Prepare journal entries indicated for each of transactions

Assignment Help Accounting Basics
Reference no: EM133176733

Question - Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred:

a. Collected $46 cash per share from four individuals and issued 5,600 shares of common stock to each.

b. Issued 6,600 shares of common stock to an outside investor at $46 cash per share. 6. Issued 8,600 shares of preferred stock at $19 cash per share.

Required -

1. Prepare the journal entries indicated for each of these transactions.

2. Prepare the stockholders' equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $42,000. No dividends were declared.

Reference no: EM133176733

Questions Cloud

Develop list of subheaders : Develop a list of subheaders that you will use to assess the organization. Use the content areas that are listed as deliverables for this assignment.
Organizational Flexibility : Scholarship places emphasis on the need for clear direction and yet, at the same time, a certain degree of organizational flexibility.
How much should the investment be initially recognized : The market price of the shares is P15 per share and this was sold at P18 per share on January 2, 2021. How much should the investment be initially recognized
What does capm indicate the appropriate expected return : If the expected market return is 18.5 percent and the risk-free rate is 4.5 percent, what does CAPM indicate the appropriate expected return for Pharoah stock
Prepare journal entries indicated for each of transactions : Collected $46 cash per share from four individuals and issued 5,600 shares of common stock to each. Prepare journal entries indicated for each of transactions
Simulate the system for the average waiting time : Simulate the system for the average waiting time in the line and in the system. For what percent of the time the agent remains idle
Develop list of subheaders : Develop a list of subheaders that you will use to assess the organization.
How much compensation will be recorded : Hufflepuff initially estimates that it is probable that the goal will be achieved. How much compensation will be recorded in 2020, 2021, and 2022
How could this impact cash available for other investments : As CFO, you believe that your company's stock price is lower than its real value. How could this impact cash available for other investments

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determining bond discount amortization

On June 1, 2009, Everly Bottle Company sold $400,000 in long-term bonds for $351,040. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%.

  What is Meghann QBI deduction

In 2019, Meghann Carlson, a single taxpayer, reports QBI of $110,000 and modified taxable income of $78,000. What is Meghann QBI deduction

  Ordering calendars at walton bookstore

Consider each change to the monetary inputs (the purchase cost, the selling price, and the salvage price) one at a time in Example 12.6. For each such change, either up or down, describe how the cost of understocking and the cost of overstocking c..

  Is it profitable to replace the year-old machine

Your company's tax rate is 20%, and the opportunity cost of capital for this type of equipment is 10%. Is it profitable to replace the year-old machine

  Make a retained earnings statement for the year

Aug. 1 Discovered a $72,000 overstatement of 2011 depreciation on equipment. Ignore income taxes. Make a retained earnings statement for the year

  Determine the cost of goods sold on October

Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of goods sold on October 24

  What is break even in units

Breakeven Selling Price = $15, Variable Cost = 5, Fixed cost = (100,000 units) 4. What is break even in units? Please explain step by step

  Make the journal entries to record reacquisition of shares

On October 20, 2020, the company purchased and cancelled an additional 4,000 shares. Make the journal entries to record reacquisition of shares

  What factors might inhibit the success of optimal strategic

What factors might inhibit the success of the optimal strategic alternative identified? How can the issues you identified be addressed and corrected

  Determine the present value of the cca tax shield

If the company's required rate of return is 11%, determine the present value of the CCA tax shield (PV CCATS) of the purchase

  What the total lease-related expenses for the fiscal year

What the total lease-related expenses for the fiscal year ended September 30, 2020, is? Commencement of the lease - January 1, 2019

  What are the rest of the tax results to B

Accumulated E&P = $15,000. Current E&P = $(12,000). Current E&P is incurred ratably through the year. Distribution = $10,000 on September 1

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