Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. prepare a journal entry question 2 (13 marks - 20

Prepare a journal entry Question 2 (13 marks - 20 minutes) On January 1,...

70.2K

Verified Solution

Question

Finance

image

Prepare a journal entry

Question 2 (13 marks - 20 minutes) On January 1, 20x7, Hobbes Inc. had 50,000 shares of common shares issued and outstanding. The book value of those shares was $800,000. Furthermore, they had 20,000 $4, non-cumulative, preferred shares issued and outstanding which had a book value of $300,000 The following transactions took place in 20x7: Jan 31 Issued 50,000 common shares for $500,000 Mar 1 Issued 20,000 common shares for $240,000 Apr 30 Repurchased and cancelled 20,000 shares at $11 each. June 30 A 2:1 stock split was announced Aug 15 Issued 50,000 common shares for land and a building. An independent appraisal indicated that the market value of the building was $100,000 and the land was $350,000 Dec 15 Declared a divided of $2.00/share to shareholders of record on Dec 31. Required Prepare all journal entries to record the above transactions. Round any units to two decimals

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students