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I want to know how to solve for Aug 15 , as well as Dec 31, with the calculator

ID: 2598401 • Letter: I

Question

I want to know how to solve for Aug 15 , as well as Dec 31, with the calculator explanation

On January 1, 2017, BYD Corporation was incorporated. The corporate charter grants BYD Corp. the right to issue 100,000 shares of $25.00 par value, 5% cumulative and nonparticipating preferred stock, and 2,000,000 shares of $1.00 par value common stock. It then completed these transactions. · Jan 25 Issued 1,600,000 shares of common stock at $25 per share. .Mar1 Issued to Sanchez Corp. 65,000 shares of preferred stock for the following: o Machinery with a fair market value of $650,000 o A factory building with a fair market value of $812,500 o and, land with an appraised value of $975,000 Jul 21 Purchased 192,000 shares of common stock at $18.75 per share. (Use the cost method) . Aug 15 Sold the 144,000 treasury shares at $30.00 per share. Dec 31 Closed the Income Summary account. There was a $33,950,000 net income. Dec 31 Declared a $1.20 per share cash dividend on the common stock and declared the . referred dividend (a) Record the journal entries for the transactions listed above (14 points)

Explanation / Answer

Answer:

the journal entries for the transactions listed above

Date

Description

Debit $

Credit $

25-Jan-17

Cash ( 1,600,000 *25)

40,000,000

Common Stock

1,600,000

Paidin Capital in Excess of Par—Common

38,400,000

1-Mar-17

Equipment

650,000

Buildings

812,500

Land

975,000

Preferred Stock

1,625,000

Paidin Capital in Excess of Par—Preferred

812,500

21-Jul-17

Treasury Stock (192,000*18.75)

3,600,000

Cash (192,000*18.75)

3,600,000

Aug 15,

Cash (144,000*30)

4,320,000

Treasury Stock(144,000*18.75)

2,700,000

Painin Capital Treasury Stock
(144,000*11.25)

1,620,000

31-Dec

Income Summary

33,950,000

Retained Earnings

33,950,000

Dec 31,

Retained Earnings

1,943,650

Dividend Payable

1,943,650

Date

Description

Debit $

Credit $

25-Jan-17

Cash ( 1,600,000 *25)

40,000,000

Common Stock

1,600,000

Paidin Capital in Excess of Par—Common

38,400,000

1-Mar-17

Equipment

650,000

Buildings

812,500

Land

975,000

Preferred Stock

1,625,000

Paidin Capital in Excess of Par—Preferred

812,500

21-Jul-17

Treasury Stock (192,000*18.75)

3,600,000

Cash (192,000*18.75)

3,600,000

Aug 15,

Cash (144,000*30)

4,320,000

Treasury Stock(144,000*18.75)

2,700,000

Painin Capital Treasury Stock
(144,000*11.25)

1,620,000

31-Dec

Income Summary

33,950,000

Retained Earnings

33,950,000

Dec 31,

Retained Earnings

1,943,650

Dividend Payable

1,943,650

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