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
Bond [772]
3 years ago
8

Ayayai Corporation is authorized to issue 46,000 shares of $5 par value common stock. During 2020, Ayayai took part in the follo

wing selected transactions. 1. Issued 5,000 shares of stock at $49 per share, less costs related to the issuance of the stock totaling $5,400. 2. Issued 1,200 shares of stock for land appraised at $46,000. The stock was actively traded on a national stock exchange at approximately $50 per share on the date of issuance. 3. Purchased 480 shares of treasury stock at $44 per share. The treasury shares purchased were issued in 2016 at $41 per share. (a) Prepare the journal entry to record item 1. (b) Prepare the journal entry to record item 2. (c) Prepare the journal entry to record item 3 using the cost method.
Business
1 answer:
trapecia [35]3 years ago
4 0

Question:

Ayayai Corporation is authorized to issue 46,000 shares of $5 par value common stock. During 2020, Ayayai took part in the following selected transactions.

1. Issued 5,000 shares of stock at $49 per share, less costs related to the issuance of the stock totaling $5,400.

2. Issued 1,200 shares of stock for land appraised at $46,000. The stock was actively traded on a national stock exchange at approximately $50 per share on the date of issuance.

3. Purchased 480 shares of treasury stock at $44 per share. The treasury shares purchased were issued in 2016 at $41 per share.

(a) Prepare the journal entry to record item 1.

(b) Prepare the journal entry to record item 2.

(c) Prepare the journal entry to record item 3 using the cost method.

Answer:

a.

Cash = $239,600

Common Stock = $25,000

Paid in Capital = $214,000

b.

Land: = $60,000

Common Stock: = $6,000

Paid in Capital = $54,000

c.

Treasury Stock: $21,120

Cash: $21,500

Explanation:

a.

Cash

Cash is calculated as: 5,000 shares * $49 market price/share – $5,400 of issue costs]

Cash = $239,600

Common Stock

Common Stock is calculated as: 5,000 shares * $5 par value/share

Common Stock = $25,000

Paid-in Capital in Excess of Par - Common Stock

This is calculated by: Cash - Common Stock = $239,000 - $25,000

Paid in Capital = $214,000

b.

Land:

Land is calculated as 1,200 shares * $50 market price/share = $60,000

Common Stock:

Common Stock is calculated as: 1,200 shares * $5 par value/share = $6,000

Paid-in Capital in Excess of Par - Common Stock

This is calculated by: Land - Common Stock = $60,000 - $6,000

Paid in Capital = $54,000

c. Treasury Stock is calculated as:

480 stocks * $44 cost per share

= $21,120

Cash: $21,500

You might be interested in
Using the data in EA-3, assume that Slick Rocks management purchased the Sandstone stock for the trading securities portfolio in
vitfil [10]

The journal entry for the purchase of the stock for the trading securities portfolio is that Securities account debited and bank account credited.

Given that Slick Rocks management purchased the Sandstone stock for the trading securities portfolio instead of the available-for-sale securities portfolio.

We are required to form the journal entry that are required by the facts presented in the case.

A journal is basically a detailed account which records all the financial transactions of a business to be used for the future reconciling of accounts.

The journal entry will be as under:

Securities account debited and bank account credited. If we know that which security is being purchased then we can name that securities also.

Hence the journal entry for the purchase of the stock for the trading securities portfolio is that Securities account debited and bank account credited.

Learn more about journal at brainly.com/question/14279491

#SPJ4

6 0
1 year ago
High self-monitors respond more to _____ advertising.
scZoUnD [109]

The answer is image oriented advertising. This type of advertising tends to focus more on the products of which they assume of which are more presentable and are favorable for their consumers that will be worth trying or buying of by the consumers.

6 0
3 years ago
Which of the following are arguments that are given to support trade barriers?
Roman55 [17]

Answer:

E To prevent dumping

Explanation:

There are several arguments that are given to support trade barriers; one of which is to prevent dumping. A country would place embargo on imports with respect to some of the goods that are produced in her country. This is to enable and encourage local production of such goods. Where a country permits importation of goods that are produced locally, such action could being down the efforts of local production ; hence local industries might not thrive in terms of production.

Also, placing embargo on the importation of goods that are produced locally in a country would take away the possibility of making the country for dumping ground in terms of goods that are not up to standard, produced in a foreign country and same would have been imported.

5 0
3 years ago
Discuss the rationale of organizing an industrial strike in resolving employee dispute with the state, focusing on the detriment
WINSTONCH [101]

Answe

Explanation:

Discuss the rationale of organizing an industrial strike in resolving employee dispute with the state, focusing on the detrimental effects strikes has on various stakeholders in an economy

6 0
3 years ago
What is the income threshold for self-employed workers to file a tax return.
Stolb23 [73]

Answer:

$400 or more

Explanation:

6 0
2 years ago
Other questions:
  • Explain how demand for a good can affect demand for a related good.
    11·1 answer
  • Though it is seen as a last resort, bankruptcy allows a consumer to
    13·2 answers
  • The U.S. federal government can spend money in a variety of ways. For example, the government could build a major new naval trai
    12·2 answers
  • To be safe, you should ____ a. Always reduce your speed at an intersection B. Reduce your speed at an intersection if there is a
    5·1 answer
  • Which kind of norm is so deeply ingrained that the very thought of breaking it brings feelings of disgust or horror?
    15·1 answer
  • In 2000, a star major-league baseball player signed a 10-year, $266 million contract with the Texas Rangers. Assume that equal p
    14·1 answer
  • Falconer Company had net (after-tax) income last year of $14,107,956 and total capital employed of $131,869,720. Falconer's actu
    12·1 answer
  • Research depicts the typical saturn dirt bike shopper as a middle-aged person with an income of $75,000 per annum. this is an ex
    6·1 answer
  • Why do central banks play an important role in the global economy?
    14·1 answer
  • Diana is a student studying economics and currently working on her class schedule for next semester. She decides to enroll in a
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!