Cr. 67,500 (See note Below) Effect: Cash increased by $1,267,500 and preferred stock increased by 1200,000 and Paid-in Capital in Excess of Par – Preferred Stock increased by 1750000 Paid-in Capital in Excess of Par
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- Bu səhifədəki naviqasiya:
- Paid-in Capital in Excess of Par = 1267500-120000 = $67500
- Note: Paid-in Capital in Excess of Par = 1850000+162500-1750000 = $262500
| Sheldon optics produces medical lasers for use in hospitals. The accounts and their balances appear in the ledger of Sheldon Optics on October 31 of the current year as follows Preferred 2% stock, $80 par(50,000 shares authorized, 25000 shares issued $2,000, 000 Paid in capital in excess of par preferred stock 75, 000 common stock, $100 par (500,000 shares authorized, 50,000 shares issued) 5, 000,000 paid in capital in excess of par common stock 600,000 retained earnings 16,750,000 At the annual stockholders meeting on dec 7, the board of directors presented a plan for modernizing and expanding plant operations at a cost of 5,300,000.
Jan 10: borrowed $2,000,000 from whitefish National Bank, giving a 7% mortgage note Jan 21: Issued 15,000 shares of preferred stock, receiving $84.50 per share in cash Jan 31: Issued 17, 500 shares of common stock in exchange for land and a building, building valued at $1,850,000 and land valued at $162,500 Illustrate the effects on the accounts and financial statements of each of the preceding transactions. Solution: Jan 10
Journal Entry Cash A/C …………………………………………………….…..Dr. $2,000,000 7% mortgage note Payable………………. Cr. $2,000,000 Effect: Cash and Liability would increase by $2,000,000 Jan 21 Cash A/C…………………………………………………………………..…………Dr 1267500 Preferred Stock (15,000 x $80)…………………………….….Cr. 1200,000 Paid-in Capital in Excess of Par – Preferred Stock …….Cr.67,500 (See note Below) Effect: Cash increased by $1,267,500 and preferred stock increased by 1200,000 and Paid-in Capital in Excess of Par – Preferred Stock increased by 1750000
Paid-in Capital in Excess of Par 1267500-1200000= Jan 31 Building A/c ……………………………………………………………………..……….Dr. $1,850,000 Land A/c…………………………………………………………………..………………..Dr. $162,500 Common Stock (17,500 x $100)………………………….……………Cr. 1,750,000 Paid-in Capital in Excess of Par - Common stock …………….Cr. 262,500 Note: Paid-in Capital in Excess of Par = 1850000+162500-1750000 = $262500 Effect: Land increased by $1,850,000, Land increased by 162,500 and Common stock increased by 1,750,000 and Paid-in Capital in Excess of Par – Common Stock increased by 262,500 Kataloq: uploads uploads -> AZƏrbaycan respublikasi təHSİl naziRLİYİ TƏHSİl problemləRİ İnstitutu uploads -> ŞUŞa qəDİm azərbaycan diyari шуша древний край азербайджана shusha uploads -> Ci illər Böyük Vətən müharibəsində Qələbənin 70 illiyi uploads -> Qələbə -70 9 May Faşizm üzərində Qələbə Günüdür uploads -> Zərdab rayon Mədəniyyət və Turizm Şöbəsi Mərkəzləşdirilmiş Kitabxana Sistemi Metodika və biblioqrafiya şöbəsi uploads -> Biləsuvar rayon Mədəniyyət və Turizm idarəsi Mərkəzləşdirilmiş Kitaxana sisteminin Metodika şöbəsi “Milli iftixarımız – Şair Bəxtiyarımız” uploads -> Review of Disability Studies: An International Journal Yüklə 6.27 Kb. Dostları ilə paylaş:
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