Question

Kanish Corporation's general ledger includes the following account balances: Contributed Surplus Common Shares Retained Earnings $8,000...

Kanish Corporation's general ledger includes the following account balances:

Contributed Surplus

Common Shares

Retained Earnings

$8,000

$270,000

$85,000

The Contributed Surplus account arose from net excess of proceeds over cost on a previous cancellation of common shares. The average cost of the common shares bought and cancelled in the first two transactions is $30 per share.

Instructions

Assuming that the above balances existed before any of the transactions that follow, record the journal entries for each transaction.

(a)  Bought and cancelled 430 shares at $38 per share.

(b)  Bought and cancelled 200 shares at $44 per share.

(c)  Sold 3,200 shares at $41 per share.

(d)  Sold 1,500 shares at $47 per share.                                           

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
S. No. Particulars Debit($) Credit($)
a) Common Shares A/c Dr. (430*$38) 16340
To Cash A/c (430*$30) 12900
To General Reserve A/c 3440
b) Common Stock A/c Dr.(200*$44) 8800
To Cash A/c (200*$30) 6000
To General Reserve A/c 2800
c) Cash A/c Dr. (3200*$41) 131200
To Common stock (3200*$30) 96000
To Paid in Capital A/c 35200
d) Cash A/c Dr. (1500*$47) 70500
To Common stock A/c (1500*$30) 45000
To Paid in Capital A/c 25500
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Petra Corporation's, widely held, public company. Information about its shareholders equity is as follows: Petra Co....
Petra Corporation's, widely held, public company. Information about its shareholders equity is as follows: Petra Co. Shareholders’ equity December 31, 2019 Preferred shares, no par value, 8% cumulative, 1,000 issued and outstanding      $100,000 Common shares, 100,000 authorized, 12,000 issued and outstanding                   $180,000 Contributed Surplus-common shares                                                                         $6,000 Contributed Surplus-Preferred shares                                                                      $50,000 Retained earnings                                                                                                     $40,000 Instructions: 1- Prepare all journal entries for the following transaction (assuming all occurred during 2020): A) Jan 7, Issued 3,500 common shares at $19 per share for...
Before Pharoah Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among...
Before Pharoah Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share). Paid-in Capital in Excess of Par—Common Stock Common Stock Retained Earnings $93,900 $292,500 $85,600 Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes. (Credit account titles are automatically indented when amount is entered. Do not indent manually....
Before Indigo Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among...
Before Indigo Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share). Paid-in Capital in Excess of Par—Common Stock Common Stock Retained Earnings $107,700 $244,800 $75,400 Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes. (Credit account titles are automatically indented when amount is entered. Do not indent manually....
On January 1, Year 1, the general ledger of a company includes the following account balances:...
On January 1, Year 1, the general ledger of a company includes the following account balances:    Accounts Debit Credit Cash $ 59,300 Accounts Receivable 26,200 Allowance for Uncollectible Accounts $ 2,800 Inventory 36,900 Notes Receivable (5%, due in 2 years) 19,200 Land 161,000 Accounts Payable 15,400 Common Stock 226,000 Retained Earnings 58,400 Totals $ 302,600 $ 302,600    During January Year 1, the following transactions occur:    January 1 Purchase equipment for $20,100. The company estimates a residual value...
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts...
On January 1, 2021, the general ledger of Freedom Fireworks includes the following account balances: Accounts Debit Credit Cash $ 101,200 Accounts receivable 34,000 Inventory 152,000 Land 67,300 Buildings 120,000 Allowance for uncollectible accounts $ 1,800 Accumulated depreciation 9,600 Accounts payable 17,700 Bonds payable 120,000 Discount on bonds payable 30,000 Common stock 200,000 Retained earnings 155,400 Totals $ 504,500 $ 504,500 During January 2021, the following transactions occurred: January 1 Borrowed $100,000 from Captive Credit Corporation. The installment note bears...
Treasury stock. Agler Corporation's balance sheet reported the following: Capital stock outstanding, 2,000 shares, par $60...
Treasury stock. Agler Corporation's balance sheet reported the following: Capital stock outstanding, 2,000 shares, par $60 per share $120,000 Paid-in capital in excess of par 70,000 Retained earnings 150,000 The following transactions occurred this year: (a) Purchased 200 shares of capital stock to be held as treasury stock, paying $59 per share. (b) Sold 150 of the shares of treasury stock at $69 per share. (c) Sold the remaining shares of treasury stock at $54 per share. Instructions Prepare the...
On January 1, 2020, the general ledger of Redbud Company includes the following account balances:   ...
On January 1, 2020, the general ledger of Redbud Company includes the following account balances:    Accounts Debit Credit Cash $ 25,100 Accounts Receivable 44,500 Inventory 46,000 Land 85,600 Allowance for Uncollectible Accounts 3,500 Accounts Payable 27,200 Notes Payable (9%, due in 3 years) 46,000 Common Stock 72,000 Retained Earnings 52,500 Totals $ 201,200 $ 201,200 The $46,000 beginning balance of inventory consists of 460 units, each costing $100. During January 2020, Redbud had the following inventory transactions:    January...
the equity account for kalimantan corp showed the following balances on dec31 2016 preferred shares 2$...
the equity account for kalimantan corp showed the following balances on dec31 2016 preferred shares 2$ non cumulative unlimited share authorized     0$ common share unlimited shares authorized 100000 shares issued and outstanding    640,000 retained earnings     864000 the company completed these transactions during 2017 jan 10 issued 20000 common shares at 9.60 cash per share jan 15 the directors declared a 10% share dividend to jan 30 shareholders of record ,distributable on feb 15.
Stewart Corporation's balance sheet at December 31, 2016, showed the following:    Short-term investments, at fair...
Stewart Corporation's balance sheet at December 31, 2016, showed the following:    Short-term investments, at fair value               $40,000 Stewart Corporation's trading portfolio of stock investments consisted of the following at December 31, 2016:        Stock       Number of Shares   Cost      Conn Common Stock   200   $28,000    Hall Common Stock   300   9,000            $37,000 During 2017, the following transactions took place:    Feb.   5   Sold 100 shares of Conn common stock for $18,000.   ...
Agler Corporation's balance sheet reported the following: Capital stock outstanding, 6,000 shares, par $30 per share...
Agler Corporation's balance sheet reported the following: Capital stock outstanding, 6,000 shares, par $30 per share $180,000 Paid-in capital in excess of par 83,100 Retained earnings 108,900 The following transactions occurred this year: (a) Purchased 180 shares of capital stock to be held as treasury stock, paying $61 per share. (b) Sold 160 of the shares of treasury stock at $67 per share. (c) Sold the remaining shares of treasury stock at $48 per share. Prepare the journal entry for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT