Rogrer Company received a machine with a fair value of $130,000 and a building with a fair value of $200,000 in exchange for 6,000 shares of $45 par value common stock and $50,000 cash. The entry to record this transaction would include: Select one: a. Credit to Common Stock for $280,000 b. Credit to Additional Paid in Capital for $10,000 c. Credit to Retained earnings for $10,000 d. Credit to Additional Paid in Capital for $280,000

Rogrer Company received a machine with a fair value of $130,000 and a building with a fair value of $200,000 in exchange for 6,000 shares of $45 par value common stock and $50,000 cash. The entry to record this transaction would include: Select one: a. Credit to Common Stock for $280,000 b. Credit to Additional Paid in Capital for $10,000 c. Credit to Retained earnings for $10,000 d. Credit to Additional Paid in Capital for $280,000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter20: Corporations: Organization And Capital Stock

Section: Chapter Questions

Problem 1CP: Prepare general journal entries for the following transactions, identifying each transaction by...

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The following transactions related to Almas Co. Ltd.1. The Company offered 50,000 shares of Rs. 10 each at Rs. 14. The Companyreceived application for 63,000 shares. The Company finalized the allotment and theexcess money was refunded.3. The Company purchased land worth 5,00,000 and issued 45,000 shares of Rs. 10each to vendor.4. The Company purchased machine and in consideration there of issued 16,000share of Rs. 10 each. The market price of the share was Rs. 12.50.5. The Company issued 2,000 debentures of Rs. 100 each at per repayable after fiveyears at 5% redemption premium.6. The Company issued 1,000 debentures of Rs.100 each at Rs. 95 repayable afterfive years at Rs. 105.Required Record the above transactions in the General Journal of the Company.
Assume the following independent cases:A. At the beginning of the year, a check was issued for P400,000 as payment for a piece of land, and the buyer assumed the liability for the unpaid taxes at the end of the year, P10,000 and those assessed for the current year at P9,000.B. A company issued 14,000 ordinary shares (P10 par) with a market value of P60 per share (based upon a recent sale of 100 shares) for the land. The land was recently appraised at P800,000 by independent and competent appraisers.C. A company rejected an offer to purchase the land for P8,000,000 cash two years ago. Instead, the company issued 100,000 ordinary shares for the land (market value of the ordinary share, P78 each based on several recent large transactions and normal weekly stock trading volume).D. A company purchased land by signing a note with the seller, requiring P100,000 down payment, payment of P120,000 one year from purchase, and P80,000 three years from purchase. The note is non-interest bearing,…
Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $20 per share and the building’s book value on the books of the seller was $211,000.Which of the following journal entries is correct for Smith Company when Smith issues 11,100 shares of $10 par value common stock and pays $21,100 cash in exchange for the building? Please see picture attached.
Prepare general journal entries for the following transactions, identifying each transaction by letter: (a) Gnu Company issued 5,000 shares of 1 par common stock to the Prendergas law firm as partial payment of fees incurred to incorporate the business. Gnu was short of cash, so Prendergas agreed to accept 10,000 cash and the shares of common stock in full settlement of its bill for 55,000. (b) Gnu issued 50,000 shares of 1 par common stock in exchange for a parcel of land for building a shopping plaza. (The list price for the land was 400,000; a similar parcel in the same area sold last week for 380,000. During the past month, the price at which Gnus common stock has traded on the open market has ranged from 5 to 12 per share. Two trades occurred yesterday at 7 and 10 per share.) (c) Gnu purchased 10,000 shares of 1 par value common treasury stock for 70,000. (This is the only treasury stock that Gnu holds.) (d) Gnu sold 4,000 shares of common treasury stock for 32,000. (e) Gnu sold 5,000 shares of common treasury stock for 30,000.
John Kim agrees to contribute equipment with a fair market value of $5,000 in exchange for 100 shares of Rio Inc.'s common stock with a par value of $1 per share. Rio will record this transaction as a credit to which of the following accounts? (Check all that apply.) Cash Common Stock Equipment Paid-in Capital in Excess of Land Paid-in Capital in Excess of Par Value
A corporation received land valued at $170,000 and a building valued at $205,000 in exchange for 5,000 shares of $40 par value common stock and $100,000 cash. The entry to record this transaction includes a credit to: A) Paid-in-capital in excess of par, common stock for $175,000 B) Retained earnings for $75,000 C) Common stock for $375,000 D) Paid-in capital in excess of par-common for $75,000
Park & Company was recently formed with a $6,400 investment in the company by stockholders in exchange for common stock. The company then borrowed $3,400 from a local bank, purchased $1,140 of supplies on account, and also purchased $6,400 of equipment by paying $2,140 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are: Multiple Choice $9,800. $15,200. $12,800. $11,940.
a. A building with a book value of $400,000 was sold for $500,000 b. Additional common stock was issued for $160,000. c. Dristell purchased its own common stock as treasury stock at a cost of $75,000. d. Land was acquired by issuing a 6%, 10-year, $750,000 note payable to the seller. e. A dividend of $40,000 was paid to shareholders. f. An investment in Fleet Corp.'s common stock was made for $120,000. g. New equipment was purchased for $65,000. h. A $90,000 note payable issued three years ago was paid in full. i. A loan for $100,000 was made to one of Dristell's suppliers. The supplier plans to repay Dristell this amount plus 10% interest within 18 months. Required: Calculate net cash flows from financing activities. (Cash outflows should be indicated with a minus sign.) Net cash flows
7) Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $35 per share and the building's book value on the books of the seller was $250,000. 7) Which of the following is incorrect for Smith Company when Smith issues 10,000 shares of $10 par value common stock and pays $20,000 cash in exchange for the building? A) The building account increases by $370,000. B) The common stock account increases by $100,000. C) Stockholders' equity increases $350,000. D) The additional paid-in capital account increases by $100,000. 8) On January 1, 2019, Pyle Company purchased an asset that cost $50,000 and had no estimated residual value. The estimated useful life of the asset is 8 years and straight-line depreciation is used. An error was made in 2019 because the total amount of the asset's cost was debited to an expense account for 2019 and no depreciation was recorded. Pretax income for 2019 was $42,000. How much is the correct 2019 pretax…
Smith Company exchanges assets to acquire a building. The market price of the Smith stock on the exchange date was $38 per share and the bullding's book value on the books of the seller was $215,000. Which of the following is correct for Smith Company when Smith issues 10,000 shares of $10 par value common stock and pays $21,500 cash in exchange for the butlding? Murtiple cholce Total assets Increase $380,000. Stockholders equity increases $215.000. Total assets increase $350.500. stocknoiders' equity increases $358.500.
A Company had the following activities during the current period: Acquired investment in ordinary shares classified as FA@VTOCI for P3,000,000. Sold investment in trading securities for P4,500,000 when the carrying amount was P3,800,000. Acquired a P5,000,000 one-year certificate of deposit from a bank. During the year, interest of P400,000 was received from the bank. Collected dividends of P800,000 on investments in equity securities. In the current period statement of cash flows, net cash used in investing activities should be
Susan Company experienced the following transactions during the current year: 1.Purchased machinery for P 500,000 cash 2.Purchase land and building for P 5,500,000 cash, including an appraiser’s fee of P 100,000. An appraisal indicated fair value as follows: Land 2,000,000 and Building 3,000,000. 3.Invested in 5,000 shares of another entity at P 100 per share. Subsequently, Susan Company exchanged the 5,000 shares for a delivery Record the transactions and compute for the total PPE