Scribd Logo
Upload

Welcome to Scribd!

  • 62 views

    Reconstruct Journal Entries at The End of Its First Year

    Uploaded by

    Let's Talk With Hassan
    Leo Company had various stock transactions and paid dividends in its first year of operations. It issued 1,000 shares of common stock at $11 per share. It also issued 600 shares of preferred stock to acquire equipment worth $69,000. The company earned $30,000 in net income and paid dividends of $8 per preferred share and $1 per common share. The summary provides ending account balances to reconstruct the journal entries for these transactions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Reconstruct Journal Entries at The End of Its First Year

    Uploaded by

    Let's Talk With Hassan
    62 views1 page
    Leo Company had various stock transactions and paid dividends in its first year of operations. It issued 1,000 shares of common stock at $11 per share. It also issued 600 shares of preferred stock to acquire equipment worth $69,000. The company earned $30,000 in net income and paid dividends of $8 per preferred share and $1 per common share. The summary provides ending account balances to reconstruct the journal entries for these transactions.

    Original Title

    Reconstruct Journal Entries at the End of Its First Year

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Leo Company had various stock transactions and paid dividends in its first year of operations. It issued 1,000 shares of common stock at $11 per share. It also issued 600 shares of preferred stock to acquire equipment worth $69,000. The company earned $30,000 in net income and paid dividends of $8 per preferred share and $1 per common share. The summary provides ending account balances to reconstruct the journal entries for these transactions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    62 views1 page

    Reconstruct Journal Entries at The End of Its First Year

    Uploaded by

    Let's Talk With Hassan
    Leo Company had various stock transactions and paid dividends in its first year of operations. It issued 1,000 shares of common stock at $11 per share. It also issued 600 shares of preferred stock to acquire equipment worth $69,000. The company earned $30,000 in net income and paid dividends of $8 per preferred share and $1 per common share. The summary provides ending account balances to reconstruct the journal entries for these transactions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Reconstruct journal Entries At the end of its first year

    #2541
    Reconstruct journal Entries At the end of its first year of operations, Leo Company lists the
    following accounts and ending account balances related to stock transactions and
    dividends:During the first year, the following events occurred:1. Subscription contracts were
    entered into for common stock at $9 per share and preferred stock at $112 per share. Common
    stock subscription required a $2-per-share down payment. Preferred stock subscriptions
    required no down payment. Shares (either common or preferred) were issued to subscribers
    upon full payment.2. One thousand shares of common stock were sold for $11 per share, and
    the stock was issued to shareholders. 3. Equipment with an appraised value of $69,000 was
    acquired by issuing 600 shares of preferred stock. The appraised value of the equipment was
    used to record the transaction.4. Net income of $30,000 was closed to Retained Earnings from
    Income Summary at the end of the year.5. Dividends of $8 per share on all the preferred stock
    outstanding and $1 per share on all the common stock out-standing were distributed at the end
    of the year (the company debited Retained Earnings and credited Cash for each
    dividend).Required:On the basis of the preceding information, reconstruct all the journal entries
    that the company made to record the stock transactions, net income and dividends. It may be
    helpful to begin by using T-accounts and entering the ending balances.View Solution:
    Reconstruct journal Entries At the end of its first year

    ANSWER
    http://paperinstant.com/downloads/reconstruct-journal-entries-at-the-end-of-its-first-year/

    1/1
    Powered by TCPDF (www.tcpdf.org)

    You might also like