Reference no: EM132817275
Problem 1 - During its first year of operations, Benji Corporation had the following transactions pertaining to its common stock.
Jan. 10 Issued 70,000 shares for cash at $5 per share.
July 1 Issued 40,000 shares for cash at $7 per share.
Required -
(a) Journalize the transactions, assuming that the common stock has a par value of $5 per share.
(b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share.
Problem 2 - Jake Corporation issued 1,000 shares of stock.
Required - Prepare the entry for the issuance under the following assumptions.
(a) The stock had a par value of $5 per share and was issued for a total of $52,000.
(b) The stock had a stated value of $5 per share and was issued for a total of $52,000.
(c) The stock had no par or stated value and was issued for a total of $52,000.
(d) The stock had a par value of $5 per share and was issued to attorneys for services during incorporation valued at $52,000.
(e) The stock had a par value of $5 per share and was issued for land worth $52,000.
Problem 3 - On January 1, 2012, the stockholders' equity section of Joshua Corporation shows: Common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,200,000. During the year, the following treasury stock transactions occurred.
Mar. 1 Purchased 50,000 shares for cash at $15 per share.
July 1 Sold 10,000 treasury shares for cash at $17 per share.
Sept. 1 Sold 8,000 treasury shares for cash at $14 per share.
Required - Journalize the treasury stock transactions. Mar. 1, July 1, Sept. 1.
Problem 4 - The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Borkowski Corporation at December 31, 2012.
Common Stock ($5 stated value) $1,700,000
Paid-in Capital in Excess of Par-Preferred Stock 280,000
Paid-in Capital in Excess of Stated Value-Common Stock 900,000
Preferred Stock (8%, $100 par, noncumulative) 500,000
Retained Earnings 1,134,000
Treasury Stock (10,000 common shares) 120,000
Required - Prepare the stockholders equity section of the balance sheet at December 31, 2012.