Question

After looking into debt financing through notes, mortgage, and bonds payable, Canyon Canoe Company decides to raise additional capital for a planned business expansion. The company will be able to acquire cash as well as land adjacent to its current business location. Before the following transactions, th balance in Common Stock on January 1, 2021 was $136,000 and included 136,000 shares of common stock issued and outstanding. There was no Paid-In Capital in Excess of Par—Common.) Canyon Canoe Company had the following transactions in 2021: i (Click the icon to view the transactions.) Read the requirements. Requirement 1. Journalize the transactions. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Jan. 1: Issued 50,000 shares of $1 par value common stock for a total of $200,000 Date Accounts and Explanation 0 More Info Debit Credit Jan. 1 Jan. 1 Issued 50,000 shares of $1 par value common stock for a total of $200,000. 10 Issued 20,000 shares of 4%, $3 par value preferred stock in exchange for land with xchange for land with a market value of $70,000. Dec. 15 Declared total cash dividends of $15,000. 20 Declared an 8% common stock dividend when the market value of the stock was $4.50 per share. 31 Paid the cash dividends. 31 Distributed the stock dividend. Print Done

Answer 1

Date		Account titles and explanation		Debit(in $)	Credit(in $)
	Jan-01	Cash		2,00,000
		Common stock(50,000*$1)			50,000
		Paid-in capital in excess of par value-common			1,50,000
	Jan-10	Land		70,000
		Preferred Stock(20,000*$3)			60,000
		Paid-in capital in excess of par value-Preferred Stock			10,000
	Dec-15	Retained earnings		15,000
		Dividends Payable			15,000
	Dec-20	Retained earnings(50,000*8%*$4.50)		18,000
		Common stock dividend distributable(50,000*8%*$1.00)			4,000
		Paid in capital in excess of par			14,000
	Dec-31	Dividends Payable		15,000
		Cash			15,000
	Dec-31	Common stock dividend distributable(50,000*8%*$1.00)		4,000
		Common Stock			4,000