Share
Explore BrainMass

Accounting: Ex147 Epson Co; Ex150 Dial Co; Ex154 Abbott Corp: journal entries

Exercises
Ex. 147
Epson Company had the following transactions:
1. Issued 4,000 shares of $100 par preferred stock at $110 for cash.
2. Issued 5,000 shares of common stock with a par value of $10 for $85,000.
3. Purchased 500 shares of common treasury stock for $10,000.

Instructions
Prepare the appropriate journal entries.

Ex. 150
On January 1, 2003, Dial Company issued 15,000 shares of $2 par value common stock for $100,000. On March 1, 2003, the company purchased 2,000 shares of its common stock for $10 per share for the treasury. On June 1, 2003, 700 of the treasury shares are sold for $13 per share. On September 1, 2003, 1,000 treasury shares are sold at $7 per share.

Instructions
Journalize the stock transactions of Dial Company in 2003.

Ex. 154
In its first year of operations, Abbott Corporation had the following transactions pertaining to its $40 par value preferred stock.
Feb. 1 Issued 4,000 shares for cash at $41 per share.
Nov. 1 Issued 2,000 shares for cash at $44 per share.

Instructions
(a) Journalize the transactions.
(b) Indicate the amount to be reported for (1) preferred stock, and (2) paid-in capital in excess of par value-preferred stock at the end of the year.

Ex. 163 (Decision Making)
Majors Corporation has 1,000,000 authorized shares of $20 par value common stock. As of June 30, 2003, there were 500,000 shares issued and outstanding. On June 30, 2003, the board of directors declared a $.50 per share cash dividend to be paid on August 1, 2003.

Instructions
Prepare the necessary journal entries to be recorded on (a) the date of declaration, (b) the date of record, and (c) the date of payment.

Solution Preview

Exercises
Ex. 147
Epson Company had the following transactions:
1. Issued 4,000 shares of $100 par preferred stock at $110 for cash.

Cash/Bank A/c Dr 4,400
To Preferred Stock A/c 4,000
To Share Premium A/c 400
2. Issued 5,000 shares of common stock with a par value of $10 for $85,000.
Common Stock Holders A/c Dr. 85,000
To Common Stock A/c 50,000
To Share Premium A/c 35,000
3. Purchased 500 shares of common treasury stock for $10,000.

Treasury Stock A/c Dr. 10,000
To Bank A/c 10,000
Instructions
Prepare the appropriate journal entries.

Ex. 150
On January 1, 2003, Dial Company issued 15,000 shares of $2 par value common stock for $100,000. On March 1, 2003, the company purchased 2,000 shares of its common stock for $10 per share for the treasury. On June 1, 2003, 700 of the treasury shares are sold for $13 per ...

Solution Summary

The solution provides the journal entries together with explanations.

$2.19