EXERCISES
Ex. 282
Jan.3Issued 150,000 ordinary shares, €10 par value, for €22 per share.
Feb.10Issued 8,000 ordinary shares, €10 par value, in exchange for special purpose equipment. Nesley Corporation's ordinary shares has been actively traded on the share exchange at €25 per share.
Instructions
Journalize the transactions.
(To record issuance of shares for equipment)
Ex. 283
The corporate charter of Gregory Corporation allows the issuance of a maximum of 2,500,000 ordinary shares with a $1 par value. During its first three years of operation, Gregory issued 1,500,000 shares at $15 per share. It later acquired 30,000 treasury shares for $25 per share.
Instructions
Based on the above information, answer the following questions:
(a)How many shares were authorized?
(b)How many shares were issued?
(c)How many shares are outstanding?
(d)What is the balance of the Share Capital–Ordinary account?
(e)What is the balance of the Treasury Shares account?
Ex. 284
Horner Corporation is authorized to issue 1,000,000 ordinary shares with a $5 par value. During 2014, its first year of operation, the company has the following share transactions.
Jan.1Issued 500,000 ordinary shares at $7 per share.
Jan. 15Paid the government $2,000 for incorporation fees.
Jan.30Attorneys for the company accepted 500 ordinary shares as payment for legal services rendered in helping the company incorporate. The legal services are estimated to have a value of $5,000.
July2Issued 100,000 shares for land. The land had an asking price of $900,000. The stock is currently selling on a national exchange at $8 per share.
Sept.5Purchased 15,000 shares for the treasury at $10 per share.
Dec.6Sold 11,000 treasury shares at $11 per share.
Instructions
Journalize the transactions for Horner Corporation.