Question

In: Accounting

The following transactions occurred at Pharaoh Inc. during its first year of operation: a. Issued 100,000...

The following transactions occurred at Pharaoh Inc. during its first year of operation:
a. Issued 100,000 common shares at $5 each; 1,000,000 no par shares are authorized.
b. Issued 10,000 common shares for a building and land. The building was appraised for $20,000, but the value of the land is undeterminable. The shares are selling for $10 on the open market.
c. Purchased 1,000 of its own common shares on the open market for $16 per share.
d. Declared a dividend of $0.10 per share on outstanding common stock. The dividend is to be paid after the end of the first year of operations. Market value of the shares is $26.
e. Reported $180,000 of income for the year.
Required
1. Prepare the journal entries required to record the transactions on the books of Pharaoh Inc.
2. Indicate each transaction’s effect on the assets, liabilities, and owners’ equity of Pharaoh Inc.
3. Prepare the Shareholders’ Equity section of the Statement of Financial Position.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

The following transactions occurred in the first month of the business operation: No Transactions Effect on...
The following transactions occurred in the first month of the business operation: No Transactions Effect on Assets Liabilities Equity Example Commission received, RM200 Increase Increase 1 Introduced capital of RM50,000 cash into the business. 2 Withdrew RM500 cash to pay for his mother’s medical bills. 3 Bought a van on credit RM70,000 from Proton. 4 Customer paid the business RM6,300. 5 The business pay supplier RM2,700 through online banking. 6 Repaid a RM780 loan owed to Robert by cash. 7...
Lexington Company engaged in the following transactions during Year 1, its first year in operation:
Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions)Acquired $6,000 cash from issuing common stock.Borrowed $4,400 from a bank.Earned $6,200 of revenues.Incurred $4,800 in expenses.Paid dividends of $800.Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions)Acquired an additional $1,000 cash from the issue of common stock.Repaid $2,600 of its debt to the bank.Earned revenues, $9,000.Incurred expenses of $5,500.Paid dividends of $1,280....
the following transactions occurred during the first year of operations for dave's tvs,inc,. a retail company...
the following transactions occurred during the first year of operations for dave's tvs,inc,. a retail company thats uses a perpetual inventory system: (prepare journal entries in summary form for the year ) that were made to record these transactions and a partial income statement through gross profit . a) purchases appliances for $400,000 b) sold appliance that cost $360,000 for $470,000 c) collected $345,000 on account d) paid $285,000 e) a physical count of inventory at the end of the...
The following transactions apply to Hooper Co. for 2018, its first year of operations: Issued $100,000...
The following transactions apply to Hooper Co. for 2018, its first year of operations: Issued $100,000 of common stock for cash. Provided $98,000 of services on account. Collected $84,000 cash from accounts receivable. Loaned $13,000 to Mosby Co. on November 30, 2018. The note had a one-year term to maturity and a 8 percent interest rate. Paid $36,000 of salaries expense for the year. Paid a $3,500 dividend to the stockholders. Recorded the accrued interest on December 31, 2018 (see...
Following are the transactions and adjustments that occurred during the first year of operations at Kissick...
Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. Issued 192,000 shares of $4-par-value common stock for $768,000 in cash. Borrowed $530,000 from Oglesby National Bank and signed a 11% note due in three years. Incurred and paid $380,000 in salaries for the year. Purchased $640,000 of merchandise inventory on account during the year. Sold inventory costing $590,000 for a total of $920,000, all on credit. Paid rent of $110,000 on the...
Following are the transactions and adjustments that occurred during the first year of operations at Kissick...
Following are the transactions and adjustments that occurred during the first year of operations at Kissick Co. a. Issued 192,000 shares of $5-par-value common stock for $960,000 in cash. b. Borrowed $530,000 from Oglesby National Bank and signed a 11% note due in three years. c. Incurred and paid $390,000 in salaries for the year. d. Purchased $720,000 of merchandise inventory on account during the year. e. Sold inventory costing $590,000 for a total of $900,000, all on credit. f....
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued...
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $16,000 of common stock for cash. Recognized $64,000 of service revenue earned on account. Collected $57,200 from accounts receivable. Paid operating expenses of $36,200. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2:...
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued...
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $14,000 of common stock for cash. Recognized $214,000 of service revenue earned on account. Collected $166,400 from accounts receivable. Paid $129,000 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for...
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued...
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $17,500 of common stock for cash. Recognized $62,500 of service revenue earned on account. Collected $56,000 from accounts receivable. Paid operating expenses of $36,800. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account The following transactions apply to Jova for Year 2...
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued...
The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $15,500 of common stock for cash. Recognized $64,500 of service revenue earned on account. Collected $57,600 from accounts receivable. Paid operating expenses of $36,000. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2:...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT