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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