Homework Stockholder’s Equity
1. Carlton Company issued 10,000 shares of common stock $1 par for $10 per share on July 10th
Required: Prepare the journal entry for the issuing of the stock
2. Fern Corporation Issued 20,000 shares of $1 par common stock at $15 per share on June 15th.
Required: Prepare the journal entry for the issuing of the stock
3. Smith Corporation issued 20,000 shares of preferred stock on August 3, 2020 for $40,000 cash.
Required: Prepare the journal entry for the issuing of the stock
4. Jones Corporation declared a $50,000 cash dividend on June 1st payable to owners of record of July 1st on August 1st.
Required: Prepare the appropriate journal entries.
5. Acme Corporation declared a land dividend on April 15th. At the declaration date the land had a book value of $100,000 and a fair market value of $150,000. The land is distributable to owners of record of May 15th on June 15th.
Required: Prepare the appropriate journal entries.
6. Marigold Company declared a 10% common stock dividend on July 1st, to owners of record of August 1st, distributable on September 1st. The Common stock has a par value of $1 and a market value of $30. here are 200,000 shares issued and outstanding.
Required: Prepare the appropriate journal entries.
7. Rose Company declared a 40% common stock dividend on July 1st, to owners of record of August 1st, distributable on September 1st. The Common stock has a par value of $1 and a market value of $50. There are 500,000 shares of stock issued and outstanding.
Required: Prepare the appropriate journal entries.
8. Taylor Company purchased treasury stock for $200,000 0n June 1st-. They sold the treasury shares on July 31st for $$180,000. Taylor does not have an additional paid in capital account. Prepare the required journal entries.
9. Farmer Corporation purchased treasury stock on August 8th for $300,000. They sold the shareson for $ 350,000 on September 9th. Prepare the required journal entries.
10. Watson Corporation purchased treasury stock on June 26thfor $ 75,000. They sold the treasury shares for $60,000 on October 11th. Watson has sufficient additional paid in capital to absorb the loss. Prepare the appropriate journal entries.
Stockholder’s equity is a crucial component of a company’s financial structure, representing the residual interest in the assets of an entity after deducting liabilities. Transactions related to stock issuance, dividends, and treasury stock significantly impact a company’s equity accounts. This essay provides a detailed analysis of the journal entries for various stockholder’s equity transactions.
On July 10th, Carlton Company issued 10,000 shares of common stock with a par value of $1 at $10 per share. The journal entry for this transaction would be as follows:
Cash 100,000
Common Stock (10,000 x $1) 10,000
Additional Paid-in Capital 90,000
Fern Corporation issued 20,000 shares of $1 par common stock at $15 per share on June 15th. The corresponding journal entry is:
Cash 300,000
Common Stock (20,000 x $1) 20,000
Additional Paid-in Capital 280,000
Smith Corporation issued 20,000 shares of preferred stock for $40,000 in cash on August 3, 2020. The journal entry is:
Cash 40,000
Preferred Stock 40,000
On June 1st, Jones Corporation declared a $50,000 cash dividend, payable on August 1st to owners of record on July 1st. The journal entries are as follows:
Retained Earnings 50,000
Dividends Payable 50,000
On August 1st, when the dividend is paid:
Dividends Payable 50,000
Cash 50,000
Acme Corporation declared a land dividend on April 15th, with a fair market value of $150,000 and a book value of $100,000. The journal entry for this declaration is:
Retained Earnings 50,000
Land Dividend 50,000
On June 15th, when the land dividend is distributed:
Land Dividend 100,000
Common Stock (par value) 20,000
Additional Paid-in Capital 80,000
Marigold Company declared a 10% common stock dividend on July 1st, with a market value of $30 per share. The journal entry for this declaration is:
Retained Earnings 60,000
Common Stock Dividend 20,000
Additional Paid-in Capital 40,000
On September 1st, when the common stock dividend is distributed:
Common Stock Dividend 20,000
Common Stock (par value) 20,000
Rose Company declared a 40% common stock dividend on July 1st, with a market value of $50 per share. The journal entry for this declaration is:
Retained Earnings 200,000
Common Stock Dividend 200,000
On September 1st, when the common stock dividend is distributed:
Common Stock Dividend 200,000
Common Stock (par value) 200,000
Taylor Company purchased treasury stock for $200,000 on June 1st and sold the treasury shares for $180,000 on July 31st. The journal entries are:
On June 1st, when the treasury stock is purchased:
Treasury Stock 200,000
Cash 200,000
On July 31st, when the treasury shares are sold:
Cash 180,000
Treasury Stock 200,000
Additional Paid-in Capital 20,000
Farmer Corporation purchased treasury stock for $300,000 on August 8th and sold the shares for $350,000 on September 9th. The journal entries are:
On August 8th, when the treasury stock is purchased:
Treasury Stock 300,000
Cash 300,000
On September 9th, when the treasury shares are sold:
Cash 350,000
Treasury Stock 300,000
Additional Paid-in Capital 50,000
Watson Corporation purchased treasury stock for $75,000 on June 26th and sold the treasury shares for $60,000 on October 11th. The journal entries are:
On June 26th, when the treasury stock is purchased:
Treasury Stock 75,000
Cash 75,000
On October 11th, when the treasury shares are sold:
Cash 60,000
Treasury Stock 75,000
Additional Paid-in Capital 15,000
In conclusion, stockholder’s equity transactions significantly impact a company’s financial position. Properly recording these transactions through accurate journal entries ensures transparency and accountability in a company’s financial reporting, enabling stakeholders to make informed decisions. These entries also demonstrate the complexity of equity-related activities and the need for precise accounting practices.
As a renowned provider of the best writing services, we have selected unique features which we offer to our customers as their guarantees that will make your user experience stress-free.
Unlike other companies, our money-back guarantee ensures the safety of our customers' money. For whatever reason, the customer may request a refund; our support team assesses the ground on which the refund is requested and processes it instantly. However, our customers are lucky as they have the least chances to experience this as we are always prepared to serve you with the best.
Plagiarism is the worst academic offense that is highly punishable by all educational institutions. It's for this reason that Peachy Tutors does not condone any plagiarism. We use advanced plagiarism detection software that ensures there are no chances of similarity on your papers.
Sometimes your professor may be a little bit stubborn and needs some changes made on your paper, or you might need some customization done. All at your service, we will work on your revision till you are satisfied with the quality of work. All for Free!
We take our client's confidentiality as our highest priority; thus, we never share our client's information with third parties. Our company uses the standard encryption technology to store data and only uses trusted payment gateways.
Anytime you order your paper with us, be assured of the paper quality. Our tutors are highly skilled in researching and writing quality content that is relevant to the paper instructions and presented professionally. This makes us the best in the industry as our tutors can handle any type of paper despite its complexity.
Recent Comments