On January 5, 2020, Bramble Corporation received a charter granting the right to issue 4,600 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 49,800 shares of $10 par value common stock. It then completed these transactions.Jan. 11 Issued 19,300 shares of common stock at $16 per share.Feb. 1 Issued to Sanchez Corp. 3,600 shares of preferred stock for the following assets: equipment with a fair value of $50,600; a factory building with a fair value of $153,000; and land with an appraised value of $290,000.July 29 Purchased 2,000 shares of common stock at $19 per share. (Use cost method.)Aug. 10 Sold the 2,000 treasury shares at $15 per share.Dec. 31 Declared a $0.45 per share cash dividend on the common stock and declared the preferred dividend.Dec. 31 Closed the Income Summary account. There was a $162,500 net income. Record the journal entries for the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record entries in the order displayed in the problem statement. Round answers to 0 decimal places, e.g. $5,275.) DateAccount Titles and ExplanationDebitCreditJan. 11Feb. 1July 29Aug. 10Dec. 31Feb. 1Aug. 10> Aug. 10>

When shares or stock is issued in exchange for an asset, such stock is valued at cost of the asset.…

Answered: Record the journal entries for the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

On January 5, 2020, Bramble Corporation received a charter granting the right to issue 4,600 shares of $100 par value, 8% cumulative and nonparticipating preferred stock, and 49,800 shares of $10 par value common stock. It then completed these transactions.

Jan. 11		Issued 19,300 shares of common stock at $16 per share.
Feb. 1		Issued to Sanchez Corp. 3,600 shares of preferred stock for the following assets: equipment with a fair value of $50,600; a factory building with a fair value of $153,000; and land with an appraised value of $290,000.
July 29		Purchased 2,000 shares of common stock at $19 per share. (Use cost method.)
Aug. 10		Sold the 2,000 treasury shares at $15 per share.
Dec. 31		Declared a $0.45 per share cash dividend on the common stock and declared the preferred dividend.
Dec. 31		Closed the Income Summary account. There was a $162,500 net income.

Record the journal entries for the transactions listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record entries in the order displayed in the problem statement. Round answers to 0 decimal places, e.g. $5,275.)

Date
Account Titles and Explanation
Debit
Credit
Jan. 11
Feb. 1
July 29
Aug. 10
Dec. 31
Feb. 1
Aug. 10
>

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions