Issuing Stock AndPreparing The Shareholders

Issuing Stock And Preparing The Stockholde

P12 30aaccounting 9ep12 30aissuing Stock And Preparing The Stockholde

P12-30A Accounting, 9e P12-30A Issuing stock and preparing the stockholders' equity section of the balance sheet LO 3 [15-20 minutes] Students please fill-in areas that are shaded Student Name Course Name Student ID: Date: Lincoln-Priest, Inc., was organized in 2011. At December 31, 2011, the Lincoln- Priest balance sheet reported the following stockholders’ equity: LINCOLN-PRIEST, INC. Stockholders' Equity December 31, 2011 Paid-in Capital: Preferred stock, 7%, $40 par, 110,000 shares authorized, none issued $0 Common stock, $1 par, 520,000 shares authorized, 61,000 shares issued and outstanding $61,000 Paid-in capital in excess of par - common 41000 Total paid-in capital $102,000 Retained earnings 29000 Total stockholders' equity $131,000 Requirements 1.

During 2012, the company completed the following selected transactions. Journalize each transaction. Explanations are not required. a. Issued for cash 1,300 shares of preferred stock at par value. b. Issued for cash 2,400 shares of common stock at a price of $5 per share. c.

Net income for the year was $74,000, and the company declared no dividends. Make the closing entry for net income. 2. Prepare the stockholders’ equity section of the Lincoln-Priest balance sheet at December 31, 2012. Test Your Knowledge P12-30A Req.

1 Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT a. b. c. Req. 2 LINCOLN-PRIEST, INC. Stockholders' Equity Paid-in capital: Paid-in capital in excess of par - common 41,000 Total paid-in capital 41,000 Retained earnings Total stockholder's equity $ 41,000 *61,000 + 2,400 = 63,400 shares Print Test Your Knowledge Example Jones Radiology Services Global Services Only Code Description Medicare Rate Our Fee 70010 Myelography, Posterior Fossa - Super & Interpretation $ 104.36 $ 313. Cisternography, Super & Interpretation $ 165.03 $ 495.

Eye, For Detection of Foreign Body $ 31.10 $ 93. Mandible, less then four views $ 37.17 $ 111. Mandible, 4 views $ 42.77 $ 128. Mastoids, less then three views $ 39.31 $ 117. Mastoids, complete, three view $ 61.22 $ 183.

Internal Auditory Meati, Complete $ 60.14 $ 180. Facial Bones, less then four views $ 32.86 $ 98. Facial Bones, Complete, Four Views $ 45.97 $ 137. Nasal Bones, Complete $ 36.11 $ 108. Dacryocystography, Super & Interpretation $ 16.17 $ 48.

Optic Foramina $ 38.90 $ 116. Orbits, Complete, minimum of four view $ 47.01 $ 141. Sinuses, paranasal, less then four views $ 33.97 $ 101. Sinuses, paranasal, mimimum of three views $ 42.41 $ 127. Sella Turcicia $ 32.50 $ 97.

Skull, less then four views $ 39.93 $ 119. Skull, complete, four views $ 50.84 $ 152. Teeth, single view $ 16.20 $ 48. Mouth, partial exam, less then complete mouth $ 40.78 $ 122. Mouth, complete $ 46.04 $ 138.

Tempmandibular joint, open and closed, unilateral $ 33.59 $ 100. Tempmandibular joint, open and closed, bilateral $ 52.45 $ 157.35 Wk5-Assignment Jones Radiology Services Global Services Only Code Description Medicare Rate (Non-Fac Par) Our Fee P12-29A Accounting, 9e P12-29A Journalizing corporate transactions and preparing the stockholders' equity section of the balance sheet LO 3 [20-25 minutes] Students please fill-in areas that are shaded Student Name Course Name Student ID: Date: B-Mobile Wireless needed additional capital to expand, so the business incorporated. The charter from the state of Georgia authorizes B-Mobile to issue 70,000 shares of 5%, $100-par preferred stock, and 110,000 shares of no-par common stock.

