Give journal entries to record the above transactions

Assignment Help Corporate Finance
Reference no: EM13982819

Donroy Corporation was authorized to issue unlimited preferred shares, $0.30, no-par value, and unlimited common shares, no-par value. 
During the first year, the following transactions occurred:
80,000 common shares were sold for cash at $12 per share.
Share issue costs of $18,200 were paid; this amount was treated as a reduction to retained earnings.
4,000 preferred shares were sold for cash at $25 per share.
8,000 common shares were reacquired and retired for $12.50 per share.
Cash dividends of $10,000 were declared and paid. Indicate the split between common and preferred dividends.
5,000 common shares and 500 preferred shares were given as payment for a small manufacturing facility that the company needed. 
This facility originally cost $90,000 and had a depreciated value on the books of the selling company of $45,000. The fair value of the facility was estimated to be $80,000.

Required:

Give journal entries to record the above transactions. State and justify any assumptions you made. Prepare the shareholders' equity section of the SFP at year-end. Net earnings and comprehensive income was $216,400. 

Reference no: EM13982819

Questions Cloud

Is there a relationship between ebcdic character : Is there a relationship between EBCDIC character representation of the decimal digits from 0 to 9 and their BCD representation? Explain.--Consider a hypothetical computer system. A two-byte memory space is used for a sign-and-magnitude representation..
Is the magnitude of the angular momentum of the disk : Suppose that the disk were removed, as shown at right. Would the magnitude of the angular momentum of the puck be greater than, less than, or equal to that of the puck-disk system in parts a and b? Explain.
Provide a reasonable estimate of the nominal interest rate : The maturity premium is estimated by the difference between the average yield on 30-year Treasury bonds and 3-month Treasury bills.
Write a program to solve a simple payroll calculation : Write a program to solve a simple payroll calculation. Find the amount of pay given, hours worked, and hourly rate. (The formula to calculate payroll is pay = hourly rate * hours worked.) Use these values to test the calculation:
Give journal entries to record the above transactions : Give journal entries to record the above transactions. State and justify any assumptions you made. Prepare the shareholders' equity section of the SFP at year-end. Net earnings and comprehensive income was $216,400.
Role in defining healthcare documentation : Go to Accreditation Association for Ambulatory Health Care (AAAHC) http;//www.aaahc.org/ and In a brief summary, outline what type of organization it accredits or reviews and its role in defining healthcare documentation.
What the service provides : What the service provides. - Type of service (SAAS, PAAS, IAAS), it may be more than one. Justify your assessment using the NIST definitions. - Does it meet the 5 essential characteristics of cloud computing listed by NIST. Justify your assessment.
Find the proportion of working days : Find the proportion of working days in which anywhere from 750 to 850 tons is mined. Find the probability that on a given day, the yield will be below 665 tons.
Independence of parts and of plants : According to Fortune, Missouri is within 500 miles of 44% of all U.S. manufacturing plants. 8 If a Missouri company needs parts manufactured in 122 different plants, what is the probability that at least half of them can be found within 500 miles ..

Reviews

Write a Review

Corporate Finance Questions & Answers

  What is the total cost to the firms original investors

What is the total cost to the firm's original investors due to market imperfections from the IPO - What will the value of the whole firm be after this investment (the post-money valuation)?

  1a 550 percent coupon bond with 14 years left to maturity

1.a 5.50 percent coupon bond with 14 years left to maturity can be called in 4 years. the call premium is one year of

  What would be terminal values of dividends from iwpi-spain

What would be the terminal values of the dividends from IWPI-Spain if they were expected to grow in real terms at 1% rather than 0%? How would this growth arise?

  Prepare a pro forma combined balance sheet

Prepare a pro forma combined balance sheet using purchase accounting. Note that Pierson pays $180 million in cash for Drew where the cash is obtained by using long term debt.

  Examination of differences among revenue, costs & cash flows

Match the following finance terms with the solutions below. If none fit, indicate it.

  Assume you have 1 million now and you have just retired

assume you have 1 million now and you have just retired from your job. you expect to live for 20 years and you want to

  Cost of capital calculations impact on investment decisions

While most financial professionals are very comfortable with the textbook computation, there are a few gray areas worthy of note because of their potential impact on capital budgeting decisions.

  Evaluate the profit margin of college

Computation of profit margin of College at given strength of students and With the increase in scholarship money the school expects an increase in enrollment to 125 students for the year. Should the college accept the grant?  Explain the basis for ..

  Evaluation of stock price and stock

Calculation of stock price and stock to be allotted with given data - c. How many shares of common stock must be issued at the value computed in part b to eliminate the deficit computed in part a?

  What value does the budgeting process provide

What value does the budgeting process provide to today's modern healthcare organization and why is strategic planning process an important part of healthcare organizations overall management needs?

  Valuation of stock through dividend model1 using

valuation of stock through dividend model.1. using yahoofinance what is mcds current annualized dividend amount? when

  Control of retirement investing

Explain what do you think Monica's idea of taking control of retirement investing and explain what is your opinion of Richard's contention that saving outside the pension was best?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd