Accounting unit10 | Accounting homework help

  

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:

Don't use plagiarized sources. Get Your Custom Essay on
Accounting unit10 | Accounting homework help
From as low as $8/Page
Order Essay
  • P 18-1, “Various Stock      Transactions; Correction of Journal Entries,” page 1078.
    • This problem tests your       knowledge on the issuance of capital stock and correction of journal       entries for stockholders’ equity.
  • P 18-10, “Transactions      Affecting Retained Earnings,” page 1082.
    • This problem tests your       knowledge of transactions affecting retained earnings.

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

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

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.

Money-back guarantee

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 more

Zero-plagiarism guarantee

Each 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 more

Free-revision policy

Thanks 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 more

Privacy policy

Your 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 more

Fair-cooperation guarantee

By 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
Confirm Eligibility