Q: Bonata Inc. sells 1,400 common shares on a subscription
Bonata Inc. sells 1,400 common shares on a subscription basis at $65 per share on June 1 and accepts a 45% down payment. On December 1, Bonata collects the remaining 55% and issues the shares. Prepare...
See AnswerQ: On March 1, Kramers Inc. sells 1,000 common
On March 1, Kramers Inc. sells 1,000 common shares to its employees at $25 per share and lends the money to the employees to buy the new shares. The employees pay 50% of the price on the transaction d...
See AnswerQ: Platinum Corporation issued 4,000 of its common shares for $
Platinum Corporation issued 4,000 of its common shares for $66,000. The company also incurred $1,700 of costs associated with issuing the shares. Prepare a single combined journal entry to record the...
See AnswerQ: Higgins Inc. has 52,000 common shares outstanding. The
Higgins Inc. has 52,000 common shares outstanding. The shares have an average cost of $21 per share. On July 1, 2017, Higgins reacquired 800 shares at $56 per share and retired them. Assume no contrib...
See AnswerQ: Opsco Corp. provides the following information about its post-retirement
Opsco Corp. provides the following information about its post-retirement health care benefit plan for the year 2017: Current service cost…………………………………………………………………………$ 202,500 Contribution to the plan...
See AnswerQ: Spencer Limited has 50,000 common shares outstanding, with an
Spencer Limited has 50,000 common shares outstanding, with an average issue price per share of $8. On August 1, 2017, the company reacquired and cancelled 600 shares at $40 per share. There was contri...
See AnswerQ: Maple Leaf Foods Inc. is a Canadian company that produces food
Maple Leaf Foods Inc. is a Canadian company that produces food products such as prepared meats, ready-to-cook and ready-to-serve meals, and fresh pork and poultry. While most of Maple Leaf Foods’ busi...
See AnswerQ: Abourawes Services Inc. issued 1,000 $2 convertible preferred
Abourawes Services Inc. issued 1,000 $2 convertible preferred shares at $75 and 5,000 common shares at $25 each in 2016. Each preferred share is convertible into three common shares. On March 15, 2017...
See AnswerQ: Sometimes an entity issues financial instruments that require settlement using its own
Sometimes an entity issues financial instruments that require settlement using its own shares. Examples of these include purchased or written options to buy or sell its own shares, or forward contract...
See AnswerQ: During 2017, Genoa Limited issued retractable preferred shares. The shares
During 2017, Genoa Limited issued retractable preferred shares. The shares may be presented to the company by the holder for redemption after 2020. Explain how these should be presented in the financi...
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