Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: Collected $34 cash per share from four individuals and issued 4,400 shares of common stock to each. Issued 5,400 shares of common stock to an outside investor at $34 cash per share. Issued 7,400 shares of preferred stock at $19 cash per share. Required: Prepare the journal entries indicated for each of these transactions. Prepare the stockholders’ equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $30,000. No dividends were declared

Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: Collected $34 cash per share from four individuals and issued 4,400 shares of common stock to each. Issued 5,400 shares of common stock to an outside investor at $34 cash per share. Issued 7,400 shares of preferred stock at $19 cash per share. Required: Prepare the journal entries indicated for each of these transactions. Prepare the stockholders’ equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $30,000. No dividends were declared

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...

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Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: Collected $41 cash per share from four individuals and issued 5,100 shares of common stock to each. Issued 6,100 shares of common stock to an outside investor at $41 cash per share. Issued 8,100 shares of preferred stock at $21 cash per share. Required: Prepare the journal entries indicated for each of these transactions. Prepare the stockholders’ equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $37,000. No dividends were declared.
Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no- par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: Collected $48 cash per share from four individuals and issued 5,800 shares of common stock to each. Issued 6,800 shares of common stock to an outside investor at $48 cash per share. Issued 8,800 shares of preferred stock at $17 cash per share. Required: Prepare the journal entries indicated for each of these transactions. Prepare the stockholders' equity section of the balance sheet at December 31. At the end of the year, the accounts reflected net income of $44,000. No dividends were declared.