As of December 31, 2019, Blue Spruce Ltd., a public company, has 52,000 common shares outstanding....

As of December 31, 2019, Blue Spruce Ltd., a public company, has 52,000 common shares outstanding. During 2020, Blue Spruce had the following transactions.

1.		Issued 6,000 common shares at $32 per share, less $5,000 in costs related to the issuance of the shares.
2.		Issued 4,280 common shares for land appraised at $176,360. The closing price for the shares traded on the TSX was $37 per share on the date of issuance.
3.		Purchased and retired 500 of the company’s shares at $31 per share. The repurchased shares have an average issue price per share of $34.

(a)

Prepare the journal entries to record the three transactions listed.

Expert Solution

Ans.

1.

Issued 6,000 common shares at $32 per share, less $5,000 in costs related to the issuance of the shares.


Account Title	Debit	Credit
Cash	$192,000
Additional paid in capital	$5,000
Common stock		$197,000
(Issue of 6,000 shares @32 per share and share issue expenses of 5,000)

2.

Issued 4,280 common shares for land appraised at $176,360. The closing price for the shares traded on the TSX was $37 per share on the date of issuance.

Account Title	Debit	Credit
Land	$173,360
Common Stock		$158,360
Additional Paid In Capital		$15,000
(Issue of 4280 shares @37 per share and share issued for land acquisition)

3.

Purchased and retired 500 of the company’s shares at $31 per share. The repurchased shares have an average issue price per share of $34.

Account Title	Debit	Credit
Common Stock	$17,000
Cash		$15,500
Additional Paid in Capital		$1,500
(Purchased and retirement of 500 shares)

Hope This Helped ! Let Me Know In Case of Any Queries.

ekkarill92 answered 2 years ago

At December 31, 2017, Blue Spruce Corporation had the following shares outstanding: 7% cumulative preferred shares,...

At December 31, 2017, Blue Spruce Corporation had the following shares outstanding: 7% cumulative preferred shares, 107,100 shares outstanding $10,710,000 Common shares, 4,190,000 shares outstanding 20,950,000 During 2017, the corporation’s only share transaction was the issuance of 370,000 common shares on April 1. During 2017, the following also occurred: Income from continuing operations before tax $22,800,000 Discontinued operations (loss before tax) 3,401,000 Preferred dividends declared 749,700 Common dividends declared 2,130,000 Effective tax rate 40% Calculate earnings per share information as...

Celebrity Inc. has the following shares outstanding at December 31, 2019: Common shares, $1,500,000 no par...

Celebrity Inc. has the following shares outstanding at December 31, 2019: Common shares, $1,500,000 no par value, 10,000 shares issued and outstanding, unlimited number authorized. Preferred shares, $200,000, $5.00, no par value, non voting shares, 2,000 shares issued and outstanding. The preferred shares are cumulative and non-participating. Dividends have not been declared for the past two years. Dividends declared are $30,000. What is the total common share dividends?

Accounting: Celebrity Inc. has the following shares outstanding at December 31, 2019: Common shares, $1,500,000 no...

Accounting: Celebrity Inc. has the following shares outstanding at December 31, 2019: Common shares, $1,500,000 no par value, 10,000 shares issued and outstanding, unlimited number authorized. Preferred shares, $200,000, $5.00, no par value, non voting shares, 2,000 shares issued and outstanding. The preferred shares are noncumulative and non-participating. Dividends declared are $47,500. What is the total preferred share dividends? Celebrity Inc. has the following shares outstanding at December 31, 2019: Common shares, $1,500,000 no par value, 10,000 shares issued...

Blue Spruce Company’s trial balance at December 31, 2019, is presented below. All 2019 transactions have...

Blue Spruce Company’s trial balance at December 31, 2019, is presented below. All 2019 transactions have been recorded except for the items described following the trial balance. Debit Credit Cash $26,000 Accounts Receivable 36,500 Notes Receivable 8,900 Interest Receivable –0– Inventory 36,200 Prepaid Insurance 3,780 Land 21,800 Buildings 132,000 Equipment 55,000 Patents 10,300 Allowance for Doubtful Accounts $400 Accumulated Depreciation—Buildings 44,000 Accumulated Depreciation—Equipment 22,000 Accounts Payable 27,100 Salaries and Wages Payable –0– Unearned Rent Revenue 3,300 Notes Payable (due in...

On January 1, Blue Spruce Corp. had 63,300 shares of no-par common stock issued and outstanding....

On January 1, Blue Spruce Corp. had 63,300 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred. Apr. 1 Issued 19,800 additional shares of common stock for $13 per share. June 15 Declared a cash dividend of $1.65 per share to stockholders of record on June 30. July 10 Paid the $1.65 cash dividend. Dec. 1 Issued 8,800 additional shares of common stock for...

Crane Inc., a publicly traded company, had 291,000 common shares outstanding on December 31, 2019. During...

Crane Inc., a publicly traded company, had 291,000 common shares outstanding on December 31, 2019. During 2020, the company issued 6,600 shares on May 1 and retired 15,000 shares on October 31. For 2020, the company reported net income of $294,530 after a loss from discontinued operations of $44,000 (net of tax). Calculate earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2 decimal places, e.g. 15.25.) Earnings per share Income per share before...

Cullumber Corporation had 102,000 common shares outstanding on December 31, 2019. During 2020, the company issued...

Cullumber Corporation had 102,000 common shares outstanding on December 31, 2019. During 2020, the company issued 12,000 shares on March 1, retired 6,800 shares on July 1, issued a 20% stock dividend on October 1, and issued 18,300 shares on December 1. For 2020, the company reported net income of $408,000 after a loss from discontinued operations of $64,000 (net of tax). The company issued a 2-for-1 stock split on February 1, 2021, and the company’s financial statements for the...

Wildhorse Corporation had 118,000 common shares outstanding on December 31, 2019. During 2020, the company issued...

Wildhorse Corporation had 118,000 common shares outstanding on December 31, 2019. During 2020, the company issued 14,000 shares on March 1, retired 6,500 shares on July 1, issued a 20% stock dividend on October 1, and issued 21,300 shares on December 1. For 2020, the company reported net income of $472,000 after a loss from discontinued operations of $67,600 (net of tax). The company issued a 2-for-1 stock split on February 1, 2021, and the company’s financial statements for the...

On December 31, 2019, Sandhill Corporation had 140,000 common shares outstanding. On April 30, 2020, the...

On December 31, 2019, Sandhill Corporation had 140,000 common shares outstanding. On April 30, 2020, the company issued an additional 50,000 common shares for cash. On July 31, 2020, the company repurchased and cancelled 20,000 common shares. During the year ended December 31, 2020, Sandhill earned income before taxes of $40,000,000. Not included in this income was a loss from discontinued operations of $5,000,000 before tax. The company was subject to a 25% income tax rate. Calculate earnings per share(From...

Grimm Company has 2,400,000 shares of common stock outstanding on December 31, 2016. An additional 150,000...

Grimm Company has 2,400,000 shares of common stock outstanding on December 31, 2016. An additional 150,000 shares of common stock were issued on July 1, 2017, and 300,000 more on October 1, 2017. On April 1, 2015, Grimm issued 6,000, $1,000 face value, 8% convertible bonds. Each bond is convertible into 40 shares of common stock. No bonds were converted into common stock in 2017. Net income for 2017 was $25,500,000 and the company’s income tax rate is 40%. What...

Question