Reference no: EM131594704
Q1. Finney Corporation is authorized to issue 1,000,000 shares of $2 par value common stock. During 2017, its first year of operation, the company has the following stock transactions:
Jan. 1 - Paid the state $2,000 for incorporation fees.
Jan. 15 - Issued 500,000 shares of stock at $7 per share.
Jan. 30 - Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $5,000.
July 2 - Issued 100,000 shares of stock for land. The land had an asking price of $900,000. The stock is currently selling on a national exchange at $8 per share.
Instructions: Journalize the transactions with explanations for Finney Corporation.
Q2. Walton Corporation has the following stockholders' equity accounts on January 1, 2016:
Common Stock, $10 par value - $1,500,000
Paid-in Capital in Excess of Par - 200,000
Retained Earnings - 500,000
Total Stockholders' Equity - $2,200,000
The company uses the cost method to account for treasury stock transactions. During 2016, the following treasury stock transactions occurred:
April 1 - Purchased 9,000 shares at $15 per share.
August 1 - Sold 3,000 shares at $18 per share.
October 1 - Sold 3,000 shares at $13 per share.
Instructions: Journalize the treasury stock transactions with explanations for 2016.
Attachment:- ASSIGNMENT WORKBOOK.rar