B-Mobile completed the following transactions: Oct 2 Issued 19,000 shares of common stock for equipment with a market value of $110,000. 6 Issued 800 shares of preferred stock to acquire a patent with a market value of $80,000. 9 Issued 15,000 shares of common stock for cash of $90,000. Requirements 1. Record the transactions in the general journal.

2. Prepare the stockholders’ equity section of the B-Mobile balance sheet at October 31. The ending balance of Retained earnings is $92,000. Test Your Knowledge P12-29A Req. 1 Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT Oct 2 Issued common stock to acquire equipment.

6 Issued preferred stock to acquire patent. 9 Issued common stock. Req. 2 B-Mobile Wireless Stockholders' Equity Paid-in capital: Total paid-in capital Retained earnings Total stockholder's equity $ - 0 &Lstudent name goes here&Rdate turned in goes here Print Test Your Knowledge P11-27A Accounting, 9e P11-27A Report liabilities on the balance sheet LO 4 [10-15 minutes] Students please fill-in areas that are shaded Student Name Course Name Student ID: Date: Link Back to Chapter 4 (Classified Balance Sheet). The accounts of Taylor Electronics Company are listed along with their balances before closing for the month ended March 31, 2012.

Accounts payable $ 76,000 Salary payable $ 9,500 Mortgage note payable, long-term 80,000 Bonds payable, current installment 30,000 Interest payable 19,000 Premium on all bonds payable Bonds payable, long-term 164,000 (all long-term) 11,000 Rory, capital 175,000 Unearned service revenue 3,000 Requirements 1. Report these liabilities on the Route Maker Wireless balance sheet, including headings and totals for current liabilities and long-term liabilities. Test Your Knowledge P11-27A Req. 1 Route Maker Wireless Balance Sheet (partial) March 31, 2012 LIABILITIES Current liabilities: Total current liabilities - 0 Long-term liabilities Total long-term liabilities - 0 Total liabilities $ - 0 &Lstudent name here&Rdate here Print Test Your Knowledge P11-26A Accounting, 9e P11-26A Journalizing and reporting bond transactions LO 3, 4 [20-25 minutes] Students please fill-in areas that are shaded Student Name Course Name Student ID: Date: The board of directors of Delta Health Spa authorizes the issuance of $600,000 of 5%, 10-year bonds payable.

The semiannual interest dates are May 31 and November 30. The bonds are issued on July 31, 2012, at par plus accrued interest. Requirements 1. Journalize the following transactions (Round your answers to the nearest whole dollar.): a. Issuance of the bonds on July 31, 2012. b.

Payment of interest on November 30, 2012. c. Accrual of interest on December 31, 2012. d. Payment of interest on May 31, 2013. 2. Report interest payable and bonds payable as they would appear on the Delta balance sheet at December 31, 2012.

Test Your Knowledge P11-26A Req. 1 Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT 2012 a. Jul 31 Issued bonds payable 2 months after the date of the bonds b. Nov 30 c. Dec.

31 Accrued interest 2013 d. May 31 Paid interest Req. 2 Balance at December 31, 2012: Current liabilities: Interest payable $ - 0 Long-term liabilities Bonds payable $ - 0 &L11-student&R4-23 Print Test Your Knowledge E12-19 Accounting, 9e E12-19 Calculating retained earnings LO 4 [10-15 minutes] Students please fill-in areas that are shaded Student Name Course Name Student ID: Date: Oulette Publishing Company has the following selected account balances at June 30, 2012. Inventory $ 112,000 Common stock, no par with $0.50 Machinery and equipment 108,000 stated value, 900 shares Dividends 8,000 authorized and issued 450 Depreciation expense 9,000 Accumulated depreciation 61,000 Rent expense 19,000 Salary expense 85,000 Utilities expense 5,000 Retained earnings, June 30, ,000 Cost of goods sold 81,000 Sales revenue 240,000 Requirements 1.

Journalize all required closing entries for the year. 2. Calculate the balance in Retained earnings at June 30, 2012. Use a T-account to show your calculations. Test Your Knowledge E12-19 Req.

