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    Date Transaction Debit Credit

    Uploaded by

    Clyde Ian Brett Peña
    The document shows transactions for a company from January to November. In January, the company issued 200,000 common shares for $23 per share, raising $4.6 million. In March, the company issued 17,000 preferred shares for $119 per share, raising $2 million. In April, the company issued 3,000 common shares valued at $60,000 for land.

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    Date Transaction Debit Credit

    Uploaded by

    Clyde Ian Brett Peña
    17 views9 pages
    The document shows transactions for a company from January to November. In January, the company issued 200,000 common shares for $23 per share, raising $4.6 million. In March, the company issued 17,000 preferred shares for $119 per share, raising $2 million. In April, the company issued 3,000 common shares valued at $60,000 for land.

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    ACCT 2208 02-13-2021

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    The document shows transactions for a company from January to November. In January, the company issued 200,000 common shares for $23 per share, raising $4.6 million. In March, the company issued 17,000 preferred shares for $119 per share, raising $2 million. In April, the company issued 3,000 common shares valued at $60,000 for land.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    17 views9 pages

    Date Transaction Debit Credit

    Uploaded by

    Clyde Ian Brett Peña
    The document shows transactions for a company from January to November. In January, the company issued 200,000 common shares for $23 per share, raising $4.6 million. In March, the company issued 17,000 preferred shares for $119 per share, raising $2 million. In April, the company issued 3,000 common shares valued at $60,000 for land.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 9

    Date Transaction Debit Credit

    10-Jan-20 Cash 4,600,000


    Common Shares 4,600,000
    Issued 200,000 common shares for $23 per share

    1-Mar-20 Cash 2,023,000


    Preferred Shares 2,023,000
    Issued 17,000 preferred shares for $119 per share

    1-Apr-20 Land 60,000 Priority of value of consideration:


    Common Shares 60,000 1. Fair Value of Asset received
    Issued 3,000 common shares for Land 2. Fair Value of Common Shares at ti
    Whichever is more readily determinab
    1-May-20 Cash 360,000
    Common Shares 360,000 Date No. of Shares
    Issued 20,000 common shares for $18 per share 1-Jan-20 200,000
    1-Apr-20 3,000
    1-Aug-20 Legal Expenses 19,000 1-May-20 20,000
    Common Shares 19,000 1-Aug-20 1,000
    Issued 1,000 common shares for legal services 1-Sep-20 32,500
    BALANCE 256,500
    1-Sep-20 Cash 520,000
    Common Shares 520,000
    Issued 32,500 common shares for $16 per share

    1-Nov-20 Cash 187,500


    Preferred Shares 187,500
    Issued 1,500 preferred shares for $125 per share
    ue of consideration: Fair Value, Market Value, "currently traded at"
    Asset received
    Common Shares at time of issue
    ore readily determinable

    Amount
    4,600,000
    60,000
    360,000
    19,000
    520,000
    5,559,000 $ 21.67 per share
    Date Transaction Debit Credit Date No. of Shares
    1 Cash 172,000 Balance 40,000
    Common Shares 172,000 1 6,000
    6,000 shares * $29 = $174,000 2 3,750
    $174,000 - $ 2,000 issue cost Before 3 49,750
    3 (500)
    2 Land 130,000 Balance 49,250
    Common Shares 130,000

    3 Common Shares 15,000


    Contributed Surplus 1,000 Loss on repurchase?
    Cash 14,000
    Amount
    1,190,500
    172,000
    130,000
    1,492,500 30
    (15,000)
    1,477,500 30
    Retained Earnings: $95,000 Preferred Common Total
    a) Preferred Non-Cumulative and Non-participating 21,000 74,000 95,000
    b) Preferred Cumulative and Non-participating 63,000 32,000 95,000
    Cumulative Dividends = unpaid dividends would accumulate over time even if dividends are not declared
    Non-cumulative = only receive dividends when declared
    Participating = Preferred shareholders get dividends in addition to the dividends they already; get dividend
    Non-participating = only receive the dividends they are entitled to
    are not declared

    ds they already; get dividend shares from dividends available to ordinary shareholders
    Journal Entries
    1) 2 for 1 Stock Split
    Increasing the volume of shares (2 shares for every 1 share outstanding)
    Decreasing the share value (For every $1 share value, divide by 2)

    Memo: 2 for 1 Stock Split; Common shares issued and oustanding are 2,000,000 shares for $17 per share
    Share split 1,000,000 2 2,000,000
    Share value 34 2 17
    34,000,000 34,000,000

    2) Stock Dividends
    Dividend 143,000,000 Retained Earnings
    Stock Dividends Distributable 143,000,000 Dividends
    Date of declaration

    Stock Dividends Distributable 143,000,000


    Common Shares 143,000,000
    Date of payment
    Share Volume Increase
    Per Share Value Decrease
    Total Share Value Same

    r $17 per share

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