HomeworkLib
Question

Please prepare Journal entries for the following transactions. On January 1, 2016 we are authorized to...

Please prepare Journal entries for the following transactions.

On January 1, 2016 we are authorized to issue 100,000 shares of our 1.00 common stock. We issued 50,000 shares for $80/share; and issued a $100,000 bond for either 1) $96,000 or 2) 104,000. The market rate was 9% and the stated rate was 10%. The bond is a 10 year bond that pays interest on 1/1 of each year.  

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Date Account titles and explanation Debit(in $) Credit(in $)
Jan 1,2016 Cash(50,000*$80)       40,00,000
Common Stock(50,000*$1)        50,000
Paid in capital in excess of par-common stock 39,50,000
Jan 1,2016 Cash            96,000
Discount on issue of Bond              4,000
Bonds Payable     1,00,000
Jan 1,2016 Cash         1,04,000
Bonds Payable     1,00,000
Premium on issue of Bond          4,000
0 0
Add a comment
Know the answer?
Add Answer to:
Please prepare Journal entries for the following transactions. On January 1, 2016 we are authorized to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Prepare journal entries to record the following transactions for Kenley in for the third quarter of...

    Prepare journal entries to record the following transactions for Kenley in for the third quarter of 2019. Kenley Inc. was organized and authorized to issue 5,000 shares of $50 par value, 7% percent preferred stock and 100,000 shares of $5 par value common stock on July 1, 2019. July 1   Issued 10,000 shares of common stock at $11 per share July 1   Issued 200 shares of common stock at $12 per share for services rendered in connection with the organization...

  • Question One. On January 1, 2016, ZANACO Bank was incorporated with the authorized capital of K3,...

    Question One. On January 1, 2016, ZANACO Bank was incorporated with the authorized capital of K3, 000, 000, K2 Par Value common stock and 200,000 K100 par value 10% Cumulative preferred stock. The following transactions relating to the stockholders equity occurred in the first year of operations. • On January 1st 2016, the board authorized the issuance of K1, 000, 000 common stock shares of these 500, 000 shares were issued for cash at K3 per share, while 500, 000...

  • Prepare journal entries to record each of the following four separate issuances of stock. 1. A...

    Prepare journal entries to record each of the following four separate issuances of stock. 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 $59,500. The stock has a $3 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...

  • Apex Co. was organized on January 1, 2015. It is authorized to issue 60,000 shares of...

    Apex Co. was organized on January 1, 2015. It is authorized to issue 60,000 shares of 6%, $100 par value preference shares, and 600,000 shares of ordinary shares with a par value of $1 per share. The following share transactions were completed during the first year. Date Transaction January, 10 Issued 70,000 ordinary shares for cash at $6 per share. March, 1 Issued 10,000 preference shares for cash at $140 per share. April, 1 Issued 40,000 ordinary shares for equipment....

  • Prepare journal entries, as well as adjusted entries for transactions. With work shown especially for 6A-6B...

    Prepare journal entries, as well as adjusted entries for transactions. With work shown especially for 6A-6B 5. Division 1 purchases 24 month insurance for $48,000 on 08/31 6. (A) Division 2 sold $50,000 of services for cash and had $80,000 of expenses paid in cash 6 (A) Division 2 was sold for cash of $10,000 6 (B) Division 2 is sold. Total net loss was $30,000, Gain on sale was $10,000 7. Division 1 Purchased Bonds for $50,000 cash that...

  • Teal Corporation was organized on January 1, 2017. It is authorized to issue 9,400 shares of...

    Teal Corporation was organized on January 1, 2017. It is authorized to issue 9,400 shares of 8%, $100 par value preferred stock, and 537,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 80,740 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,980 shares of preferred stock for cash at $109 per share. Apr. 1 Issued 24,200 shares...

  • Whispering Corporation was organized on January 1, 2020. It is authorized to issue 9,200 shares of...

    Whispering Corporation was organized on January 1, 2020. It is authorized to issue 9,200 shares of 8%, $100 par value preferred stock, and 538,600 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 80,120 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,470 shares of preferred stock for cash at $112 per share. Apr. 1 Issued 24,910 shares...

  • Ayayai Corp. was organized on January 1, 2017. It is authorized to issue 19,000 shares of...

    Ayayai Corp. was organized on January 1, 2017. It is authorized to issue 19,000 shares of 5%, $50 par value preferred stock and 450,000 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 65,000 shares of common stock for cash at $4 per share. Mar. 1 Issued 1,100 shares of preferred stock for cash at $54 per share. May 1 Issued 110,000 shares...

  • Marigold Corp. was organized on January 1, 2022. It is authorized to issue 22,500 shares of...

    Marigold Corp. was organized on January 1, 2022. It is authorized to issue 22,500 shares of 7% 551 par value preferred stock and 457.000 shares of nopar common stock with a stated value of $3 per share. The following stock transactions were completed during the first year Jan. 10 Issued 68,500 shares of common stock for cash at 55 per share Mar. 1 Issued 1.170 shares of preferred stock for cash at $54 per share. May 1 Issued 113.500 shares...

  • Flint Corporation was organized on January 1, 2022. It is authorized to issue 23,300 shares of...

    Flint Corporation was organized on January 1, 2022. It is authorized to issue 23,300 shares of 6%. $50 par value preferred stock and 469,000 shares of no par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 74,500 shares of common stock for cash at $6 per share. Mar. 1 Issued 1.290 shares of preferred stock for cash at $56 per share. May 1 Issued 119.500...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT