Loxley Corporation is authorized to issue 50,000 shares of $10 par value ordinary shares. During 2022, Loxley took part in the following selected transactions: 1. Issued 5,000 shares at $45 per share, less costs related to the issuance of the shares totaling $7,000. 2. Issued 1,000 shares for land appraised at $50,000. The shares were actively traded on a national securities exchange at approximately $46 per share on the date of issuance. 3. Purchased 500 treasury shares at $44 per share. The treasury shares purchased were issued in 2021 at $40 per share. Instructions: a. Prepare the journal entry to record item 1. b. Prepare the journal entry to record item 2. c. Prepare the journal entry to record item 3 using the cost method.
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Required information [The following information applies to the questions displayed below] Following are the issuances of stock transactions. 1. A corporation issued 4,000 shares of $20 par value common stock for $96,000 cash. 2. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $43,500. The stock has a $2 per share stated value. 3. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $43,500. The stock has no stated value. 4. A corporation issued 1,000 shares of $50 par value preferred stock for $93,500 cash. Analyze each transaction from issuances of stock by showing its effect on the accounting equation - specifically, identify the accounts and amounts (including + or -) for each transaction.
Akash M.
Early in the year, Debra Deal and several friends organized a corporation called Markup, Inc. The corporation was authorized to issue 100,000 shares of $100 par value, 5 percent cumulative preferred stock and 100,000 shares of $1 par value common stock. The following transactions (among others) occurred during the year: Jan. 7: Issued for cash 30,000 shares of common stock at $10 per share. The shares were issued to Deal and four other investors. Jan. 12: Issued an additional 1,000 shares of common stock to Deal in exchange for her services in organizing the corporation. The stockholders agreed that these services were worth $12,000. Jan. 18: Issued 4,000 shares of preferred stock for cash of $400,000. July 5: Acquired land as a building site in exchange for 10,000 shares of common stock. In view of the appraised value of the land and the progress of the company, the directors agreed that the common stock was to be valued for purposes of this transaction at $12 per share. Nov. 25: The first annual dividend of $5 per share was declared on the preferred stock to be paid December 11. Dec. 11: Paid the cash dividend declared on November 25. Dec. 31: After the revenue and expenses were closed into the Income Summary account, that amount indicated a net income of $810,000.
Supreeta N.
Problem #16) Gloria Detoya Corporation was authorized to issue 900,000 ordinary shares of 5%, P100 par value preference shares and 1.5 million shares of no-par ordinary shares with a P5 stated value. The following transactions occurred during 2019: on Feb. 2, 24,000 ordinary shares were sold to a group of individual shareholders at P24 per share. On Feb. 15, 5,500 preference shares were issued in exchange for a parcel of land to be held for future development; the land was not actively traded and had a fair value of P795,000. The preference shares market value was not determined. On Apr. 30, 2,500 ordinary shares were issued to a lawyer in exchange for services rendered in forming the corporation. All parties agreed that P60,000 represented the value of the lawyer's services. On Nov. 20, an additional 7,000 ordinary shares were issued at P45 per share. 1,400 ordinary shares were repurchased at P35 per share on Nov. 30 and are to be held in treasury. Additional 1,000 preference shares were issued at P125 per share on Dec. 15. On Dec. 30, the firm sold 600 shares of the stock held in treasury at a price of P41 per share. On Dec. 31, preference dividends were declared and paid in cash. Required: Prepare the journal entries to record these transactions. Assuming that the profit for the year amounted to P450,000, prepare the shareholders' equity section of the statement of financial position as at Dec. 31, 2019.
Madhur L.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
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