None Sarasota Corporation, a private corporation, was organized on February 1.2023. It is authorized to issue 88,800, $6 noncumulative preferred shares, andan unlimited number of common shares. The following transactions werecompleted during the first year:Feb. 10Issued 71,040 common shares at $4 per share.Issued 4,440 preferred shares at $114 per shareIssued 19,980 common shares for land. The land's asking priceIssued 69,264 common shares at $4.50 per share.Mar. 1Apr. 1June 20July 7Sept. 1Issued 8,880 common shares at $5 per share.Nov. 1Issued 888 preferred shares at $120 per share.Issued 8,880 common shares to lawyers to pay for their bill ofJournalize the transactions. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. If no entry is required,select "No Entry" for the account titles and enter O for the amounts. Recordjournal entries in the order presented in the problem. List all debit entries beforecredit entries.)

In the given transactions, Sarasota Corporation, a private corporation, went through several…

Answered: Sarasota Corporation, a private…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 6PA: EllaJane Corporation was organized several years ago and was authorized to issue 4,000,000 shares of...

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Paydirt Limestone, Incorporated was organized several years ago and was authorized to issue 3,000,000 shares of $40 par value 9% preferred stock. It is also authorized to issue 3,750,000 shares of $2 par value common stock. In its fifth year, the corporation has the following transactions: Journalize the transactions.
Madraza Corporation was incorporated on July 1, 20A with authorized ordinary share capita of P1,000,000 and preference share of P2,000,000 with par value of P100 each. During the year, the corporation had the following transactions affecting the Shareholders' Equity: 1st: 120 ordinary shares were issued for cash at par value. 2nd: 380 ordinary shares were issued in exchange for land. The fair market value of land is P50,000. 3rd: 200 ordinary shares were issued in payment of legal expenses incurred during the incorporation process, P25,000. Q-8 How much is the balance of Ordinary Share Capital account? a) P60,000 b) P70,000 c) PS0,000 d) none of these Q-9 What amount of Share Premium should be reported in the Statement of Financial Position? a) P17,000 b) P19,000 c) d) P21,000 none of these
Blue Corp., a private corporation, received its articles of incorporation on January 3, 2021. It is authorized to issue an unlimited number of common shares and $1 preferred shares. It had the following share transactions during the year: Jan. 12 Issued 50,000 common shares for $5 per share. 24 Issued 950 common shares in payment of a $4,550 bill for legal services. July 11 Issued 1,000 preferred shares for $25 per share. Oct. 1 Issued 10,000 common shares in exchange for land. The land's fair value was estimated to be $55,600. Blue's accountant estimated that the fair value of the shares issued might be as high as $6 per share.
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Hammond Manufacturing Inc. was legally incorporated on January 2, 2023. Its articles of incorporation granted it the right to issue an unlimited number of common shares and 100,000 shares of $14.40 non-cumulative preferred shares. The following transactions are among those that occurred during the first three years of operations: 2023 Jan. Mar. Dec. 12 Issued 40,000 common shares at $4.80 each. 20 Issued 6,000 common shares to promoters who provided legal services that helped to establish the company. These services had a fair value of $36,000. 31 Issued 80,000 common shares in exchange for land, building, and equipment, which have fair market values of $360,000, $480,000, and $48,000, respectively. 4 Purchased equipment at a cost of $8,160 cash. This was thought to be a special bargain price. It was felt that at least $10,800 would normally have had to be paid to acquire this equipment. 31 During 2023, the company incurred a loss of $96,000. The Income Summary account was closed. 2024…
Oriole Inc. (OI) is a backyard pond design and installation company. Ol was incorporated during 2023, with an unlimited number of common shares, and 42,000 preferred shares with a $3 dividend rate authorized. Ol follows ASPE. The following transactions took place during the first year of operations with respect to these shares: Jan. 1 Jan. 15 Feb. 20 Mar. 3 May 10 Sept. 23 Nov. 28 Dec. 31 The articles of incorporation were filed and state that an unlimited number of common shares and 42,000 preferred shares are authorized. Dec. 31 25,200 common shares were sold by subscription to 3 individuals, who each purchased 8,400 shares for $42 per share. The terms require 8% of the balance to be paid in cash immediately. The balance was to be paid by December 31, 2024, at which time the shares will be issued. 58,800 common shares were sold by subscription to 7 individuals, who each purchased 8,400 shares for $42 per share. The terms require that 8% of the balance be paid in cash immediately,…
King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 7 percent, $25 par value, authorized 49,000 shares. Common shares: no par value, authorized 179,500 shares. During year 1, the following transactions occurred in the order given: a. Sold and issued 24,500 common shares to each of the three organizers. Collected $10 cash per share from two of the organizers, and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the shares immediately. Assume that 35 percent of the non-cash payment received applies to the building. b. Sold and issued 6,900 preferred shares at $25 per share. Collected the cash and issued the shares immediately. c. Sold and issued 2,900 preferred shares at $25 and 2,900 common shares at $13 per share. Collected the cash and issued the shares immediately. d. The operating results at the end of year 11 were as follows: Revenues Expenses,…

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