Business, 15.04.2020 23:06 nnaomii

During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock.

Jan. 10 Issued 80,000 shares for cash at $6 per share.
Mar. 1 Issued 5,000 shares to attorneys in payment of a bill for $35,000 for services rendered in helping the company to incorporate.
July 1 Issued 30,000 shares for cash at $8 per share.
Sept. 1 Issued 60,000 shares for cash at $10 per share.

(a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share.

(b) Prepare the journal entries for these transactions, assuming that the common stock is no-par with a stated value of $3 per share

Answers: 2

Show answers

Answers

Answer from: Mdaulton1182

(a)

Jan 10

Debit: Cash $480,000

Credit: Common Stock $400,000

Credit: Paid in Capital $80,000

Mar 1

Debit: Accounts Payable $35,000

Credit: Common Stock $25,000

Credit: Paid in Capital $10,000

July 1

Debit: Cash $240,000

Credit: Common Stock $150,000

Credit: Paid in Capital $90,000

Sept 1

Debit: Cash $600,000

Credit: Common Stock $300,000

Credit: Paid in Capital $300,000

(b)

Jan 10

Debit: Cash $480,000

Credit: Common Stock $240,000

Credit: Additional Paid in Capital $240,000

Mar 1

Debit: Accounts Payable $35,000

Credit: Common Stock $15,000

Credit: Additional Paid in Capital $20,000

July 1

Debit: Cash $240,000

Credit: Common Stock $90,000

Credit: Additional Paid in Capital $150,000

Sept 10

Debit: Cash $600,000

Credit: Common Stock $180,000

Credit: Additional Paid in Capital $420,000

Explanation:

(a)

Jan 10

Debit: Cash (80,000 shares x $6 per share) $480,000

Credit: Common Stock (80,000 shares x $5 per share) $400,000

Credit: Paid in Capital (80,000 shares x $1 per share) $80,000

To Record Issuance of 80,000 shares at $6 per share par value.

Mar 1

Debit: Accounts Payable (5,000 shares x $7 per share) $35,000

Credit: Common Stock (5,000 shares x $5 per share) $25,000

Credit: Paid in Capital (5,000 shares x $2 per share) $10,000

To Record Issuance of 5,000 shares at $7 per share and excess paid in Capital in terms of Par Value to attorneys in payment of a bill.

July 1

Debit: Cash (30,000 shares x $8 per share) $240,000

Credit: Common Stock (30,000 shares x $5 per share) $150,000

Credit: Paid in Capital (30,000 shares x $3 per share) $90,000

To Record Issuance of 30,000 shares at $8 per share par value.

Sept 1

Debit: Cash (60,000 shares x $10 per share) $600,000

Credit: Common Stock (60,000 shares x $5 per share) $300,000

Credit: Paid in Capital (60,000 shares x $5 per share) $300,000

To Record Issuance of 60,000 shares at $10 per share par value.

(b)

Jan 10

Debit: Cash (80,000 shares x $6 per share) $480,000

Credit: Common Stock (80,000 shares x $3 per share) $240,000

Credit: Additional Paid in Capital (80,000 shares x $3 per share) $240,000

To Record Issuance of 80,000 shares of no-par common stock with $3 stated value for $6 per share.

In the above scenario, the legal capital of company would be $240,000, because no-par common stock has a stated value.

Mar 1

Debit: Accounts Payable (5,000 shares x $7 per share) $35,000

Credit: Common Stock (5,000 shares x $3 per share) $15,000

Credit: Additional Paid in Capital (5,000 shares x $4 per share) $20,000

To Record Issuance of 5,000 shares of no-par common stock with $3 stated value for $7 per share and excess paid in capital in terms of payment of a bill.

In the above scenario, the legal capital of company would be $15,000, because no-par common stock has a stated value.

July 1

Debit: Cash (30,000 shares x $8 per share) $240,000

Credit: Common Stock (30,000 shares x $3 per share) $90,000

Credit: Additional Paid in Capital (30,000 shares x $5 per share) $150,000

To Record Issuance of 30,000 shares of no-par common stock with $3 stated value for $8 per share.

In the above scenario, the legal capital of company would be $90,000, because no-par common stock has a stated value.

Sept 10

Debit: Cash (60,000 shares x $10 per share) $600,000

Credit: Common Stock (60,000 shares x $3 per share) $180,000

Credit: Additional Paid in Capital (60,000 shares x $7 per share) $420,000

To Record Issuance of 60,000 shares of no-par common stock with $3 stated value for $10 per share.

In the above scenario, the legal capital of company would be $180,000, because no-par common stock has a stated value.

Answer from: Quest

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answer from: Quest

The answer is fast food restaurants use technology designed to reduce the need for skilled labor.

Another question on Business

Business, 21.06.2019 19:10

Goals that are overly ambitious can discourage employees and decrease motivation, yet the idea of stretch goals is proposed as a way to get people fired up and motivated. as a manager, how might you decide where to draw the line between a “good” stretch goal and a “bad” one that is unrealistic?

Answers: 1

Answer

Business, 22.06.2019 09:30

Factors like the unemployment rate, the stock market, global trade, economic policy, and the economic situation of other countries have no influence on the financial status of individuals. question 1 options: true false

Answers: 1

Answer

Business, 22.06.2019 12:40

When cell phones were first entering the market, they were relatively large and reception was undependable. all cell phones were essentially the same. but as the technology developed, many competitors entered, introducing features unique to their phones. today, cell phones are only a small fraction of the size and weight of their predecessors. consumers can buy cell phones with color screens, cameras, internet access, daily planners, or voice activation (and any combination of these features). the history of the cell phone demonstrates what marketing trend?

Answers: 3

Answer

Business, 22.06.2019 15:00

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.

Answers: 3

Answer

You know the right answer?

During its first year of operations, Collin Raye Corporation had the following transactions pertaini...

Questions