Purchase Solution

Stockholder's Equity

Not what you're looking for?

Ask Custom Question

Dear Brainmass,

I am having some difficulty in understanding how to prepare the journal entries for these independent transactions. I would really appreciate the assistance when you get the chance. Thank you so much in advance for taking the time to review my post.

Prepare Journal Entries for the following independent transactions:

1. Issued 300 shares of $10 par value common stock for $3,875.

2. Issued 200 shares of $5 par value common stock for $850 and 300 shares of $50 preferred stock for $18,500.

3. Issued 600 shares of no-par common stock for $10,200. Prepare journal entries if (a) the stock had no stated value, and (b) the stock has a stated value of $2 per share.

4. Issued 300 shares of $10 par value common stock and 100 shares of $50 par value preferred stock for a lump sum of $14,200. The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share.

5. Purchased land worth $31,000 by issuing 2,000 shares of its $5 par value common stock.

6. The company has 10,000 shares of $10 par value common stock outstanding. On July 15, the company reacquired 100 shares at $85 per share. On September 15, the company sold 60 of the reacquired shares at $90 per share. On November 15, the company sold 40 of the reacquired shares at $83 per share. The company uses the Cost Method. Prepare an entry for all dates.

7. The company has 20,000 shares of $5 par value common stock outstanding. On August 15, the company reacquired 200 shares at $75 per share. On September 1, the company sold 200 of the reacquired shares at $70 per share. The company had no previous treasury stock transactions. The company uses the Cost Method. Prepare an entry for both dates.

8. Issued 450 shares of $100 par value, 8% preferred stock for $61,500. The stock is cumulative and participating.

9. On April 20, declared a dividend of $700,000 payable on June 1. Of this amount, $125,000 is a return of capital. Prepare an entry for both dates.

10. On June 1, declared a 5% stock dividend on its 200,000 shares of $10 par value common stock, when the fair value of the stock was $65 per share. The distribution date is August 15. Prepare an entry for both dates.

11. Using the same information as in #10, but assume a 75% stock dividend was declared rather than a 5% stock dividend.

12. A 3-for-1 stock split is declared when there are 300,000 shares of $15 par value common stock outstanding. (a) How many shares are outstanding after the split? (b) What is the par value per share after the split? (c) What is the total par value after the split? (d) What journal entry is required to record the split?

13. The company has outstanding 10,000 shares of $100 par value, 8% preferred stock and 60,000 shares of $10 par value common stock. The preferred stock was issued in January 2001, and no dividends were declared in 2001 or 2002. In 2003, the company declares a cash dividend of $300,000. How will the dividend be shared by common and preferred if the preferred is (a) noncumulative and (b) cumulative?

Purchase this Solution
Solution Summary

The solution explains the journal entries relating to stockholders equity transactions.

Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Learning Lean

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • What is Stockholder's Equity?

    524473 What is Stockholder's Equity? Define and explain Stockholder's Equity. Are there any financial statements from companies for stockholder's equity? Stockholder's equity is a section that appears on each company's balance sheet.

  • Return on Stockholder's Equity

    equity=1000000+500000+2500000=4000000=4.0 million Return in stockholder's equity = net profit / stockholder's equity*100 =0.6/4.0*100=15.0 percent b) Sales = 20 million Net profit margin = 5% Net profit = 20*5%= 1.0 million Stockholder's equity

  • Financial statement analysis

    Net income= $90,000 (Given) Stockholder's Equity = $202,500 (Calculated above) Return on Equity = Net income / Stockholder's equity = 44.44% =$90,000/$202,500 Check: Return on equity = Profit margin x Sales/ Assets x

  • Net Income to Total Assets and Stockholder's Equity

    609761 Net Income to Total Assets and Stockholder's Equity Jodie Foster Care Homes, Inc., shows the following: Year Net Income Total Assets Stockholder's Equity Total Debt 2011 $118,000 $1,900,000 $700,000 $1,200,000 2012 131,000 1,950,000

  • Effect of Each Transaction on Assets

    (4) increase in assets and increase in stockholder's equity. (5) decrease in assets and decrease in stockholder's equity. (6) increase in assets and decrease in assets. (7) increase in liabilities and decrease in stockholder's equity.

  • Financial Statements: Stockholder's Equity

    From the financial statements, list the different components from the Stockholder's Equity section. Read the footnotes to the financial statements to see what they disclose about their Stockholder's Equity section.

  • Pittman Corporation Dividends, Stock Splits, Stockholder's E

    Record the stockholder's equity components of the transactions for Pittman Corporation in T accounts. 2. Prepare the stockholder's equity section of the company's balance sheet as of December 31 20x8. Assume net income for 20x8 is $108,000.

  • Percent of sales method in pro forma balance sheet

    $ 5,000,000 Total Current Assets $13,000,000 Long-Term Debt 1,000,000 Fixed Assets, Net 2,000,000 Stockholder's Equity 9,000,000 Total Assets $15,000,000 Total Liabilities and Equity $ 15,000,000 Income Statement

  • Dividends, Stock Splits, and Stockholder's Equity

    264726 Dividends and Stock Split Transactions and Stockholder's Equity The stockholder's equity section of Rigby Moving and Storage Company's balance sheet as of December 31, 20x7 is shown below.

  • Balance Sheet

    Preferred Stock (20,000 shares outstanding at $20 par) $400,000 Common Stock (150,000 shares outstanding at $1 par) $150,000 Additional Paid in Capital $103,680 Total Stockholder's Equity $653,680 Total Liability and Stockholder's Equity

View More Related Solutions