1 Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT June 30 Sales revenue Income summary Close the revenue accounts 30 Income summary Cost of goods sold Depreciation expense Rent expense Salary expense Utilities expense Close the expense accounts 30 Income summary Retained earnings Close the income summary. 30 Retained earnings Dividends Req. 2 Retained earings Bal. 114, End Bal 114,000 &LJLM&Rapril Print Test Your Knowledge E12-17 Accounting, 9e E12-17 Issuing stock and preparing the stockholders' equity section of the balance sheet LO 3 [15-20 minutes] Students please fill-in areas that are shaded Student Name Course Name Student ID: Date: The charter for KCAS-TV, Inc., authorizes the company to issue 100,000 shares of $4, no-par preferred stock and 500,000 shares of common stock with $1 par value.

During its start-up phase, KCAS completed the following transactions: Sept 6 Issued 275 shares of common stock to the promoters who organized the corporation, receiving cash of $8,250. 12 Issued 400 shares of preferred stock for cash of $20,000. 14 Issued 1,600 shares of common stock in exchange for land valued at $18,000. 30 Closed net income of $32,000 into Retained earnings. Requirements 1.

Record the transactions in the general journal. 2. Prepare the stockholders’ equity section of the KCAS-TV balance sheet at September 30, 2012. Test Your Knowledge E12-17 Req. 1 Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT Sep 6 Sep 12 Sep 14 Sep 30 Req.

2 KCAS-TV Stockholders' Equity September 30, 2012 Paid-in capital: Preferred stock, no par, 100,000 shares authorized, 400 shares issued $ - Total stockholder's equity $ - 0 &Lstudent name &Rdate here Print Test Your Knowledge E11-19 Accounting, 9e E11-19 Journalizing bond transactions - year-end interest accrual LO 3 [10 minutes] Students please fill-in areas that are shaded Student Name Course Name Student ID: Date: Filmore Homebuilders issued $250,000 of 8%, 10-year bonds at par on September 30, 2012. Filmore pays semiannual interest on March 31 and September 30. Requirements 1. Journalize the issuance of the bonds payable on September 30, 2012. 2.

Journalize the accrual of interest on December 31, 2012. 3. Journalize the second payment on February 28, 2013 (do not round). Test Your Knowledge E11-19 Req. 1 Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT 2012 Jan 1 Issued bonds at par.

Req. 2 Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT 2012 Dec 31 Req. 3 Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT 2013 Mar 31 &Lstudent.&Rdate Print Test Your Knowledge E11-14 Accounting, 9e E11-14 Recording mortgage payable entries from an amortization schedule LO 1 [10-15 minutes] Students please fill-in areas that are shaded Student Name Course Name Student ID: Date: Kaiser Company’s partial amortization schedule follows: Payment Number Date Payment Interest Expense (Principal X 6% X 1/12) Principal Mortgage Balance Loan 1/1/13 $ 500,000./31/13 3,597.30 2,500.00 1,097.,902./28/13 3,597.30 2,494.51 1,102.,799./31/13 3,597.30 2,489.00 1,108.,691./30/13 3,597.30 2,483.46 1,113.,577./31/13 3,597.30 2,477.89 1,119.,458./30/13 3,597.30 2,472.29 1,125.,333./31/13 3,597.30 2,466.67 1,130.,202./31/13 3,597.30 2,461.01 1,136.,066./30/13 3,597.30 2,455.33 1,141.,924./31/13 3,597.30 2,449.62 1,147.,776./30/13 3,597.30 2,443.88 1,153.,623./31/13 3,597.30 2,438.12 1,159.,464. totals 43,167.,631.,535.82 Requirements 1.

Journalize the note issuance and the reclassification of the current portion on January 1, 2013 (explanations are not required). 2. What is the balance in Estimated warranty payable? 3. Journalize the second payment on February 28, 2013 (do not round).

Test Your Knowledge E11-14 Req. 1 Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT 2013 Jan 1 Jan 1 Req. 2 Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT 2013 Jan 31 Req. 3 Journal DATE ACCOUNTS AND EXPLANATIONS DEBIT CREDIT 2013 Feb 28 Print Test Your Knowledge