Reference no: EM13138372

Prepare entries to record the following:

(a) Issued 1,000 shares of $15 par common stock at $54 for cash.
(b) Issued 1,400 shares of no-par common stock in exchange for equipment with a fair market price of $24,000.
(c) Purchased 100 shares of treasury stock at $26.
(d) Sold 100 shares of treasury stock purchased in (c) at $29.

A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the following:

(a) Purchased 1,000 shares of treasury stock at $12. The treasury stock is accounted for by the cost method.
(b) Sold 500 shares of treasury stock at $15.
(c) Purchased equipment for $75,000, paying $25,000 in cash and issuing 4,000 shares of common stock for the equipment.
(d) Sold 500 shares of treasury stock at $11.

A company has 10,000 shares of $10 par common stock outstanding. Prepare entries to record the following:

(a) Purchased 1,000 shares of treasury stock at $16. The treasury stock is accounted for by the cost method.
(b) Sold 500 shares of treasury stock at $19.
(c) Purchased equipment for $80,000, paying $25,000 in cash and issuing 4,000 shares of common stock for the equipment.
(d) Sold 500 shares of treasury stock at $14.

The capital accounts of Hope and Indiana have balances of $115,000 and $95,000, respectively. Clint and Casey are to be admitted to the partnership. Clint buys one-fifth of Hope's interest for $30,000 and one-fourth of Indiana's interest for $20,000. Casey contributes $45,000 cash to the partnership, for which he is to receive an ownership equity of $45,000.

Required:

(1) Journalize the entries to record the admission of (a) Clint and (b) Casey.

(2) What are the capital balances of each partner after the admission of the new partners?

S. Stephens and J. Perez are partners in Space Designs. Stephens and Perez share income equally. D. Fredricks will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $8,000. The capital balances of each partner are $100,000 and $139,000, respectively, prior to the revaluation.

Required:

(1) Provide the journal entry for the asset revaluation.

(2) Provide the journal entry for Fredricks' admission under the following independent situations:

a. Fredricks purchased a 20% interest for $50,000.

b. Fredricks purchased a 30% interest for $125,000.

Kala and Leah, partners in Best Designs, have capital balances of $40,000 and $60,000 respectively. Adam joins the partnership by buying one-half of Kala's interest for $30,000. In addition, because of Adam's outstanding sales skills, the partners agree to increase his interest to 40% if he invests another $10,000. The income-sharing ratio of Kala, Leah, and Adam is 4:3:1.

(a) Journalize the entries to record the admission of Adam to the partnership.
(b) Immediately after Adam's admission to the partnership, Leah sells one-fourth of her interest to Denton for $35,000. Journalize the entry to record this transaction.