Professional Documents
Culture Documents
Common Stock
Additional Paid-in Capital
Retained Earnings
Total
11%
1)
Paid
Preferred
Common
2)
Purchased
Common
3)
Reissued
Land
4)
Issued
5)
Declared
6)
7)
Declared Annual
Payable in next year
Journal Entries
1)
2)
Treasury Stock
Cash
3)
Land
Treasury Stock
Paid-in Capital from Treasury Stock
4)
Cash
Preferred Stock
Paid-In Captial in Excess of Par - Preferred Stock
5)
Retained Earnings
Common Stock Dividend Distributable
Paid-In Capital in Excess of Par - Common Stock
6)
Common Stock
7)
Retained Earnings
Dividends Payable - Preferred Stock
Dividends Payable - Common Stock
Stockholder Equity
Captial Stock
Preferred
Common
Total Capital Stock
Additional Paid-IN
Total Paid-IN Capital
Retained Earnings
Total Paid-IN Cap & RE
less: Treasury Stock
Total Stockholders' Equ.
100 par
5 Par
Authorized
Authorized
10000 Issued
118050 Issued
11 per share
4 per share
23320
94440
1600 shares
39 per share
62400
2120
23610
116450
690 Treasury
31650
510 Preferred
55080
Net Income
10% Dividend
Common Stock
23320
94440
117760
62400
62400
31650
26910
4740
55080
51000
4080
104420
11350
93070
11350
46 per share
Preferred
Common
Tresasury Stock
Add Paid
Retained Earnings
11350
128810
28930
99880
263000
129400
392400
227990
620390
587670
1208060
35490
1172570
212000
118050
126100
473700
929850
22700
2270
347200
Outstanding
2630
24970
263000
129400
35490
227990
587670
Preferred Stock
Authorized
Common Stock
Authorized
10580
8%
535000
2
10-Jan Issued
1-Mar Issued
1-Apr Issued
1-May Issued
1-Aug issued
1-Sep Issued
1-Nov Issued
General Journal
10-Jan Cash
Common Stock
Paid-In Capital in Excess of Stated Value - Common Stock
1-Mar Cash
Preferred Stock
Paid-in Capital in Excess of Par - Preferred Stock
1-Apr Land
Common Stock
Paid-In Capital in Excess of Stated Value - Common Stock
1-May Cash
Common Stock
Paid-in Capital in Excess of Stated Value - Common Stock
1-Aug Organiation Expense
Common Stock
Paid-in Capital in Excess of Stated Value - Common Stock
1-Sep Cash
Common Stock
Shares
Preferred
10580
71 par
Common
535000
5610
1810
per share no
par
3160 RM
OS
6 per share
7420
328780
8 per share
10 per share
eneral Journal
483060
161020
322040
633930
398310
235620
80510
48080
32430
644080
161020
483060
50360
21160
29200
105800
21160
OS
84640
208150
128510
79640
Common
80510
24040
80510
10580
10580
RM
206220
500 Shares
100 Shares
10
107
a) Prepare the jounral entry for the issuance when the Market Price of the Common Share is
b) Prepare the jounral entry for the issance when only the market price of the common stock is kno
Lump Sum
Par- Common
Par- Preferred
109000
5000
10700
15700
FV of Common
FV of Preferred
84000
21300
105300
Allocated to Common
Allocated to Preferred
86952
22048
109000
a)
Cash
Common Stock
Paid-in Capital in Excess of Par- Common Stock
Preferred Stock
Paid-in Capital in Excess of Par- Preferred Stock
109000
b)
Cash
Common Stock
Paid-in Capital in Excess of Par- Common Stock
Preferred Stock
Paid-in Capital in Excess of Par- Preferred Stock
109000
109000
mon Share is
ommon stock is known and it is
Lump-sum Receipt
Allocated to Common
Balance Allocated to Preferred
Paid in Capital in Excess of Par- Common Stock
Paid-in Capital in Excess of Par- Preferred Stock
5000
81952
10700
11348
5000
88300
10700
5000
109000
93300
15700
88300
5000
213
each.
