Question 1 How should I journalize stock transaction, post and prepare paid in capital section.
LJ's Corporation was organized on January 1, 2006.
It is authorized to issue 20,000 shares of 6%, $50 par value
preferred stock, and 500,000 shares of no-par common stock with a
stated value of $2 per share. The following stock transactions were
completed during the first year.
Issued 100,000 shares of common stock for cash at $3 per share.
Issued 10,000 shares of preferred stock for cash at $55 per
Issued 25,000 shares of common stock for land. The asking
price of the land was $90,000. The company's estimate of the
fair market value of the land was $85,000.
Issued 75,000 shares of common stock for cash at $4 per share.
Issued 10,000 shares of common stock to attorneys in payment
of their bill for $50,000 for services provided in helping the
Issued 5,000 shares of common stock for cash at $6 per share.
Issued 2,000 shares of preferred stock for cash at $58 per
Would you show me how to Journalize the transactions.
Post to the stockholders' equity accounts. ( how should I use J1 as the posting
Prepare the paid-in capital section of stockholders' equity at
December 31, 2006. (c) Total paid-in capital $1,431,000.
How do I journalize and post treasury stock transactions, and prepare
stockholders' equity section.
APJackson Corporation had the following stockholders' equity
accounts on January 1, 2006: Common Stock ($1 par) $400,000, Paid-in
Capital in Excess of Par Value $500,000, and Retained Earnings
$100,000. In 2006, the company had the following treasury stock
Purchased 5,000 shares at $7 per share.
Sold 1,000 shares at $10 per share.
Sold 2,000 shares at $9 per share.
Sold 1,000 shares at $5 per share.
APJackson Corporation uses the cost method of accounting for treasury
stock. In 2006, the company reported net income of $60,000.
How should I Journalize the treasury stock transactions, and prepare the
closing entry at December 31, 2006, for net income.
Open accounts for (1) Paid-in Capital from Treasury Stock, (2)
Treasury Stock, and (3) Retained Earnings. Post to these accounts
using J12 as the posting reference. (b) Treasury Stock $7,000
Prepare the stockholders' equity section for Greeve Corporation at
December 31, 2006. (c) Total stockholders' equity $1,058,000
The solution explains the journal entries relating to stockholders equity transactions and the preparation of stockholders equity section of the balance sheet