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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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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
...

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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