TGM517: Accounting
March 02, 2021
Essayheroes
” Prepare the stockholders’ equity section of Waldemar Corporation’s balance sheet from the following accounts and balances on December 31, 2014:Common Stock, $10 par value, 30,000 shares authorized, 20,000 shares issued, and 19,500 shares outstanding$200,000Additional Paid-in Capital100,000Retained Earnings15,000Treasury Stock, Common (500 shares, at cost)7,500″
Stockholders’ Equity
|
|
|
Common stock, $10 par value
|
200000
|
|
Additional paid in capital
|
100000
|
|
Total paid in capital
|
|
300000
|
Retained Earnings
|
|
15000
|
Less: Treasury
|
|
(7500)
|
Total Stockholders’ Equity
|
|
307500
|
SE6
” Sigma Company is authorized to issue 100,000 shares of common stock. The com-pany sold 5,000 shares at $12 per share. Prepare journal entries to record the sale of stock for cash under each of the following independent alternatives: (1) The stock has a par value of $5, and (2) the stock has no par value but a stated value of $1 per share.”
No
|
General Journal
|
Debit
|
Credit
|
1
|
Cash
|
$60,000
|
|
|
Common stock
|
|
$25,000
|
|
Paid in capital in excess of par – common
|
|
$35,000
|
|
(To record issue of shares for cash)
|
|
|
2
|
Cash
|
$60,000
|
|
|
Common stock
|
|
$5,000
|
|
Paid in capital in excess of stated- common
|
|
$55,000
|
|
(To record issue of shares for cash)
|
|
|
SE8
“Se8. Prepare the journal entries necessary to record Dao Company’s following stock transactions during 2014:Oct.1Purchased 2,000 shares of its own $2 par value common stock for $20 per share, the current market price.1721Sold 500 shares of treasury stock purchased on October 1 for $25 per share.Sold 800 shares of treasury stock purchased on October 1 for $18 per share.”
|
Journal Entries
|
|
|
Date
|
Particulars
|
Debit ($)
|
Credit ($)
|
01-Oct
|
Treasury Stock-Common 2000 shares $ 20 per share
|
40000
|
|
|
To cash
|
|
40000
|
|
(Acquired 2000 shares of treasury stock at $ 20 per share)
|
|
|
|
|
|
|
17-Oct
|
Cash 500 shares $ 25 per share
|
12500
|
|
|
To Treasury Stock- Common 500 shares$ 20
|
|
10000
|
|
To Treasury Stock- Common 500 shares$ 20
|
|
10000
|
|
To Paid in capital- Treasury Stock (500 shares * $ 5)
|
|
2500
|
|
(Reissued 500 shares of treasury stock at $ 25, acquired at cost of $ 20 per share)
|
|
|
|
|
|
|
21-Oct
|
Cash 800 shares$ 18 Per Share
|
14400
|
|
|
Paid in capital- Treasury Stock 800 shares 2
|
1600
|
|
|
To Treasury Stock- Common 800 shares $ 20
|
|
16000
|
SE10
“Se10. Leon Corporation has authorized 400,000 shares of $1 par value common stock, of which 320,000 are issued and 280,000 are outstanding. On May 15, the board of directors declared a cash dividend of $0.20 per share, payable on June 15 to stockhold-ers of record on June 1. Prepare the entries using T accounts, as necessary, for each of the three dates”
May 15,
Debit Cash Dividends (280,000*$0.20) $56,000
Credit Dividends payable $56,000
June 01,
No Journal Entry
June 15,
Debit Dividends payable $56,000
Credit Cash $56,000
SE12
“Se10. Leon Corporation has authorized 400,000 shares of $1 par value common stock, of which 320,000 are issued and 280,000 are outstanding. On May 15, the board of directors declared a cash dividend of $0.20 per share, payable on June 15 to stockhold-ers of record on June 1. Prepare the entries using T accounts, as necessary, for each of the three dates”
Stockholder’s equity
|
|
Paid in capital
|
|
Common Stock 400000 Share authorized, 375000 Share issued and outstanding, 3 per share
|
1125000
|
Additional paid in capital
|
3000000
|
Total paid in capital
|
4125000
|
Retained earnings
|
3250000
|
Total Stockholder’s equity
|
7375000
|
|
|
