Reference no: EM132441531

Questions -

Q1. Prepare the necessary journal entry for each of the following transactions for Terpsichorp Corporation. Journalize the transactions

(a) Issued 2,000 shares of its $10 par value common stock for $20 per share.

(b) Issued 5,000 shares of its stock for land advertised for sale at $90,000. Terpsichorp's stock is actively traded at a market price of $16 per share.

Q2. Rowlands Corporation has 100,000 shares of $40 par value preferred stock authorized. During the year, it had the following transactions related to its preferred stock. Journalize the transactions

(a) Issued 20,000 shares at $55 per share.

(b) Issued 10,000 shares for equipment having a $700,000 asking price. The stock had a market value of $75 per share.

Q3. Bridgeport Corporation began operations on April 1 by issuing 51,500 shares of $5 par value common stock for cash at $13 per share. On April 19, it issued 1,650 shares of common stock to attorneys in settlement of their bill of $25,300 for organization costs. In addition, Bridgeport issued 1,200 shares of $1 par value preferred stock for $7 cash per share.

Journalize the issuance of the common and preferred shares, assuming the shares are not publicly traded.

Q4. Blue Spruce Corporation issued 3,200 shares of stock.

Prepare the entry for the issuance under the following assumptions.

(a) The stock had a par value of $8 per share and was issued for a total of $50,000.

(b) The stock had a stated value of $8 per share and was issued for a total of $50,000.

(c) The stock had no par or stated value and was issued for a total of $50,000.

(d) The stock had a par value of $8 per share and was issued to attorneys for services during incorporation valued at $50,000.

(e) The stock had a par value of $8 per share and was issued for land worth $50,000.