Reference no: EM132540206

Questions -

Q1. ABC Corp issued 1000 common shares at $12 per share. Record the journal entry.

Q2. On June 1, Eagle Inc. issues 2000 shares for $6/share. On December 15, Eagle issues an additional 1000 shares for $9 per share.

1. Journalize the two transactions.

2. Calculate the average price per share after the December 15 transaction.

Q3. Spiro Inc.'s common shares have a market value of $14 per share on December 20. On this same date, Spiro issues 5000 shares to purchase land advertised for sale at $80000. Journalize the issue of shares to acquire the land.

Q4. On March 3, Spiral Corporation issues 40,000 preferred shares for $100 each. These shares are convertible into 4 common shares for each preferred share. On October 1, when the preferred shares have a market value of $105 each, and the common shares $28 each, 10,000 of the preferred shares are converted into common shares.

a. Journalize the issue of the shares on March 3.

b. Journalize the conversion of the preferred shares on October 1.

Q5. Kaposi Corp had the following Shareholder's Equity accounts as of December 31:

1. Common Shares: 5000 shares issued, $50000

2. Preferred Shares: 800 shares issued, $20000

3. Contributed Capital (reacquisition of common shares) $5000

4. Retained Earnings $29000

Prepare the Shareholder's Equity section of the Balance Sheet

Q6. The Borden Corporation has 50000, $2 noncumulative preferred shares. It declares annual preferred dividends on November 15 to shareholders of record on December 1, to be paid on December 21. Prepare the entries on the appropriate dates.

Q7. Patina Inc. has 80000 common shares. It declares a 10% stock dividend on December 1 to shareholders of record on December 15 to be be distributed on December 31. The market value per share was $15 on December 1, $14 on December 15 and $12 on December 31. Prepare the entries on the appropriate dates.