,303,000
On June 10, Whispering reacquired and cancelled 1,800 Class A
common shares at a cost of $4.15 per share. On August 26, 2020,
Whispering issued 3,600 Class A common shares for $8.55 each....
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On January 1, 2020, Agassi Corporation had the following stockholders' equity accounts. Common Stock ($10 par...
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On January 1, 2020, Agassi Corporation had the following stockholders’ equity accounts. Common Stock ($10 par...
On January 1, 2020, Agassi
Corporation had the following stockholders’ equity accounts.
Common Stock ($10 par value, 50,000 shares issued and
outstanding)
$500,000
Paid-in Capital in Excess of Par—Common Stock
493,000
Retained Earnings
616,000
During 2020, the following transactions occurred.
Jan. 15
Declared and paid a $1.05 cash dividend per share to
stockholders.
Apr. 15
Declared and paid a 10% stock dividend. The market price of the
stock was $13 per share.
May 15
Reacquired 1,800 common shares at a...
National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock,...
National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock, 9 million shares at $1 par $ 9,000,000 Paid-in capital—excess of par 81,000,000 Retained earnings 80,500,000 Required: 1. National Supply reacquired shares of its common stock in two separate transactions and later sold shares. Prepare the entries for each of the transactions under each of two separate assumptions: the shares are (a) retired and (b) accounted for as treasury stock. February 15, 2021 Reacquired...
National Supply’s shareholders’ equity included the following accounts at December 31, 2020: Shareholders' Equity Common stock,...
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Whispering Company had the following Shareholders’ Equity
accounts as of May 1, 2020:
Share capital:
Preferred shares, 60,000
issued and outstanding
$738,000
Class A common shares,
150,000 issued and outstanding
750,000
Class B common shares,
440,000 issued and outstanding
2,530,000
Retained earnings
3,285,000
Total shareholders’
equity
$7,303,000
On June 10, Whispering reacquired and cancelled 1,800 Class A
common shares at a cost of $4.15 per share. On August 26, 2020,
Whispering issued 3,600 Class A common shares for $8.55 each....
Pharoah Company had the following Shareholders' Equity accounts as of May 1, 2020: $1,008,000 665,500 Share capital: Preferred shares, 80,000 issued and outstanding Class A common shares, 110,000 issued and outstanding Class B common shares, 330,000 issued and outstanding Retained earnings Total shareholders' equity 1,666,500 3,285,000 $6,625,000 On June 10, Pharoah reacquired and cancelled 1,900 Class A common shares at a cost of $5.20 per share. On August 26, 2020, Pharoah issued 3,800 Class A common shares for $9.45 each....
port Concord Company had the following Shareholders' Equity accounts as of May 1, 2020: Share capital: Preferred shares, 50,000 issued and outstanding Class A common shares, 120,000 issued and outstanding Class B common shares, 330,000 issued and outstanding Retained earnings Total shareholders' equity $627,500 624,000 1,963,500 3.285.000 $6,500,000 On June 10. Concord reacquired and cancelled 1,500 Class A common shares at a cost of $4.10 per share. On August 26, 2020. Concord issued 3.000 Class A common shares for $8.40...
Martinez Company had the following Shareholders' Equity accounts as of May 1, 2020: Share capital: Preferred shares, 60,000 issued and outstanding Class A common shares, 100,000 issued and outstanding Class B common shares, 390,000 issued and outstanding Retained earnings Total shareholders' equity $747,000 605,000 1,950,000 3.250,000 $6,552,000 On June 10, Martinez reacquired and cancelled 1,000 Class A common shares at a cost of $4.90 pershare. On August 26, 2020, Martinez issued 2,000 Class A common shares for $9.60 each. On...
On January 1, 2020, Agassi Corporation had the following stockholders' equity accounts. Common Stock ($10 par value, 70,000 shares issued and outstanding) Paid-in Capital in Excess of Par-Common Stock Retained Earnings $700,000 500,000 617,000 During 2020, the following transactions occurred. Jan. 15 Declared and paid a $1.05 cash dividend per share to stockholders. Declared and paid a 10% stock dividend. The market price of the stock was $14 per share. Reacquired 1,800 common shares at a market price of $16...
On January 1, 2020, Agassi
Corporation had the following stockholders’ equity accounts.
Common Stock ($10 par value, 50,000 shares issued and
outstanding)
$500,000
Paid-in Capital in Excess of Par—Common Stock
493,000
Retained Earnings
616,000
During 2020, the following transactions occurred.
Jan. 15
Declared and paid a $1.05 cash dividend per share to
stockholders.
Apr. 15
Declared and paid a 10% stock dividend. The market price of the
stock was $13 per share.
May 15
Reacquired 1,800 common shares at a...
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