VIP Corporation's first year of operations had the following transactions: 2020 Jan. 15 Issued 2,000 common shares to the corporation's promoters in exchange for their efforts in creating it. Their efforts are estimated to be worth $31,000. Feb. 21 12,500 common shares were issued for cash of $14 per share. Mar. 9 6,000 preferred shares were issued for cash totalling $108, 100. Aug. 15 55,000 common shares were issued in exchange for land, building, and equipment with appraised values of $310,000, $415,000, and $107,000, respectively. Required: Prepare journal entries.

VIP Corporation's first year of operations had the following transactions: 2020 Jan. 15 Issued 2,000 common shares to the corporation's promoters in exchange for their efforts in creating it. Their efforts are estimated to be worth $31,000. Feb. 21 12,500 common shares were issued for cash of $14 per share. Mar. 9 6,000 preferred shares were issued for cash totalling $108, 100. Aug. 15 55,000 common shares were issued in exchange for land, building, and equipment with appraised values of $310,000, $415,000, and $107,000, respectively. Required: Prepare journal entries.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
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Mainland Resources Inc. began operations on June 5, 2023. 2023 June 5 Gave 4,000 common shares to the organizers of the corporation in exchange for accounting and legal services valued at $83,800. 15 Received $21 cash per share for the issuance of 68,000 common shares. 16 Issued 10,000 preferred shares for cash of $32 per share. 17 8,000 common shares were issued to a creditor who was owed $123,000. 18 The board of directors declared a cash dividend of $18,800 on the preferred shares and $4,300 on the common shares to shareholders of record on June 20, payable July 1. 30 143,000 common shares were issued in exchange for machinery with a fair market value of $2,345,000. The shares were actively trading on this date at $15.00 per share. July 1 The dividends declared on June 18 were paid. Required: Journalize the above equity transactions that occurred during the first month of operations. Cash dividend account is used for declaring dividends. View transaction list Journal entry worksheet…
Mainland Resources Inc. began operations on June 5, 2023. 2023 June 5 Gave 4,000 common shares to the organizers of the corporation in exchange for accounting and legal services valued at $85,500. 15 Received $23 cash per share for the issuance of 85,000 common shares. 16 Issued 10,000 preferred shares for cash of $49 per share. 17 8,000 common shares were issued to a creditor who was owed $140,000. 18 The board of directors declared a cash dividend of $20,500 on the preferred shares and $6,000 on the common shares to shareholders of record on June 20, payable July 1. 30 160,000 common shares were issued in exchange for machinery with a fair market value of $2,920,000. The shares were actively trading on this date at $17.00 per share. July 1 The dividends declared on June 18 were paid. Required: Journalize the above equity transactions that occurred during the first month of operations. Cash dividend account is used for declaring dividends. View transaction list Journal entry worksheet…
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