ACCOUNTING

Question Attempts: 0 of 5 used

Copyright © 2000-2014 by John Wiley & Sons, Inc. or related companies. All rights reserved.

Print by: Diana Urresta Waith AB116: Accounting II / 116_Unit 07 Assignment

*Problem 13-6A Irwin Corporation has been authorized to issue 20,800 shares of $100 par value, 10%, noncumulative preferred stock and 981,000 shares of no-par common stock. The corporation assigned a $2.50 stated value to the common stock. At December 31, 2014, the ledger contained the following balances pertaining to stockholders’ equity.

The preferred stock was issued for land having a fair value of $142,900. All common stock issued was for cash. In November, 1,500 shares of common stock were purchased for the treasury at a per share cost of $14. In December, 500 shares of treasury stock were sold for $15 per share. No dividends were declared in 2014.

Preferred Stock $119,000 Paid-in Capital in Excess of Par—Preferred Stock 23,900 Common Stock 981,000 Paid-in Capital in Excess of Stated Value—Common Stock 1,781,300 Treasury Stock (1,000 common shares) 14,000 Paid-in Capital from Treasury Stock 500 Retained Earnings 81,600

Prepare the journal entries for the: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(1) Issuance of preferred stock for land. (2) Issuance of common stock for cash. (3) Purchase of common treasury stock for cash. (4) Sale of treasury stock for cash.

No. Account Titles and Explanation Debit Credit

1.

2.

3.

4.

Prepare the stockholders’ equity section at December 31, 2014. (Enter the account name only and do not provide the descriptive information provided in the question.)

IRWIN CORPORATION Balance Sheet (Partial)

December 31, 2014

$

$

:

$

Question Attempts: 0 of 5 used

Copyright © 2000-2014 by John Wiley & Sons, Inc. or related companies. All rights reserved.

Print by: Diana Urresta Waith AB116: Accounting II / 116_Unit 07 Assignment

*Problem 13-3A The stockholders’ equity accounts of Castle Corporation on January 1, 2014, were as follows.

During 2014, the corporation had the following transactions and events pertaining to its stockholders’ equity.

No dividends were declared during the year.

Preferred Stock (8%, $49 par, cumulative, 10,400 shares authorized) $ 416,500 Common Stock ($1 stated value, 1,935,100 shares authorized) 1,447,400 Paid-in Capital in Excess of Par—Preferred Stock 145,400 Paid-in Capital in Excess of Stated Value—Common Stock 1,449,800 Retained Earnings 1,784,500 Treasury Stock (10,200 common shares) 51,000

Feb. 1 Issued 25,500 shares of common stock for $123,800. Apr. 14 Sold 5,900 shares of treasury stock—common for $32,900. Sept. 3 Issued 5,000 shares of common stock for a patent valued at $35,600. Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $6,000. Dec. 31 Determined that net income for the year was $482,500.

Journalize the transactions and the closing entry for net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit

Feb. 1

Apr. 14

Sept. 3

Nov. 10

Dec. 31

Enter the beginning balances in the accounts, and post the journal entries to the stockholders’ equity accounts. (Use J5 for the posting reference.) (Post entries in the order of journal entries presented in the previous part.) Preferred Stock

Date Explanation Ref Debit Credit Balance

Balance √

Common Stock

Date Explanation Ref Debit Credit Balance

Balance √

J5

J5

Paid-in Capital in Excess of Par—Preferred Stock

Date Explanation Ref Debit Credit Balance

Balance √

Paid-in Capital in Excess of Stated Value—Common Stock

Date Explanation Ref Debit Credit Balance

Balance √

J5

J5

Paid-in Capital from Treasury Stock

Date Explanation Ref Debit Credit Balance

J5

Retained Earnings

Date Explanation Ref Debit Credit Balance

Balance √

J5

Treasury Stock

Date Explanation Ref Debit Credit Balance

Balance √

J5

J5

Prepare a stockholders’ equity section at December 31, 2014, including the disclosure of the preferred dividends in arrears. (Enter the account name only and do not provide the descriptive information provided in the question.)

CASTLE CORPORATION Balance Sheet (Partial)

December 31, 2014

$

$

:

$

Question Attempts: 0 of 5 used

Copyright © 2000-2014 by John Wiley & Sons, Inc. or related companies. All rights reserved.

Print by: Diana Urresta Waith AB116: Accounting II / 116_Unit 07 Assignment

*Problem 13-2A Fechter Corporation had the following stockholders’ equity accounts on January 1, 2014: Common Stock ($5 par) $528,650, Paid-in Capital in Excess of Par—Common Stock $216,590, and Retained Earnings $117,330. In 2014, the company had the following treasury stock transactions.

Fechter Corporation uses the cost method of accounting for treasury stock. In 2014, the company reported net income of $28,690.

Mar. 1 Purchased 6,560 shares at $9 per share. June 1 Sold 1,140 shares at $13 per share. Sept.1 Sold 1,330 shares at $10 per share. Dec. 1 Sold 1,430 shares at $6 per share.

Journalize the treasury stock transactions, and prepare the closing entry at December 31, 2014, for net income. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit

Mar. 1

June 1

Sept. 1

Dec. 1

Dec. 31

Open accounts for Paid-in Capital from Treasury Stock, Treasury Stock, and Retained Earnings. Post to these accounts using J10 as the posting reference. (Post entries in the order of journal entries presented in the previous part.) Paid-in Capital from Treasury Stock

Date Explanation Ref Debit Credit Balance

J10

J10

J10

Treasury Stock

Date Explanation Ref Debit Credit Balance

J10

J10

J10

J10

Retained Earnings

Date Explanation Ref Debit Credit Balance

Balance √

J10 Prepare the stockholders’ equity section for Fechter Corporation at December 31, 2014. (Enter the account name only and do not provide the descriptive information provided in the question.)

FECHTER CORPORATION Balance Sheet (Partial)

December 31, 2014

$

$

:

$

Question Attempts: 0 of 5 used

Copyright © 2000-2014 by John Wiley & Sons, Inc. or related companies. All rights reserved.

Order now and get 10% discount on all orders above $50 now!!The professional are ready and willing handle your assignment.

ORDER NOW »»