Stockholders equity : explained
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QS-13-2
Prepare the journal entry to record each separate transaction. (a) On March 1, DVD Co. issues 44,500 shares of $4 par value common stock for $255,000 cash. (b) On April 1, GT Co. issues no-par value common stock for $50,000 cash. (c) On April 6, MTV issues 2,000 shares of $20 par value common stock for $35,000 of inventory, $135,000 of machinery, and acceptance of a $84,000 note payable.
QS- 13-4
Prepare journal entries to record the following transactions for Skylar Corporation:
May 15 Declared a $48,000 cash dividend payable to common stockholders.
July 31 Paid the dividend declared on May 15.
QS 13-5
The stockholders' equity section of Catalina Company's balance sheet as of April 1 follows. On April 2, Catalina declares and distributes a 10% stock dividend. The stock's per share market value on April 2 is $25. Prepare the stockholders' equity section immediately after the stock dividend.
Common stock?$5 par value, 375,000 shares
authorized, 150,000 shares issued and outstanding . . . . . . . . . . . $ 750,000
Contributed capital in excess of par value, common stock . . . . . . . 352,500
Total contributed capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,102,500
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633,000
Total stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,735,500
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Solution Summary
The solution explains the journal entries relating to stockholders equity transactions and the preparation of the stockholders equity section of the balance sheet.
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QS-13-2
Prepare the journal entry to record each separate transaction. (a) On March 1, DVD Co. issues 44,500 shares of $4 par value common stock for $255,000 cash.
Mar. 1 Cash 255,000
Common Stock, $4 Par Value 178,000
Contributed Capital in Excess of Par
Value, Common Stock
77,000
Issued par value stock for cash.
(b) On April 1, GT Co. issues no-par value common stock for $50,000 cash.
Apr. 1 Cash 50,000
Common Stock, No-Par Value 50,000
Issued no-par value stock for cash.
(c) On April 6, MTV issues 2,000 shares of $20 par value common
stock for $35,000 of inventory, $135,000 of machinery, and acceptance of a $84,000 note payable.
Apr. 6 Inventory 35,000
Machinery 135,000
Note Payable 84,000
Common Stock, $20 Par Value 40,000
Contributed Capital in Excess of Par
Value, Common Stock
46,000
...
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