Acc 206 Week 2 Assignment Chapter Two and Three Problems

ACC 206 Week 2 Assignment Chapter Two and Three Problems

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ACC 206 Week 2 Assignment Chapter Two and Three Problems

Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button.

Chapter 2 Exercise 1

1. Issuance of stock

Prepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases:

a. Jackson Corporation has common stock with a par value of $1 per share.

b. Royal Corporation has no-par common with a stated value of $5 per share.

c. French Corporation has no-par common; no stated value has been assigned

Chapter 2 Exercise 3

3. Analysis of stockholders’ equity

Star Corporation issued both common and preferred stock during 20X6. The stockholders’ equity sections of the company’s balance sheets at the end of 20X6 and 20X5 follow.

20X6

20X5

Preferred stock, $100 par value, 10%

$580,000

$500,000

Common stock, $10 par value

2,350,000

1,750,000

Paid-in capital in excess of par value

Preferred

24,000

—

Common

4,620,000

3,600,000

Retained earnings

8,470,000

6,920,000

Total stockholders’ equity

$16,044,000

$12,770,000

a. Compute the number of preferred shares that were issued during 20X6.

b. Calculate the average issue price of the common stock sold in 20X6.

c. By what amount did the company’s paid-in capital increase during 20X6?

d. Did Star’s total legal capital increase or decrease during 20X6? By what amount?

Chapter 2...