Find the required solution sheet attached herewith.
Brief Exercise 13-04
On June 1, Martinez Inc. issues 3,000 shares of no-par common stock at a cash price of $5
per share.
Journalize the issuance of the shares assuming the stock has a stated value of $2 per share.
(Credit account titles are automatically indented when amount is entered. Do not indent
manually.)
Date Account Titles and Explanation Debit
Credit
June 1
Cash
15000
Common Stock
6000
Paid-in Capital
9000
Brief Exercise 13-06
Flounder Inc. issues 4,350 shares of $115 par value preferred stock for cash at $135 per
share.
Journalize the issuance of the preferred stock. (Credit account titles are automatically
indented when amount is entered. Do not indent manually.)
Account Titles and Explanation Debit
Cash
Credit
587250
Preferred stoc
500250
Paid-in Capital
87000
Brief Exercise 13-08
Blue Spruce Corporation has the following accounts at December 31: Common
Stock, $8 par, 5,550 shares issued, $44,400; Paid-in Capital in Excess of Par—
Common Stock $33,100; Retained Earnings $46,000; and Treasury Stock, 500
shares, $10,500.
Prepare the stockholders’ equity section of the balance sheet. (Enter the account
name only and do not provide the descriptive information provided in the
question.)
BLUE SPRUCE CORPORATION
Balance Sheet (Partial)
December 31
Stockholders’ equity
Paid-in Capital
Capital Stock
Common Stock
44,400
Additional Paid-in Stock
Paid-in Capital in Excess of Par—Common Stock
33,100
Total Paid in Capital
77,500
Retained Earnings
46,000
Total paid in Capital and Retained Earnings
123,500
Less Treasury Stock
10,500
Total Stockholders’ equity
113,000
Exercise 13-02
Andrea has prepared the following list of statements about corporations.
Identify each statement as true or false.
1.
2.
3.
4.
Corporation management is both an advantage and a disadvantage of a
corporation compared to a proprietorship or a partnership.
Limited liability of stockholders, government regulations, and...
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