/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q22E_1 Eates Corp. issued 8,000 shares ... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 13: Q22E_1 (page 712)

Eates Corp. issued 8,000 shares of no-par common stock for \(13 per share.

Requirements

1. Record issuance of the stock if the stock:

a. is true no-par stock.

b. has stated value of \)3 per share.

Short Answer

Expert verified

a. Cash debited and common stock credited by $104,000.

b. Cash debited by $104,000, common stock credited by $24,000 and

paid-in capital- in excess of par credited by $80,000.

Step-by-Step Solution

Step by step solution

01

Basic Introduction

CommonStock=NumberofShares脳ParValue=8,000脳$13=$104,000

CommonStock=NumberofShares脳StatedValue=8,000脳$3=$24,000

02

Journal entry to record issuance of stock

Date

Transaction

Debit

Credit

(a)

Cash

$104,000

Common stock

$104,000

To record issuance of the stock

(b)

Cash

$104,000

Common stock

$24,000

Paid-in capital- in excess of par

$80,000

To record issuance of the stock value $3

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Question: Journalizing a small stock dividend

Element Water Sports has 13,000 shares of \(1 par value common stock outstanding.

Element distributes a 5% stock dividend when the market value of its stock is \)15 per share.

Requirements

1. Journalize Element鈥檚 declaration of the stock dividend on August 15 and distribution on August 31.

Question: Copperhead Trust has the following classes of stock:

Preferred Stock鈥�6%, \(12 par value; 8,500 shares authorized, 7,000 shares issued and outstanding

Common Stock鈥擻)0.10 par value; 2,100,000 shares authorized, 1,400,000 shares issued and outstanding

Requirements

3. Assume the preferred stock is noncumulative and Copperhead passed the preferred dividend in 2016 and 2017. In 2018, the company declares cash dividends of $46,000. How much of the dividend goes to preferred stockholders? How much goes to common stockholders?

What does the rate of return on common stock show, and how is it calculated?

Preparing a corporate income statement

ABC Corporation鈥檚 accounting records include the following items, listed in no particular order, at December 31, 2018:

Other Income and (Expenses) \( (7,200) Cost of Goods Sold \) 30,000

Net Sales 81,000 Operating Expenses 25,000

Gain on Discontinued Operations 3,600

The income tax rate for ABC Corporation is 39%.

Prepare ABC鈥檚 income statement for the year ended December 31, 2018. Omit earnings per share. Use the multi-step format.

Journalizing dividend and treasury stock transactions, preparing a statement of retained earnings, and preparing stockholders鈥� equity

The balance sheet of Cullins Management Consulting, Inc. at December 31, 2017, reported the following stockholders鈥� equity:

Common Stock鈥擻(10 Par Value; 200,000 sharesauthorized, 22,000 shares issued and outstandingPaid-In Capital:

163,000

\) 220,000

580,000

Retained Earnings

Total Stockholders鈥� Equity \( 743,000

Stockholders鈥� Equity

Paid-In Capital in Excess of Par鈥擟ommon 360,000

Total Paid-In Capital

During 2018, Cullins completed the following selected transactions:

Feb. 6 Declared a 5% stock dividend on common stock. The market value of

Cullins鈥檚 stock was \)25 per share.

15 Distributed the stock dividend.

Jul. 29 Purchased 2,000 shares of treasury stock at \(25 per share.

Nov. 27 Declared a \)0.20 per share cash dividend on the common stock outstanding.

Requirements

1. Record the transactions in the general journal.

2. Prepare a retained earnings statement for the year ended December 31, 2018. Assume Cullins鈥檚 net income for the year was $87,000.

3. Prepare the stockholders鈥� equity section of the balance sheet at December 31, 2018.
See all solutions

Recommended explanations on Business Studies Textbooks

Managers

Read Explanation

Managerial Economics

Read Explanation

Nature of Business

Read Explanation

Project Planning & Management

Read Explanation

Insurance

Read Explanation

Business Operations

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.