Question B. Bookkeeping Inc. (20 points) October 1t, 2016 Issued 150,000 of comm
ID: 2543454 • Letter: Q
Question
Question B. Bookkeeping Inc. (20 points) October 1t, 2016 Issued 150,000 of common stock at $22 per share, par value of st October 5th, company issued 2000 shares of common stock at $ 23 par value $16 for legal S16. services rendered by attorneys Able&Willing.; October 17, issued 1000 shares of common stock in exchange of land. The par value of stock is $16.The asking price of land is $ 50,000 and FMV of land S 23,000. Question C. Carpet Enterprises Inc. All information pertains to 2016 (30 points) November 15, declared a S1.75 cash dividend on 280,000 shares of common stock outstanding to be paid November 30h November 30h, paid the dividends declared. December Sth, had a 2 for 1 stock split. December 10th, declared a $1.50 cash dividend on common stock outstanding to be paid on December 30 Dec 30th paid the cash dividends declared on December 10h Question D. Dunrite Moving Inc. All information pertains to 2017 (20 points) October 26th, bought 13,000 treasury stock at $ 19 October 29th, sold 3,000 of treasury stock for $21. Nov 12th, sold the balance of treasury stocks for S 15Explanation / Answer
Date Account titles and explanation Debit Credit 2016 Oct 1. Cash (150000*22) 3300000 Common stock (150000*16) 2400000 Additional paid-in capital 900000 (Issue of common stock) Oct 5. Legal expenses (2000*23) 46000 Common stock (2000*16) 32000 Additional paid-in capital 14000 (Issue of common stock for legal services rendered) Oct 17. Land (At FMV) 23000 Common stock (1000*16) 16000 Additional paid-in capital 7000 (Issue of common stock in exchange of land) Nov 15. Retained earnings (280000*1.75) 490000 Dividend payable 490000 (Dividend declared) Nov 30. Dividend payable 490000 Cash 490000 (Dividend paid) Dec 5. No entry (Only there is change in number of shares. No change in value of common stock. Since no entry required) Dec 10. Retained earnings (280000*2*1.5) 840000 Dividend payable 840000 (Dividend declared) Dec 30. Dividend payable 840000 Cash 840000 (Dividend paid) Oct 26. Treasury stock (13000*19) 247000 Cash 247000 (Bought treasury stock) Oct 29. Cash (3000*21) 63000 Treasury stock (3000*19) 57000 Paid-in capital from treasury stock 6000 (Sale of treasury stock) Nov 12. Cash (10000*15) 150000 Paid-in capital from treasury stock 40000 Treasury stock (10000*19) 190000 (Sale of treasury stock)