Posted: January 17th, 2022
1. For each of the following independent situations, present the necessary journal entry:
(a) Declared and distributed a 5% share dividend on 100,000 shares of common shares outstanding. Market price per share on this date was $12.
(b) With 250,000 shares of common shares outstanding, declared and distributed a 2 for 1 share split.
(c) Declared and distributed a 20% share dividend on 100,000 shares of common shares outstanding. Market price per share on this date was $11.
2. Diego Corp received its charter and began business in 2020. The company was authorized to issue 20,000, $5, noncumulative preferred shares and an unlimited number of common shares. Prepare journal entries to record the following transactions that occurred during 2020:
Sep-01 Honoured a $55,000, 12%, 120 note payable, in exchange for 800 preferred shares.
Oct-12 Sold 1,500 preferred shares for $70 per share, cash.
Nov-03 Sold 2,000 common shares at $22 per share.
3. The partners of the Blue Tooth Partnership agree to liquidate. After all liabilities of $100,000 are paid, the capital account balances are: Wong, $80,000; Winslow, $70,000; and Peters, ($4,000). Prepare the journal entries required to end the partnership in the following situations:
a. Peters agrees to pay $4,000 in cash to settle his deficiency. 5
b. Peters is unable to pay his capital deficiency 5
4. Write Short notes on the following:
a. Stock Split 5
b. Preferred Share 5
c. Accounting Information System 5
5. Ms. X plans to leave the JT Partnership. At this time her capital account is $48,000. The remaining partners, Ms. Y and Ms. Z, agree to pay Ms. X $58,000. Prepare the journal entry to record the withdrawal. Assume the partners have no agreement for sharing profits and losses. 5
Place an order in 3 easy steps. Takes less than 5 mins.