The writer is very fast, professional and responded to the review request fast also. Thank you.
Book/movie review
22/08/2022
After reading the information on stockholder’s equity in Chapter 18 from your Intermediate Accounting text, use a Word or an Excel document to address the following problems:
P 18–1
Various stock transactions; correction of journal entries
• LO18–4
IFRS
Part A
During its first year of operations, the McCollum Corporation entered into the following transactions relating to shareholders’ equity. The corporation was authorized to issue 100 million common shares, $1 par per share.
Required:
Prepare the appropriate journal entries to record each transaction.
Jan. 9
Issued 40 million common shares for $20 per share.
Mar. 11
Issued 5,000 shares in exchange for custom-made equipment. McCollum’s shares have traded recently on the stock exchange at $20 per share.
Part B
A new staff accountant for the McCollum Corporation recorded the following journal entries during the second year of operations. McCollum retires shares that it reacquires (restores their status to that of authorized but unissued shares).
Required:
Prepare the journal entries that should have been recorded for each of the transactions.
P 18–10
Transactions affecting retained earnings
• LO18–4 through LO18–8
Indicate by letter whether each of the transactions listed below increases (I), decreases (D), or has no effect (N) on retained earnings. Assume the shareholders’ equity of the transacting company includes only common stock, paid-in capital—excess of par, and retained earnings at the time of each transaction. (Some transactions have two possible answers. Indicate both.)
Transactions
· N 1. Sale of common stock
· 2. Purchase of treasury stock at a cost less than the original issue price
· 3. Purchase of treasury stock at a cost greater than the original issue price
· 4. Declaration of a property dividend
· 5. Sale of treasury stock for more than cost
· 6. Sale of treasury stock for less than cost
· 7. Net income for the year
· 8. Declaration of a cash dividend
· 9. Payment of a previously declared cash dividend
· 10. Issuance of convertible bonds for cash
· 11. Declaration and distribution of a 5% stock dividend
· 12. Retirement of common stock at a cost less than the original issue price
· 13. Retirement of common stock at a cost greater than the original issue price
· 14. A stock split effected in the form of a stock dividend
· 15. A stock split in which the par value per share is reduced (not effected in the form of a stock dividend)
· 16. A net loss for the year
The writer is very fast, professional and responded to the review request fast also. Thank you.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more