Question

Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2017,...

Overland Corporation is authorized to issue 250,000 shares of $1 par value common stock. During 2017, Overland Corporation took part in the following selected transactions.
? Issued 55,000 shares of stock at $76 per share, less costs related to the issuance of the stock totaling $27,000.
? Issued 10,000 shares of stock for land appraised at $815,000. The stock was actively traded on a national stock exchange at approximately $78 per share on the date of issuance.
? Purchased 6,000 shares of treasury stock at $74 per share. The treasury shares purchased were issued in 2006 at $46 per share.
Instructions
(a) Prepare the journal entry to record item 1.
(b) Prepare the journal entry to record item 2.
(c) Prepare the journal entry to record item 3 using the cost method.

Homework Answers

Answer #1

Solution:

Journal Entries - Overland Corporation
Event Particulars Debit Credit
a Cash Dr (55000*$76 - $27,000) $4,153,000.00
      To common stock $55,000.00
      To Paid in capital in excess of par - Common stock $4,098,000.00
(To record issue of shares)
b Land Dr $780,000.00
      To common stock $10,000.00
      To Paid in capital in excess of par - Common stock $770,000.00
(To record purchase of land by issuing shares)
c Treasury Stock Dr $444,000.00
      To Cash $444,000.00
(To record purchase of own shares)
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ryuji Corporation is authorized to issue 53,000 shares of $5 par value common stock. During 2020,...
Ryuji Corporation is authorized to issue 53,000 shares of $5 par value common stock. During 2020, Blue took part in the following selected transactions. 1. Issued 5,100 shares of stock at $49 per share, less costs related to the issuance of the stock totaling $6,800. 2. Issued 1,100 shares of stock for land appraised at $53,000. The stock was actively traded on a national stock exchange at approximately $50 per share on the date of issuance. 3. Purchased 480 shares...
Exercise 15-6 Flounder Corporation is authorized to issue 50,000 shares of $5 par value common stock....
Exercise 15-6 Flounder Corporation is authorized to issue 50,000 shares of $5 par value common stock. During 2017, Flounder took part in the following selected transactions. 1. Issued 4,600 shares of stock at $48 per share, less costs related to the issuance of the stock totaling $6,500. 2. Issued 1,000 shares of stock for land appraised at $50,000. The stock was actively traded on a national stock exchange at approximately $49 per share on the date of issuance. 3. Purchased...
E 11-4A. Treasury Stock Coastal Corporation issued 25,000 shares of $5 par value common stock at...
E 11-4A. Treasury Stock Coastal Corporation issued 25,000 shares of $5 par value common stock at $15 per share and 6,000 shares of $50 par value, eight percent preferred stock at $85 per share.  Later, the company purchased 3,000 shares of its own common stock at $20 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares. b. Assume that Coastal sold 2,000 shares of the treasury stock at $25 per share.  Prepare...
Domaine Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2018,...
Domaine Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2018, the company has the following stock transactions. Jan. 15 Issued 500,000 shares of stock at $7 per share. Sept. 5 Purchased 30,000 shares of common stock for the treasury at $9 per share. Journalize the transactions for Domaine Corporation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the...
Keira’s Kites is authorized to issue 250,000 shares of $2 par value common and had 75,000...
Keira’s Kites is authorized to issue 250,000 shares of $2 par value common and had 75,000 shares issues and outstanding at Dec 31st 2019. stock. During 2020 Keira took part in the following transactions: Issued 40,000 shares of common stock at $50 per share Purchased 15,000 shares for the Treasury at $54 per share. Resold 4,000 shares of the Treasury Stock at $56 per share Resold 5,000 shares of the Treasury stock at $48 per share. Required: Record the entries...
Carp Corporation is authorized to issue 2,000,000 shares of $1 par value common stock. During 2018,...
Carp Corporation is authorized to issue 2,000,000 shares of $1 par value common stock. During 2018, the company has the stock transactions listed below. Journalize the transactions for Carp Corporation in spaces provided below. Jan. 15 Issued 700,000 shares of stock at $7 per share. Sept. 5 Purchased 20,000 shares of common stock for the treasury at $8 per share. Dec. 6 Declared a $0.50 per share dividend to the remaining stockholders of record on December 20, payable January 3,...
Assume that 2,000 shares of common stock with a par value of $12 and a market...
Assume that 2,000 shares of common stock with a par value of $12 and a market price of $16 per share are issued in exchange for land with a fair market value of $32,000. a. Prepare the journal entry to record the transaction. b. If the land's appraised fair market value were $33,000, what would be the correct entry to record the transaction? c. Prepare the necessary journal entry, assuming the same facts as in (b), except that the stock...
Halpern Corporation is authorized to issue 1,000,000 shares of $3 par value common stock. During 2015,...
Halpern Corporation is authorized to issue 1,000,000 shares of $3 par value common stock. During 2015, its first year of operation, the company has the following stock transactions. Jan.     1     Paid the state $5,000 for incorporation fees. Jan.     15        Issued 500,000 shares of stock at $6 per share. Jan.     30        Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a...
Finney Corporation is authorized to issue 1,000,000 shares of $2 par value common stock. During 2005,...
Finney Corporation is authorized to issue 1,000,000 shares of $2 par value common stock. During 2005, its first year of operation, the company has the following stock transactions. Jan. 1 Paid the state $2,000 for incorporation fees. Jan. 15 Issued 500,000 shares of stock at $7 per share. Jan. 30 Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value...
Sally Corporation is authorized to issue 1,000,000 shares of $3 par value common stock. During 2015,...
Sally Corporation is authorized to issue 1,000,000 shares of $3 par value common stock. During 2015, its first year of operation, the company has the following stock transactions. Jan 1 paid the state $5000 for incorporation fees Jan 15 Issued 500,000 shares of stock at $6 per share Jan 30 Attorneys for the company accepted 500 shares of common stock as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value...