Log in
Accounting
1
answer
0
watching
100
views

Stores is authorized to issue10,000

shares of common stock. During a​ two-month period,Captain

completed these​ stock-issuance transactions:

Jan 23 Issued 2,600 shares of $2.50 par common stock for cash of $15.00 per share.
Feb 12 Received inventory with a market value of $20,000 and equipment with market
value of $45,000 for 3,300 shares of the $2.50 par common stock.

Requirements

1.

Journalize the transactions.

2.

 Prepare the​ stockholders' equity section of

CaptainCaptain

​Stores' balance sheet for the transactions given in this exercise. Retained Earnings has a balance of

$47,000.

Requirement 1. Journalize the transactions.

Begin by journalize the transaction on

JanuaryJanuary

23. ​(Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

Journal Entry

Date

Accounts

Debit

Credit

Jan

23

Cash

Common Stock

Watch
1
answer
0
watching
100
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Tod Thiel
Tod ThielLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

POSTING QUESTION INVOLVING : Journalizing issuance of stock andpreparing the stockholders equity section of the balance sheet

Known History: As of March 23-Common Stock $690

The Charter of Trugreen Corporation authorizes the issuance of900 shares of preferred stock and 1,400 shares of common stock.During a two-month period Trugreen completed these stock-issuancetransactions:

Mar 23 Issued 230 shares of $3 par value common stock for cashof $15 per share.

April 12 Received inventory with a market value of $27,000 andequipment with a market value of $19,000 for 320 shares of the $3par value common stock.

April 17 Issued 900 shares of 5%, $20 par value preferred stockfor $20 per share.

Required to figure out two things

Record the transactions in the general journal by Date, Accountsand Explanations, Debits, and credits

Prepare the stockholders equity section of the Trugreen balancesheet as of April 30, 2018, for the transactions in this exerciseRetained Earnings has a balance of $73,000 at April 30th.

Balance Sheet Partial (NOT SURE IF THE DATE, NAME, OR $ AMOUNTSHOULD BE ABOVE THIS)

then Stockholder's equity (AGAIN NOT SURE WHAT SHOULD BE ABOVETHIS)

Paid In Capital: Preferred Stock , 5% , $20 par value ; 900shares authorized, issued and outstanding= AMOUNT?

Common stock --$3 Par Value ; 1,400 shares authorized, 550shares issued and outstanding = AMOUNT?

Paid-in captial in Excess of par-Common=AMOUNT?

total paid in capital=AMOUNT?

Retained Earnings=AMOUNT?

Total stockholders Equity=AMOUNT?

Winslow Corporation reported stockholders' equity on December 31of the prior year as follows:

Common stock, $5 par value, 1,000,000 shares authorized, 500,000shares issued

$2,500,000

Paid-in capital in excess of par, common stock

1,000,000

Retained earnings

3,140,000


The following selected transactions occurred during the currentyear:

Jan 17

Retained Earnings

400,000

Common Dividend Payable

400,000

Feb 5

Common Dividend Payable

400,000

Cash

400,000

Feb 28

Retained Earnings

300,000

Common Stock Dividend Distributable

100,000

Paid-In Capital in Excess of Par Value

200,000

March 14

Common Stock Dividend Distributable

100,000

Common Stock, $5 par value

100,000

March 25

Memo – 2 for 1 stock split, Change the title

Of the Common Stock account to reflect

The new par value of $2.50

March 31

Income Summary

600,000

Retained Earnings

600,000

Using the schedule on the template, record the abovetransactions in the proper columns and calculate the endingbalances for each item.

Prepare a Stockholder’s Equity section of the Balance Sheet, ingood form, as of December 31 of the current year.


Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balances on January 1, 20Y5, are as follows: Common stock, $20 stated value (500,000 shares authorized, 367,000 shares issued) $7,340,000 Paid-In Capital in Excess of Stated Value—Common Stock 844,100 Retained Earnings 33,388,000 Treasury Stock (22,800 shares, at a cost of $17 per share) 387,600 The following selected transactions occurred during the year: Jan. 22 Paid cash dividends of $0.09 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $30,978. Apr. 10 Issued 71,000 shares of common stock for $23 per share. Jun. 6 Sold all of the treasury stock for $27 per share. Jul. 5 Declared a 3% stock dividend on common stock, to be capitalized at the market price of the stock, which is $26 per share. Aug. 15 Issued the certificates for the dividend declared on July 5. Nov. 23 Purchased 28,000 shares of treasury stock for $18 per share. Dec. 28 Declared a $0.09-per-share dividend on common stock. 31 Closed the two dividends accounts to Retained Earnings. Required: A. Enter the January 1 balances in T accounts for the stockholders’ equity accounts listed. B. Journalize the entries to record the transactions, and post to the eight selected accounts. No post ref is required in the journal. Refer to the Chart of Accounts for exact wording of account titles. C. Prepare a retained earnings statement for the year ended December 31, 20Y5. Assume that Morrow Enterprises had net income for the year ended December 31, 20Y5, of $1,131,500. For those boxes in which you must enter subtractive or negative numbers use a minus sign. The word “Less” is not required.* D. Prepare the Stockholders’ Equity section of the December 31, 20Y5, balance sheet. For those boxes in which you must enter subtractive or negative numbers use a minus sign.* * Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in