Eagle Co. has the following transactions or 2022. Record the following transactions. No explanations needed. Jun 1
Question:
Eagle Co. has the following transactions or 2022. Record the following transactions. No explanations needed.
Jun 1 Issued 2,000 common shares for $6 per share.
Dec 15 Issued an additional 1,000 shares for $9 per share.
Record the entries:
Date 2022 | Particulars | PR | Debit | Credit |
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What is the average cost per share after the December 15th transaction?
2. Spiro Inc issues 5,000 common shares that have a current market value of $14 per share on Dec 20, in exchange for equipment, whose fair market value could not be determined.
Record the entry.
Date 2022 | Particulars | PR | Debit | Credit |
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3. Enviro Corp. reported the following information about its common shares at January 31. There were 35,000 shares issued, valued at $122,500.
On Feb 15, of the same year, it paid cash to reacquire 5,000 of these shares. This is the first time the company has reacquired any of its shares.
Journalize the reacquisition of the shares, assuming:
The company paid $15,000 to reacquire them.
Date 2022 | Particulars | PR | Debit | Credit |
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The company paid $20,000 to reacquire them.
Date 2022 | Particulars | PR | Debit | Credit |
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Part 2 - PREFERRED SHARES
The following items were shown on the balance sheet of McKean Corporation on December 31, 2022. Questions are on the next page.
Shareholders' Equity
Share Capital
Common shares, no par value, unlimited number of shares
Authorized: shares issued $1,200,000
$2 preferred shares, no par value, redeemable at $120, cumulative,
20,000 shares authorized, 6,000 shares issued. 120,000
Total Share Capital $1,320,000
Retained Earnings 500,000
Total shareholders' equity $1,820,000
Questions: Assume all of the common shares were issued at $5 per share.
The number of common shares issued was:
The preferred shares dividend was:
It would cost the company to redeem 1,000 preferred shares.
The average issue prices of the preferred shares was:
The total amount of cash and other assets paid to McKean Corporation, in exchange for share capital, at December 31, 2022 was:
2) Gabriel Ltd. was incorporated February 1, 2022 and is authorized to issue an unlimited number of preferred and common shares. The company entered into the following transactions during the year.
Feb 10 Issued 30,000 common shares for $2.30 per share.
Feb 21 Issued 4,000 common shares to the company's accountants as payment for a bill
of $18,000 for services performed.
March 16 Issued 1,000 preferred shares for $95 per share.
Sept 10 Required 3,000 common shares for $1.75 per share.
Date 2022 | Particulars | PR | Debit | Credit |
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3) The preferred account has a balance of $100,000. There are 500 convertible preferred shares, each convertible to 4 common shares. On a day that the preferred shares have an average cost of $200 and a market value of $230, ½ of the preferred shares are converted to common shares. Common shares are trading at $60. Record the entry on Oct 18.
Date 2022 | Particulars | PR | Debit | Credit |
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Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw