Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of common shares. During January 2020, its first month of operations, the following selected transactions occurred: Jan. 1 1,000 shares were issued to the organizers of the corporation. The total value of the shares was determined to be $12,700. 5 15,000 shares were sold to various shareholders for $14.20 each. 15 The board of directors declared a cash dividend of $0.82 per common share to shareholders of record on January 19, payable January 31. 20 4,000 shares were issued in exchange for land valued at $50,800. The shares were actively trading on this date at $12.20 per share. 31 Closed the Income Summary account, which showed a credit balance of $172,000. 31 Paid the dividends declared on January 15. Required: a. Journalize the above transactions. The Company does not use a Cash Dividends Account. b. Prepare the equity section of Westby’s balance sheet at January 31, 2020. c. What was the average issue price per common share? (Round your answer to 2 decimal places.)
Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of common shares. During January 2020, its first month of operations, the following selected transactions occurred: Jan. 1 1,000 shares were issued to the organizers of the corporation. The total value of the shares was determined to be $12,700. 5 15,000 shares were sold to various shareholders for $14.20 each. 15 The board of directors declared a cash dividend of $0.82 per common share to shareholders of record on January 19, payable January 31. 20 4,000 shares were issued in exchange for land valued at $50,800. The shares were actively trading on this date at $12.20 per share. 31 Closed the Income Summary account, which showed a credit balance of $172,000. 31 Paid the dividends declared on January 15. Required: a. Journalize the above transactions. The Company does not use a Cash Dividends Account. b. Prepare the equity section of Westby’s balance sheet at January 31, 2020. c. What was the average issue price per common share? (Round your answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of common shares. During January 2020, its first month of operations, the following selected transactions occurred:
| Jan. | 1 | 1,000 shares were issued to the organizers of the corporation. The total value of the shares was determined to be $12,700. | |
| 5 | 15,000 shares were sold to various shareholders for $14.20 each. | ||
| 15 | The board of directors declared a cash dividend of $0.82 per common share to shareholders of record on January 19, payable January 31. | ||
| 20 | 4,000 shares were issued in exchange for land valued at $50,800. The shares were actively trading on this date at $12.20 per share. | ||
| 31 | Closed the Income Summary account, which showed a credit balance of $172,000. | ||
| 31 | Paid the dividends declared on January 15. |
Required:
a. Journalize the above transactions. The Company does not use a Cash Dividends Account.
b. Prepare the equity section of Westby’s
c. What was the average issue price per common share? (Round your answer to 2 decimal places.)
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