Reference no: EM131778495
Assignment -
Q1. Coil Welding Corporation sells and services pipe welding equipment in California. The following selected accounts appear in the ledger of Coil Welding Corporation on February 1, 2010, the beginning of the current fiscal year:
Preferred 2% Stock, $25 par (50,000 shares authorized, 40,000 shares issued) . . . . . . . . . . . . . . . . . . $ 1,000,000
Paid-In Capital in Excess of Par-Preferred Stock . . . . . . . . . . . . 240,000
Common Stock, $5 par (1,000,000 shares authorized, 750,000 shares issued) . . . . . . . . . . . . . . . . . . . . 3,750,000
Paid-In Capital in Excess of Par-Common Stock . . . . . . . . . . . . 6,000,000
Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36,785,000
During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:
a. Purchased 60,000 shares of treasury common for $540,000.
b. Sold 42,000 shares of treasury common for $462,000.
c. Issued 7,500 shares of preferred 2% stock at $38.
d. Issued 120,000 shares of common stock at $15, receiving cash.
e. Sold 13,000 shares of treasury common for $110,500.
f. Declared cash dividends of $0.50 per share on preferred stock and $0.42 per share on common stock.
g. Paid the cash dividends.
Instructions - Journalize the entries to record the transactions. Identify each entry by letter.
Q2. Porto Bay Corporation manufactures and distributes leisure clothing. Selected transactions completed by Porto Bay during the current fiscal year are as follows:
Jan. 10. Split the common stock 4 for 1 and reduced the par from $100 to $25 per share. After the split, there were 500,000 common shares outstanding.
Mar. 1. Declared semiannual dividends of $1.20 on 80,000 shares of preferred stock and $0.24 on the 500,000 shares of $25 par common stock to stockholders of record on March 31, payable on April 30.
Apr. 30. Paid the cash dividends.
July 9. Purchased 75,000 shares of the corporation's own common stock at $26, recording the stock at cost.
Aug. 29. Sold 40,000 shares of treasury stock at $32, receiving cash.
Sept. 1. Declared semiannual dividends of $1.20 on the preferred stock and $0.15 on the common stock (before the stock dividend). In addition, a 1% common stock dividend was declared on the common stock outstanding, to be capitalized at the fair market value of the common stock, which is estimated at $30.
Oct. 31. Paid the cash dividends and issued the certificates for the common stock dividend.
Instructions - Journalize the transactions.
Attachment:- Template.rar