53300
Authorized to Issue
1)
2)
3)
4 per share
Purchased
5470
54
1420 for land
530
a)
Cash
Common Stock
Paid-in Capital in Excess of Par- Common Stock
287400
b)
Land
Common Stock
Paid-in Capital in Excess of Par- Common Stock
78100
c)
Treasury Stock
Cash
22260
Common Stock
21880
265520
5680
72420
22260
Preferred
Common
67020
3700
11170
52100
266400
370000
1184020
100 par
9 par
103600
1117000
468900
Paid-In Capital
67020 Preferred Stock
Paid-In Capital in Excess of Par- Preferred
6%
Preferred Stock
Common
Pain-in Excess of Par- Common
1117000
67020
8
106
370000
266400
103600
5-Jan Cumulative
Common Stock
nonparticipating
54000
11-Jan Issued
21920
241120
1-Feb Issued
4700
Equipment
Factory
Land
488800
29-Jul Purchased
10-Aug sold
31-Dec declared
31-Dec Closed
Capital Stock
Preferred Stock
Common Stock
Total Capital Stock
Additional Paid-in Capital
Paid-in Capital in Excess- Preferred Stock
Paid-in Capital in Excess- Common Stock
Total Paid-in Capital
Retained Earnings
Total Stockholders' Equity
1860
1860
0.45
Income Summary
Net Income
69120
131520
Preferred Stock
5300
104 Par
7%
11 Par
Common Stock
11-Jan
17 per share
372640
1-Feb
Preferred
FV
FV
Apprised Value
59320
172800
325800
557920
44080
29-Jul
Common
19 per share
35340
treasury
9864
34216
10-Aug
13 per share
24180
common dividend
preferred dividend
31-Dec
38584
31-Dec
180440
488800
241120
729920
200640
930560
125200
1055760
Cash
Common Stock
Paid-In Capital in Excess-Common Stock
372640
Equipment
Buildings
Land
Preferred Stock
Paid-in Capital in Excess- Preferred Stock
59320
172800
325800
241120
131520
488800
69120
Treasury Stock
Cash
35340
Cash
Retained Earnings
Treasury Stock
24180
11160
Retained Earnings
Dividends Payable
44080
Income Summary
Retained Earnings
180440
35340
35340
44080
180440
Preferred
Common
20
5
Preferred Stock
Common Stock
Paid-In Capital in Excess of Par- Preferred Stock
Paid-In Capital in Excess of Par- Common Stock
Retained Earnings
8%
156300
2088000
207500
27790000
4539000
1-Jan Preferred
38000
1-Feb Common
58900
1-Jun Split
2-for-1
1-Jul Common
35100
15-Sep
10400 Treasury
31-Dec Preferred
Common
0.45
31-Dec Net Income
2186000
Preferred Stock Excess
3126000
207500
760000
114000
3886000
321500
Common
Excess
10440000 27790000
294500
942400
10734500 28732400
Retained
4539000
-310880
-1921095
2186000
4493025
Treasury
Excess
351000
20800
-104000
247000
20800
3126000
10440000
250080
23
21
Par
2.5
Treasury
10 per share
12 per share
250080
939600
Capital Stock
Preferred Stock
Common Stock
Total Capital Stock
Additional Paid-in Capital
Paid-in Capital in Excess- Preferred
Paid-in Capital in Excess- Common
Paid-in Capital from Treasury
Total Paid-in Capital
Retained Earnings
Total Paid-in Capital and Retained Earnings
Less: Treasury Stock
Total Stockholders' Equity
3886000
10734500
14620500
321500
28732400
20800
29074700
43695200
4493025
48188225
247000
47941225
Assets
Current Assets
Equity Investments
Equipment (net)
Intangibles
Total Assets
ABC Stock
$22,800
$113,900
$167,070
Dividend.
1 Share
ABC is selling for
Change
Amount
Decrease
$9,120
No Effect
No Effect
Decrease
$9,120
Decrease
$9,120
3 for
Change
Amount
No Effect
Common Stock
Paid-in Capitial in Excess of Par
Retained Earnings
Total Stockholders' Equity
No
No
No
No
Effect
Effect
Effect
Effect
$48,900
$42,840
$255,100
$60,730
$407,570
$4
$103,800
4560
$303,770
$407,570
arket Price is
arket Price is