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    Figie Ku
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    Benji Corporation issued common stock over two transactions in its first year of operations. In January, it issued 70,000 shares of $5 par value common stock for $5 per share, raising $350,000. In July, it issued 40,000 shares of no-par common stock with a stated value of $1 per share for $7 per share, raising $280,000. Jake Corporation issued 1,000 shares of stock under various assumptions about par value and consideration received. Alexia Corporation issued various securities over its first year, including preferred stock, common stock with stated value, and common stock without par or stated value for cash, assets, and services.

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    Benji Corporation issued common stock over two transactions in its first year of operations. In January, it issued 70,000 shares of $5 par value common stock for $5 per share, raising $350,000. In July, it issued 40,000 shares of no-par common stock with a stated value of $1 per share for $7 per share, raising $280,000. Jake Corporation issued 1,000 shares of stock under various assumptions about par value and consideration received. Alexia Corporation issued various securities over its first year, including preferred stock, common stock with stated value, and common stock without par or stated value for cash, assets, and services.

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    © All Rights Reserved
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    105 views5 pages

    Corp Accounting - Prac Problems

    Uploaded by

    Figie Ku
    Benji Corporation issued common stock over two transactions in its first year of operations. In January, it issued 70,000 shares of $5 par value common stock for $5 per share, raising $350,000. In July, it issued 40,000 shares of no-par common stock with a stated value of $1 per share for $7 per share, raising $280,000. Jake Corporation issued 1,000 shares of stock under various assumptions about par value and consideration received. Alexia Corporation issued various securities over its first year, including preferred stock, common stock with stated value, and common stock without par or stated value for cash, assets, and services.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 5

    During its first year of operations, Benji Corporation had the following transactions

    pertaining to its common stock.


    Jan. 10 Issued 70,000 shares for cash at $5 per share.
    July 1 Issued 40,000 shares for cash at $7 per share.
    (a) Journalize the transactions, assuming that the common stock has a par value of $5 per share.
    (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share.

    a. Jan-10 Cash 350000


    Share Capital- Common 350000

    Jul-01 Cash 280000


    Share Capital- Common 200000
    Share Premium- Common 80000

    b. Jan-10 Cash 350000


    Share Capital- Common 70000
    Share Premium- Common 280000

    Jul-01 Cash 280000


    Share Capital- Common 40000
    Share Premium- Common 240000

    Jake Corporation issued 1,000 shares of stock.


    Prepare the entry for the issuance under the following assumptions.
    (a) The stock had a par value of $5 per share and was issued for a total of $52,000.
    (b) The stock had a stated value of $5 per share and was issued for a total of $52,000.
    (c) The stock had no par or stated value and was issued for a total of $52,000.
    (d) The stock had a par value of $5 per share and was issued to attorneys for services during
    incorporation valued at $52,000.
    (e) The stock had a par value of $5 per share and was issued for land worth $52,000.

    a. Cash 52000
    Share Capital- Common 5000
    Share Premium- Common 47000

    b. Cash 52000
    Share Capital- Common 5000
    Share Premium- Common 47000
    c. Cash 52000
    Share Capital- Common 52000

    d. Organizational Costs 52000


    Share Capital- Common 5000
    Share Premium- Common 47000

    e. Land 52000
    Share Capital- Common 5000
    Share Premium- Common 47000

    Alexia Corporation was organized on January 1, 2012. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock,
    shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first
    Jan. 10 Issued 80,000 shares of common stock for cash at $4 per share.
    Mar. 1 Issued 5,000 shares of preferred stock for cash at $105 per share.
    Apr. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $90,000. The fair value of the land wa
    May 1 Issued 80,000 shares of common stock for cash at $4.50 per share.
    Aug. 1 Issued 10,000 shares of common stock to attorneys in payment of their bill of $30,000 for services provided in helping t
    organize.
    Sept. 1 Issued 10,000 shares of common stock for cash at $5 per share.
    Nov. 1 Issued 1,000 shares of preferred stock for cash at $109 per share.
    Dec. 1 Issued 400 shares of preferred stock for a patent. The asking price of the patent was $80,000. Market values were prefe
    and patent indeterminable.

    Jan-10 Cash 320000


    Share Capital- Common 160000
    Share Premium- Common 160000

    Mar-01 Cash 525000


    Share Capital- Preferred 500000
    Share Premium- Preferred 25000

    Apr-01 Land 85000


    Share Capital- Common 48000
    Share Premium- Common 37000

    May-01 Cash 360000


    Share Capital- Common 160000
    Share Premium- Common 200000

    Aug-01 Organizational Costs 30000


    Share Capital- Common 20000
    Share Premium- Common 10000

    Sep-01 Cash 50000


    Share Capital- Common 20000
    Share Premium- Common 30000

    Nov-01 Cash 109000


    Share Capital- Preferred 100000
    Share Premium- Preferred 9000

    Dec-01 Intangible Asset 50000


    Share Capital- Preferred 40000
    Share Premium- Preferred 10000
    share.
    0 par value preferred stock, and 500,000
    re completed during the first year.

    The fair value of the land was $85,000.

    ervices provided in helping the company

    00. Market values were preferred stock $125

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