Problem-15: Corporations: Organization and Capital Stock Transactions

Gillian corporation recently hired a new accountant with extensive experience in accounting for partnerships. Because of the pressure of the new job, the accountant was unable to review his textbooks on the topic of corporation accounting. During the first month, the accountant made the following entries for the corporation's Capital stock.

Instruction

On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions.

Solution

Gillian corporation
Journal Entries

Problems: Corporations: Organization and Capital Stock Transactions

Problem-01: Corporations: Organization and Capital Stock Transactions

DeLong Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 per value preferred stock, and 500,000 shares of no-par common stock with...

Problem-02: Corporations: Organization and Capital Stock Transactions

Fechter Corporation had the following stockholders equity accounts on January 1, 2019: Common Stock ($5 par) $50,000, Paid-in Capital in Excess of Par-Common Stock $200,000, and Retained Earnings $100,000. In...

Problem-03: Corporations: Organization and Capital Stock Transactions

The stockholders equity accounts of Castle Corporation on January 1, 2020, were as follows Preferred Stock (8%, $50 par, 10,000 shares authorized)$400,000 Common Stock ($1 stated value, 2,000,000 shares authorized)1,000,000...

Problem-04: Corporations: Organization and Capital Stock Transactions

Peck Corporation is authorized to issue 20,000 shares of $50 par value, 10% preferred-stock and 125,000 shares of $5 par value common stock. On January 1, 2019, the ledger contained...

Problem-05: Corporations: Organization and Capital Stock Transactions

The following stockholders equity accounts arranged alphabetically are in the ledger of Galindo Corporation at December 31, 2020. Common Stock ($5 stated value)$2,000,000 Paid-in Capital from Treasury Stock10,000 Paid-in Capital...

Problem-06: Corporations: Organization and Capital Stock Transactions

Irwin Corporation has been authorized to isue 20,000 shares of $100 par value, 10% preferred stock and 1,000,000 shares of no-par common stock. The corporation assigned a $2,50 stated value...

Problem-07: Corporations: Organization and Capital Stock Transactions

Andrea has prepared the following list of statements about corporations A corporation is an entity separate and district from its owners. As a legal entity, a corporation has most of...

Problem-08: Corporations: Organization and Capital Stock Transactions

During its first year of operations, Foyle Corporation had the following transactions pertaining to its common stock. Jan. 10Issued 70,000 shares for cash at $5 per share July 1Issued 40,000...

Problem-09: Corporations: Organization and Capital Stock Transactions

Osage Corporation issued 2,000 shares of stock. Instruction The stock had a par value of $5 per share and was issued for a total of $52,000. the stock had a...

Problem-10: Corporations: Organization and Capital Stock Transactions

Quay Co. had the following transactions during the current period. Mar. 2Issued 5,000 shares of $5 par value common stock to attorneys in payment of a bill for $30,000 for...

Problem-11: Corporations: Organization and Capital Stock Transactions

As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients. LR Corporation is a closely held corporation whose stock is...

Problem-12: Corporations: Organization and Capital Stock Transactions

On January 1, 2021, the stockholders equity section of Newlin 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...

Problem-13: Corporations: Organization and Capital Stock Transactions

Rinehart Corporation purchased from its stockholders 5,000 shares of its own previously issued stock for $255,000. It later resold 2,000 shares for $54 per share, then 2,000 more shares for...

Problem-14: Corporations: Organization and Capital Stock Transactions

Tran Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following...

Problem-15: Corporations: Organization and Capital Stock Transactions

Problem-16: Corporations: Organization and Capital Stock Transactions

The following stockholders equity accounts, arranged alphabetically, are in the ledger of Eudaley Corporation at December 31, 2020. Common Stock ($5 stated Value)$1,500,000 Paid-in Capital in Excess of Par-Preferred Stock280,000...

Problem-17: Corporations: Organization and Capital Stock Transactions

The stockholders equity section of Haley Corporation at December 31 is as follows. Instructions From a review of the stockholders' equity section, as chief accountant, write a memo to the...

Problem-18: Corporations: Organization and Capital Stock Transactions

The stockholders equity section of Aluminum Company of America (Alcoa) showed the following ( in alphabetical order): additional paid-in capital $6,101, common stock $925, preferred stock $56, retained earnings $7,428,...

Problem-19: Corporations: Organization and Capital Stock Transactions

The ledger of Rolling Hills Corporation contains the following accounts: Common Stock, Preferred Stock, Treasury stock, Paid-in Capital in Excess of Par-Preferred Stock, Paid-in Capital in Excess of Stated Value-Common...

Corporations: Organization and Capital Stock Transactions