Ch 13 corporations

Solve the following questions:

Q1)Wise Company had the following transactions.

1. Issued 5,000 shares of common stock with a stated value of $10 for $130,000.
2. Issued 2,000 shares of $100 par preferred stock at $108 for cash.
Journalize the above transactions.

1- Cash ……………………………..130,000$
CS(5000@10$)............................50,000$
Paid in capital PV-CS…………….80,000$

2- Cash (2000@108)..............................................$216,000
PS (2000@100)...............................................................200,000
Paid in capital PV-PS………………………………………16,000

Q2) James Corporation has the following accounts at December 31: Common Stock, $10 par
7,000 shares issued, $70,000; Paid-in Capital in Excess of Par $10,000; Retained Earnings
$45,000; and Treasury Stock—Common, 500 shares, $10,000.
Prepare the stockholders' equity section of the balance sheet.

Paid in capital:
CS-$10 PV, 7,000 shares issued ………………………………………$70,000
Paid in capital in exc PV-CS…………………………………………….10,000
Total paid in capital ……………………………………………………...80,000

RE…………………………………………………………………………45,000
Less: Treasury stocks . ………………………………………………….(10,000)
Stockholders’ equity …………………………………………………..$115,000
Q3) The following selected transactions pertain to Sinclair Corporation:
Jan. 3 Issued 100,000 shares, $10 par value, common stock for $25 per share.

Feb. 10 Issued 6,000 shares, $10 par value, common stock in exchange for special purpose
equipment. Sinclair Corporation's common stock has been actively traded on the
stock exchange at $30 per share.
Journalize the above transactions

Jan 3 cash(100,000@25)…………………………………2,500,000
CS(100,000@10)…………………………….1,000,000
Paid in capital in exc PV_CS………………..1,500,000

Feb 10 equipment (6,000@ 30)………………………..180,000

CS (6000@ 10)………………………………….60,000
Paid in capital in exc PV-CS…………………..120,000