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
Sergeeva-Olga [200]
2 years ago
10

Rodriguez Corporation issues 13,000 shares of its common stock for $130,900 cash on February 20.Prepare journal entries to recor

d this event under each of the following situations :1) the stock has a $8 par value.2) The stock has neither par nor stated value3) the stock has an $4 stated value.
Business
1 answer:
HACTEHA [7]2 years ago
6 0

Answer:

1. Dr cash $130,900

Cr common stock $104,000

Cr Additional paid-in capital - common stock $26,900

2.Dr cash $130,900

Cr common stock $130,900

3. Dr cash $130,900

Cr common stock $52,000

Cr Additional paid-in capital-common stock $78,900

Explanation:

1. Issuance of share above par will result to premium. In excess of par value, the premium should be credited to additional paid-in capital account. Above-mentioned issuance was issued at $130,900 while its par value is only $104,000 (13,000 x $8). Thus, it will result to a premium of $26,900(130,900 - 104,000). To entry the said transaction, we have to;

Dr cash $130,900

Cr common stock $104,000

Cr additional paid-in capital - common stock $26,900

2. Issuance of share with no par and no stated value will result to no discount or premium. Some state will allow this way of issuance, but some also will not. So to record the said transaction we have to;

Dr cash $130,900

Cr common stock $130,900

3. In the absence of par value, the company may refer to its stated value in issuing of shares. Issuance of shares above stated value will result to a premium that is to be closed to additional paid-in capital account.

•4 x 13,000 = 52,000

•130,900 - 52,000 = 78,900 (premium)

Entry:

Dr cash $130,900

Cr common stock $52,000

Cr additional paid-in capital - common stock $78,900

You might be interested in
Marilyn County operates on a calendar year basis. It uses a Capital Projects Fund to account for major capital projects and a De
mr Goodwill [35]

Answer:

Marilyn County

1. Journal Entries:

1. January 1, 2013,

Debit Capital Projects Fund $1,000,000

Credit General Obligation Bonds Payable $1,000,000

To record the issuance of bonds, payable in 20 equal semiannual installments of $50,000 over a 10-year period commencing October 1, 2013, with interest of 4 percent per annum paid on the outstanding debt.

2. May 1,

Debit Capital Projects Fund $20,000

Credit General Fund $20,000

To fund the additional project costs.

3. July 1

Debit Construction of Community Center $1,020,000

Credit Capital Projects Fund $1,020,000.

To record the payment to the contractors for completed construction of Community Center with estimated 20 years useful life.

4. September 30, 2013

Debit Debt Service Fund $70,000

Credit General Fund $70,000

To transfer funds for debt service.

5. October 1:

Debit Bonds Payable $50,000

Debit Interest on Bonds Expense $20,000

Credit Debt Service Fund $70,000

To record the payment of the debt service with semi-annual interest.

2. Governmental activities column of the government- wide financial statements:

Capital assets $1,020,000

Reduction of Liabilities $950,000 ($1,000,000 - $50,000)

Payment of debt service and interest $70,000

3. December 31, 2013, government-wide statement of net position

Investment in capital assets, $1,020,000

Related debt                              (950,000)

Invested capital assets, net       $70,000

4. December 31, 2014, government-wide statement of net position

Investment in capital assets, $1,020,000

Related debt                              (850,000)

Invested capital assets, net      $170,000

Explanation:

a) Data and Analysis:

1. January 1, 2013, Capital Projects Fund $1,000,000 General Obligation Bonds Payable $1,000,000

2. May 1, Capital Projects Fund $20,000 General Fund $20,000

3. July 1 Construction Contract $1,020,000 Capital Projects Fund $1,020,000.

4. September 30, 2013 Debt Service Fund $70,000 General Fund $70,000  

5. October 1, Bonds Payable $50,000 Interest on Bonds Expense $20,000 ($1,000,000 * 4% * 6/12) Debt Service Fund $70,000

4 0
3 years ago
Tito Company reports a $20,000 increase in inventory and a $5,000 decrease in accounts payable during the year. Cost of Goods So
Neporo4naja [7]

Answer: Cash payments made to suppliers were $307,000

Explanation:

In order to find cash paid to suppliers we start from the cost of goods sold, add any increase in inventory to it, subtract any decrease in inventory, add any decrease in accounts payable, subtract any increase in accounts payable.

So 282,000+20,000+5,000= 307,000

7 0
3 years ago
Jack, Jill and Maritza are employed as sales persons for Deuce Hardware Supplies. None was hired for a definite period and each
Natali [406]

Answer:

Jack has claim while Jill didn't have.

Explanation:

Jack has claim against Deuce Hardware because his performance is tremendous and make more sales for the company. He done his work very well so he can claim against Deuce Hardware Supplies while on the other hand, Jill has no claim against Deuce Hardware because he commit a crime on the basis of which the company has the authority to terminate him from the job. He works very well in the company but his crime is big enough to terminate him.

5 0
3 years ago
True or false: The first decision that is necessary to make merchandise flow is to choose a transportation company.
pantera1 [17]

Answer:

False

Explanation:

What is a transportation company called?

  • Courier companies are usually spin-offs from freight forwarders.
  • There are various types of courier companies, such as airfreight courier companies or road couriers.

To learn more about it, refer

to brainly.com/question/25689052

#SPJ4

8 0
1 year ago
Moses and the hebrews believed that the god given laws that defined a human relationship with other humans
Gnoma [55]

Answer:

true  

Explanation:

What are the ancient Hebrews laws of God called?

The Law of Moses (Hebrew: תֹּורַת מֹשֶׁה Torat Moshe), also called the Mosaic Law, primarily refers to the Torah or the first five books of the Hebrew Bible. Traditionally believed to have been written by Moses

8 0
3 years ago
Other questions:
  • GAME DESIGN HELP!!! WILL MARK BRAINLIEST
    7·1 answer
  • Zach is a quality control manager at Fresh Mints International. Any time a problem arises and a decision needs to be made, prese
    12·1 answer
  • You are a collector of antique coins. you purchase a silver dollar minted in 1898. is this sale included in gdp for the current
    5·1 answer
  • Jordan performs services for Ryan. Which of the following factors, if any, indicates that Jordan is an independent contractor ra
    13·1 answer
  • The Model Privacy notice was introduced in 2010. Which statement about the notice is true?
    12·1 answer
  • Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 19.00% for 2 years, af
    9·1 answer
  • Moore’s Inc. will be making lease payments of $3,895.50 for a 10-year period, starting at the end of this year. If the firm uses
    12·1 answer
  • Bannister Co. is thinking about having one of its products manufactured by a subcontractor. Currently, the cost of manufacturing
    8·1 answer
  • Rapid Enterprises applies manufacturing overhead to its cost objects on the basis of 75% of direct material cost. If Job 17X had
    14·1 answer
  • Who is national debt most unfair to?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!