King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 7 percent, $25 par value, authorized 49,000 shares. Common shares: no par value, authorized 179,500 shares. During year 1, the following transactions occurred in the order given: a. Sold and issued 24,500 common shares to each of the three organizers. Collected $10 cash per share from two of the organizers and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the shares immediately. Assume that 35 percent of the non-cash payment received applies to the building. b. Sold and issued 6,900 preferred shares at $25 per share. Collected the cash and issued the shares immediately. c. Sold and issued 2,900 preferred shares at $25 and 2,900 common shares at $13 per share. Collected the cash and issued the shares immediately. d. The operating results at the end of year 11 were as follows: Revenues Expenses, including income taxes $375,000 217,500

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required:
1. Prepare the journal entries to record each of these transactions and to close the accounts. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
View transaction list View journal entry worksheet
No
1
2
3
4
5
Transaction
a.
b.
C.
d-1.
d-2.
Cash
Building
Land
Common shares
Cash
Preferred shares
Cash
Common shares
Preferred shares
Revenues
Expenses
Income summary
Income summary
Retained earnings
General Journal
Debit
Credit
X
Transcribed Image Text:Required: 1. Prepare the journal entries to record each of these transactions and to close the accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No 1 2 3 4 5 Transaction a. b. C. d-1. d-2. Cash Building Land Common shares Cash Preferred shares Cash Common shares Preferred shares Revenues Expenses Income summary Income summary Retained earnings General Journal Debit Credit X
King Corporation began operations in January, year 1. The charter authorized the following share capital:
Preferred shares: 7 percent, $25 par value, authorized 49,000 shares.
Common shares: no par value, authorized 179,500 shares.
During year 1, the following transactions occurred in the order given:
a. Sold and issued 24,500 common shares to each of the three organizers. Collected $10 cash per share from two of the organizers,
and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the shares
immediately. Assume that 35 percent of the non-cash payment received applies to the building.
b. Sold and issued 6,900 preferred shares at $25 per share. Collected the cash and issued the shares immediately.
c. Sold and issued 2,900 preferred shares at $25 and 2,900 common shares at $13 per share. Collected the cash and issued the
shares immediately.
d. The operating results at the end of year 11 were as follows:
Revenues
Expenses, including income taxes
$375,000
217,500
Transcribed Image Text:King Corporation began operations in January, year 1. The charter authorized the following share capital: Preferred shares: 7 percent, $25 par value, authorized 49,000 shares. Common shares: no par value, authorized 179,500 shares. During year 1, the following transactions occurred in the order given: a. Sold and issued 24,500 common shares to each of the three organizers. Collected $10 cash per share from two of the organizers, and received a plot of land with a small building on it in full payment for the shares of the third organizer and issued the shares immediately. Assume that 35 percent of the non-cash payment received applies to the building. b. Sold and issued 6,900 preferred shares at $25 per share. Collected the cash and issued the shares immediately. c. Sold and issued 2,900 preferred shares at $25 and 2,900 common shares at $13 per share. Collected the cash and issued the shares immediately. d. The operating results at the end of year 11 were as follows: Revenues Expenses, including income taxes $375,000 217,500
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