Solutions15-12
Assets = Liabilities +
Equity (Class.)
15.24 (amounts in
US
$)
a. Cash (= 50,000 X $30) ……………………………………….
250,00
1,250,00
Assets = Liabilities +
Shareholders’
Equity (Class.)
15-13Solutions
15.24 continued.
b. Cash (= 20,000 X $100) …………………………………….. 2,000,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
d. Convertible Preferred Stock………………………………. 400,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
e. Compensation Expense (= 5,000 X $12) ……………… 60,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
Solutions15-14
15.25 (Journal entries for the issuance of common stocks.) (amounts in
US$)
a. I
n
ve
n
t
or
y …………………………………………………………. 175,0
00
Assets = Liabilities +
Shareholders’
Equity (Class.)
Assets = Liabilities +
Shareholders’
Equity (Class.)
+1,000,000 +1,000,000
c. Cash (= 5,000 X
120,000
Warrants) (= 5,000 X $8)
………………………………..
40,000
Common Stock (= 5,000 X $1)
……………………..
Additional Paid-In Cap
i
ta
l
…………………………
155,00
0
Assets = Liabilities +
Shareholders’
Equity (Class.)
d. Preferred Stock (= 10,000 X $50) ……………………….. 500,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
15-15Solutions
15.26 (Wilson Supply Company; transactions to incorporate and run a
business.) (amounts in US$)
a. 1/02
Assets = Liabilities +
Shareholders’
Equity (Class.)
b. 1/06
Assets = Liabilities +
Shareholders’
Equity (Class.)
c. 1/08
Assets = Liabilities +
Shareholders’
Equity (Class.)
d. 1/09
No entry.
Solutions15-16
15.26 continued.
e. 1/12
Inventories
………………………………………………..
……..
50,000
L
a
n
d ………………………………………………………..
………
80,000
B
uil
d
in
g ……………………………………………………
……..
210,000
Equipment
………………………………………………..
……..
120,000
Preferred Stock—$100 Par
Value
…………………..
100,00
0
Common Stock—$30 Stated Value
………………..
360,00
0
Assets = Liabilities +
Shareholders’
Equity (Class.)
+50,000 +100,000 ContriCap
+80,000 +360,000 ContriCap
+210,000
+120,000
f. 7/03
Retained Earnings (Dividends
Declared)
……………. 20,000
Dividends Payable on Preferred
Stock
…………….20,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
+20,000 –20,000 RE
$100 X (0.08/2) X (4,000 + 1,000) shares =
$20,000.
g. 7/05
Ca
sh
………………………………………………………..
………
825,000
Common Stock—$30 Stated Value
………………..
750,00
0
Additional Paid-In Cap
i
ta
l
…………………………….
75,00
0
Assets = Liabilities +
Shareholders’
Equity (Class.)
15-17Solutions
15.26 continued.
h. 7/25
Dividends Payable on Preferred
Stock
……………….. 20,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
–20,000 –20,000
i. 10/02
Assets = Liabilities +
Shareholders’
Equity (Class.)
+39,300 –39,300 RE
j. 10/25
Assets = Liabilities +
Shareholders’
Equity (Class.)
–39,300 –39,300
15.27 (Fisher Company; reconstructing transactions involving
shareholders’
equity.) (amounts in US$)
Solutions15-18
15.27 continued.
d. If the Additional Paid-In Capital is $31,440, then $30,000 [=
6,000
X
($15 – $10)] represents contributions in excess of par
e. (1) Cash (= 6,000 X $15) …………………………………. 90,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
Assets = Liabilities +
Shareholders’
Equity (Class.)
Assets = Liabilities +
Shareholders’
Equity (Class.)
Assets = Liabilities +
Shareholders’
Equity (Class.)
15-13Solutions
15.24 continued.
b. Cash (= 20,000 X $100) …………………………………….. 2,000,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
d. Convertible Preferred Stock………………………………. 400,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
e. Compensation Expense (= 5,000 X $12) ……………… 60,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
Solutions15-14
15.25 (Journal entries for the issuance of common stocks.) (amounts in
US$)
a. I
n
ve
n
t
or
y …………………………………………………………. 175,0
00
Assets = Liabilities +
Shareholders’
Equity (Class.)
Assets = Liabilities +
Shareholders’
Equity (Class.)
+1,000,000 +1,000,000
c. Cash (= 5,000 X
120,000
Warrants) (= 5,000 X $8)
………………………………..
40,000
Common Stock (= 5,000 X $1)
……………………..
Additional Paid-In Cap
i
ta
l
…………………………
155,00
0
Assets = Liabilities +
Shareholders’
Equity (Class.)
d. Preferred Stock (= 10,000 X $50) ……………………….. 500,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
15-15Solutions
15.26 (Wilson Supply Company; transactions to incorporate and run a
business.) (amounts in US$)
a. 1/02
Assets = Liabilities +
Shareholders’
Equity (Class.)
b. 1/06
Assets = Liabilities +
Shareholders’
Equity (Class.)
c. 1/08
Assets = Liabilities +
Shareholders’
Equity (Class.)
d. 1/09
No entry.
Solutions15-16
15.26 continued.
e. 1/12
Inventories
………………………………………………..
……..
50,000
L
a
n
d ………………………………………………………..
………
80,000
B
uil
d
in
g ……………………………………………………
……..
210,000
Equipment
………………………………………………..
……..
120,000
Preferred Stock—$100 Par
Value
…………………..
100,00
0
Common Stock—$30 Stated Value
………………..
360,00
0
Assets = Liabilities +
Shareholders’
Equity (Class.)
+50,000 +100,000 ContriCap
+80,000 +360,000 ContriCap
+210,000
+120,000
f. 7/03
Retained Earnings (Dividends
Declared)
……………. 20,000
Dividends Payable on Preferred
Stock
…………….20,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
+20,000 –20,000 RE
$100 X (0.08/2) X (4,000 + 1,000) shares =
$20,000.
g. 7/05
Ca
sh
………………………………………………………..
………
825,000
Common Stock—$30 Stated Value
………………..
750,00
0
Additional Paid-In Cap
i
ta
l
…………………………….
75,00
0
Assets = Liabilities +
Shareholders’
Equity (Class.)
15-17Solutions
15.26 continued.
h. 7/25
Dividends Payable on Preferred
Stock
……………….. 20,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
–20,000 –20,000
i. 10/02
Assets = Liabilities +
Shareholders’
Equity (Class.)
+39,300 –39,300 RE
j. 10/25
Assets = Liabilities +
Shareholders’
Equity (Class.)
–39,300 –39,300
15.27 (Fisher Company; reconstructing transactions involving
shareholders’
equity.) (amounts in US$)
Solutions15-18
15.27 continued.
d. If the Additional Paid-In Capital is $31,440, then $30,000 [=
6,000
X
($15 – $10)] represents contributions in excess of par
e. (1) Cash (= 6,000 X $15) …………………………………. 90,000
Assets = Liabilities +
Shareholders’
Equity (Class.)
Assets = Liabilities +
Shareholders’
Equity (Class.)
Assets = Liabilities +
Shareholders’
Equity (Class.)