On Jan 5th, 2021, Issue 20,000 common shares at $11 each (100,000 authorized & $2 par value) to Jack Fox. On Jan 31st, 2022, Issue 5,000 shares of 4% PS (Par $100, MV $110, 50k authorized) to MXS Co., convertible to 28,000 CS shares, and 25,000 shares of CS (MV $18; 7k to Jack Fox & 18k to Julius Alter) for a lump-sum bargain price of $950,000. What would the entry look like for both years?

On Jan 5th, 2021, Issue 20,000 common shares at $11 each (100,000 authorized & $2 par value) to Jack Fox. On Jan 31st, 2022, Issue 5,000 shares of 4% PS (Par $100, MV $110, 50k authorized) to MXS Co., convertible to 28,000 CS shares, and 25,000 shares of CS (MV $18; 7k to Jack Fox & 18k to Julius Alter) for a lump-sum bargain price of $950,000. What would the entry look like for both years?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...

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Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par value common stock at 15 per share (400,000 shares were authorized). During the period January 1, 2014, through December 31, 2019, Kent reported net income of 750,000 and paid cash dividends of 380,000. On January 5, 2019, Kent purchased 12,000 shares of its common stock at 12 per share. On December 28, 2019, 8,000 treasury shares were sold at 8 per share. Kent used the cost method of accounting for treasury shares. What is Kents total shareholders equity as of December 31, 2019? a. 3,290,000 b. 3,306,000 c. 3,338,000 d. 3,370,000
Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions took place during 2019, the first year of the corporations existence: Sold 5,000 shares of common stock for 18 per share. Issued 5,000 shares of common stock in exchange for a patent valued at 100,000. At the end of Carys first year, total contributed capital amounted to: a. 40,000 b. 90,000 c. 100,000 d. 190,000
Contributed Capital Adams Companys records provide the following information on December 31, 2019: Additional information: 1. Common stock has a 5 par value, 50,000 shares are authorized, 15,000 shares have been issued and are outstanding. 2. Preferred stock has a 100 par value, 3,000 shares are authorized, 800 shares have been issued and are outstanding. Two hundred shares have been subscribed at 120 per share. The stock pays an 8% dividend, is cumulative, and is callable at 130 per share. 3. Bonds payable mature on January 1, 2023. They carry a 12% annual interest rate, payable semiannually. Required: Prepare the Contributed Capital section of the December 31, 2019, balance sheet for Adams. Include appropriate parenthetical notes.
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