Exercise 11-3 (Algo) Accounting for par, stated, and no-par stock issuances LO P1
Rodriguez Corporation issues 8,000 shares of its common stock for $69,600 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.
1. The stock has a $6 par value.
2. The stock has neither par nor stated value.
3. The stock has a $3 stated value.
· Record the issue of 8,000 shares of $6 par value common stock for $69,600 cash.
Note: Enter debits before credits.
| TransactionGeneral JournalDebitCredit1 |
· Record the issue of 8,000 shares of no-par, no-stated value common stock for $69,600 cash.
Note: Enter debits before credits.
| TransactionGeneral JournalDebitCredit2 |
· Record the issue of 8,000 shares of $3 stated value common stock for $69,600 cash.
Note: Enter debits before credits.
| TransactionGeneral JournalDebitCredit3 |
Exercise 11-6 (Algo) Stock issuance for noncash assets LO P1
Sudoku Company issues 33,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $243,000 and the building at $372,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.
Record the issue of 33,000 shares of $7 par value common stock in exchange for land valued at $243,000 and a building valued at $372,000.
Note: Enter debits before credits.
| TransactionGeneral JournalDebitCredit1 |
QS 11-8 (Algo) Reporting a small stock dividend LO P2
The stockholders’ equity section of Jun Company’s balance sheet as of April 1 follows. On April 2, Jun declares and distributes a 20% stock dividend. The stock’s per share market value on April 2 is $10 (prior to the dividend).
Prepare the stockholders’ equity section immediately after the stock dividend is distributed.
| JUN COMPANY | |
| Stockholders’ Equity | |
| April 2 (after stock dividend) | |
| Common stock | |
| Paid-in capital in excess of par value, common stock | |
| Total paid-in capital | |
| Retained earnings | |
| Total stockholders’ equity |
Exercise 11-8 (Algo) Large stock dividend LO P2
Required information
Use the following information for the Exercises 8-9 below. (Algo)
On June 30, Sharper Corporation’s stockholders’ equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend.
Common stock—$10 par value, 82,000 shares issued and outstanding $ 820,000
Paid-in capital in excess of par value, common stock 360,000
Retained earnings 740,000
Total stockholders’ equity $ 1,920,000
(1) Prepare the updated stockholders’ equity section after the distribution is made.
(2) Compute the number of shares outstanding after the distribution is made.
· Prepare the updated stockholders’ equity section after the distribution is made.
| SHARPER CORPORATIONStockholders’ Equity Section of the Balance SheetJune 30Common stock, no-par valuePaid-in capital in excess of par value, common stockRetained earningsTotal stockholders’ equity |
Compute the number of shares outstanding after the distribution is made.
| Number of common shares outstanding |
Exercise 11-9 (Algo) Stock split LO P2
Use the following information for the Exercises 8-9 below. (Algo)
On June 30, Sharper Corporation’s stockholders’ equity section of its balance sheet appears as follows before any stock dividend or split. Sharper declares and immediately distributes a 50% stock dividend.
Common stock—$10 par value, 82,000 shares issued and outstanding $ 820,000
Paid-in capital in excess of par value, common stock 360,000
Retained earnings 740,000
Total stockholders’ equity $ 1,920,000
Assume that instead of distributing a stock dividend, Sharper did a 3-for-1 stock split.
(1) Prepare the updated stockholders’ equity section after the split.
(2) Compute the number of shares outstanding after the split.
Prepare the updated stockholders’ equity section after the split.
| SHARPER CORPORATIONStockholders’ Equity Section of the Balance SheetJune 30Common stock dividend distributablePaid-in capital in excess of par value, common stockRetained earningsTotal stockholders’ equityCompute the number of shares outstanding after the split.Number of common shares outstanding WE HAVE DONE THIS ASSIGNMENT BEFORE, WE CAN ALSO DO IT FOR YOUGET SOLUTION FOR THIS ASSIGNMENT, Get Impressive Scores in Your ClassCLICK HERE TO MAKE YOUR ORDER on Rodriguez Corporation issues 8,000 shares of its common stock for $69,600 cash on February 20. TO BE RE-WRITTEN FROM THE SCRATCH |