1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
IRISSAK [1]
3 years ago
11

DeLong Corporation was organized on January 1, 2017. It is authorized to issue 14,500 shares of 8%, $100 par value preferred sto

ck, and 450,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year.
Jan. 10 Issued 84,500 shares of common stock for cash at $6 per share.
Mar. 1 Issued 5,150 shares of preferred stock for cash at $110 per share.
Apr. 1 Issued 23,500 shares of common stock for land. The asking price of the land was $91,000. The fair value of the land was $81,500.
May 1 Issued 84,000 shares of common stock for cash at $5.00 per share.
Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $39,500 for services performed in helping the company organize.
Sept.1 Issued 11,500 shares of common stock for cash at $7 per share.
Nov. 1 Issued 2,000 shares of preferred stock for cash at $111 per share.
Journalize the transactions.
Business
1 answer:
DanielleElmas [232]3 years ago
5 0

Answer:

Jan. 10

Cash $507,00 (debit)

Common Stock $507,00 (credit)

Mar 1

Cash $566,500 (debit)

Preferred Sock $515,000  (credit)

Share Premium : Preferred Stock $51,500 (credit)

April 1

Land $91,000 (debit)

Common Stock $91,000 (credit)

May 1

Cash $420,000 (debit)

Common Stock $420,000 (credit)

Aug 1

Legal Expenses : Attorneys bill $39,500 (debit)

Common Stock $39,500 (credit)

Sept 1

Cash $80,500 (debit)

Common Stock $80,500 (credit)

Nov 1

Cash $222,000 (debit)

Preferred Sock $200,000  (credit)

Share Premium : Preferred Stock $22,000 (credit)

Explanation:

<u>Common Stocks are at no par value:</u>

This means that ,

1.When Common Stocks are Issued, the value is the issue price there is no share premium reserve on it.

2. For consideration paid in Common Stocks, value of stocks would be the same as the cost at initial recognition. For example the Purchase of Land on April 1. Initial recognition is at Asking Price of $91,000. Hence common stocks are issued at $91,000.

<u>Preference Stocks are at $100 par</u>

This means that,

1.Any issue of Preference Stock made in excess of par value is accounted in the Preference Share Premium Reserve.

You might be interested in
These were kane's only temporary differences. in kane's 2021 income statement, the deferred portion of its provision for income
fomenos

These were Kane's best brief variations. in Kane's 2021 income statement, the deferred portion of its provision for earnings taxes must be $a hundred thirty-five,600.

An income tax is an instantaneous tax that a central authority levy on the income of its residents. The earnings Tax Act, 1961, mandates that the significant government acquire this tax. The authorities can change the income slabs and tax charges every year in its Union finances. income does now not best imply cash earned in the form of earnings.

Any Indian citizen elderly beneath 60 years is prone to pay earnings tax if their earnings exceed 2.5 lakhs. If the person is above 60 years of age and earns greater than Rs. three lakhs, they'll pay taxes to the authorities of India.

Income taxes are a source of revenue for governments. they're used to fund public services, pay authorities' responsibilities, and provide goods for residents.

Learn more about Income taxes here:

brainly.com/question/26316390

#SPJ4

5 0
1 year ago
Select the correct answer.
Lapatulllka [165]

Answer:

B. equity financing

Explanation:

Equity financing involves giving up part of the company because it will have to be shared with the partners of the organization who are usually the investors.

5 0
3 years ago
Discuss any four ways in which Specialization has
pishuonlain [190]

Answer:

Specialization has helped in these four ways:

1. Has created economics of scale in Nigeria, which improve economic efficiency and increase output while reducing average costs at the same time.

2. Has improved the agricultural sector, which continues to be very important for the Nigerian economy.

3. Has helped bring the electrification of the country.

4. Has helped raise the standard of living in the country, because in general terms, the larger the economy, the higher the standard of living.

4 0
2 years ago
At the beginning of July, CD City has a balance in inventory of $2,850. The following transactions occur during the month of Jul
myrzilka [38]

Answer:

Inventory  1750 debit

Accounts Payable  1,750 credit

--to record purchase--  

Inventory  120 debit

Cash  120 credit

--to record payment of freights--  

Accounts Payable 400 debit

Inventory  400 credit

--to record returned goods--  

Accounts Payable 1350 debit

Inventory             27 credit

Cash          1323 credit

--to record payment within discount--  

 

Accounts Receivables 4700  debit

Sales Revenues  4700 credit

--to record sale--  

COGS  2450  debit

Inventory  2450 credit

--to record COGS of the previous sale--  

Cash  4700  debit

Accounts Receivables  4700 credit

--to record collection in full amount--  

Inventory  2550 debit

Accounts Payable  2550 credit

--to record purchase--  

Accounts Receivables 3650 debit

Sales Revenues  3650 credit

--to record sale--  

COGS  1950 debit

Inventory  1950 credit

--to record COGS of the previous sale--

Accounts Payable 190 debit

Inventory  190 credit

--to record returned goods--  

Accounts Payable 2360 debit

Inventory    47.2 credit

Cash        2312.8 credit

--to record payment within discount--  

Explanation:

We reocrd each entry assuming the basic accounting principles

debit = credit

<u>first purchase balance:</u>

1,750 less 400 return = 1,350

discount 1,350 x 2% = 27

cash outlay 1,350 - 27 = 1,323

<u>second purchase balance:</u>

2,550 less 190= 2,360 balance

discount 2,360 x 2% discount = 47.20

cash outlay 2,360 - 47.20 =  2312.8

4 0
3 years ago
In you opinion, what is a business?
gayaneshka [121]

Answer:

a business is a organazation organized by a single perons or group in order to propfit from the business to grow the business to become susceful. Many Buisness are created everyday for example: Online businesses , You-Tube Channels, Inst-agram Accounts, Sound-Cloud rappers,etc. Some business may be more effecient that others. Business is an organization where people work together. In a business, people work to make and sell products or services. ... A business can earn a profit for the products and services it offers. The word business comes from the word busy, and means doing things. It works on regular basis.

7 0
3 years ago
Other questions:
  • Tower Corp. had the following stock outstanding and Retained Earnings at December 31, 2018: Common Stock (par $8; outstanding, 3
    14·1 answer
  • Why might individuals want to participate in the financial market?
    7·2 answers
  • Nature's Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef's salad selling for $7
    9·1 answer
  • How to enroll in college after dropping out?
    13·2 answers
  • Radoski Corporation's bonds make an annual coupon interest payment of 7.35% every year. The bonds have a par value of $1,000, a
    11·1 answer
  • A referee at an american football game issues a decision against the red team and in favor of the blue team. a controversy ensue
    9·1 answer
  • What are yeezys made out of?
    11·2 answers
  • What can provide key data so you can develop a marketing plan that works?
    12·2 answers
  • Optimizing economic agents use the real interest rate when thinking about the economic costs and returns of a loan. Suppose the
    5·1 answer
  • Selected financial data for Spark Enterprises follows for a production level of 120,000 units: (4 points) Total fixed costs $300
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!