Accounting - please look

Mustang4119 · Jun 16, 2006

A corporation, which has 15,000 shares of common stock outstanding, declared a 3 for 1 stock split.

(a) What will be the number of shares outstanding after the split? Its 45,000

(b) If the common stock had a market price of $240 per share before the stock split, what would be an approximate market price per share after the split? Its $80.

(c) Journalize the entry to record the stock split.

I dont know the journal entry names and what do I journalize for debt and credit. Thats where im stuck part C. I know 1 of the entries is called 3 for 1 stock split. help please

Saleen311 · Jun 16, 2006

since the $$$ stays the same would you even need to make a journal entry??

Mustang4119 · Jun 16, 2006

Saleen311 said:
since the $$$ stays the same would you even need to make a journal entry??

I dont know thats why Im asking. I dont even know what to put to journalize it. Obviously debt/credit have to equal the same.

Skud · Jun 16, 2006

I would think that all information would stay the same, but you would still have to record the fact that you now have 45,000 shares instead of 15,000..

My accounting is a little rusty..

Riley

Mustang4119 · Jun 16, 2006

Skud said:
I would think that all information would stay the same, but you would still have to record the fact that you now have 45,000 shares instead of 15,000..

My accounting is a little rusty..

Riley

Thats what I was thinking, so 45,000 would be on debt and credit side.

Mustang4119 · Jun 16, 2006

On February 1 of the current year, Pace, Inc. issued 500 shares of $2 par common stock to an attorney in return for preparing and filing the articles of Incorporation. The value of the services is 7,500. Journalize this transaction.

A company has 10,000 shares of $10 par common stock outstanding.

Purchased equipment for 75,000, paying 25,000 in cash and issuing 4,000 shares of common stock for the equipment. Journalize entry.

Issued 1,400 shares of common stock in exchange for equipment with a fair market price of $21,000. Journalize entry.

Nater · Jun 16, 2006

You want us to do your homework for you?

Mustang4119 · Jun 16, 2006

Nater said:
You want us to do your homework for you?

There just some easy problems, well not for me.

squares98 · Jun 16, 2006

This is an easy problem,

JE

2/1 Equiptment 75,0000
>>>>>> >>> Cash 25,000
>>>>>>> >>>Common Stock 40,000
(4,000 shares X$10)

2/1 Cash 21,000
You can do the rest

>>>formatting sucks because of the website>>>

Mustang4119 · Jun 16, 2006

squares98 said:
This is an easy problem,

JE

2/1 Equiptment 75,0000
>>>>>> >>> Cash 25,000
>>>>>>> >>>Common Stock 40,000
(4,000 shares X$10)

2/1 Cash 21,000
You can do the rest

>>>formatting sucks because of the website>>>

That makes no sense, it doesnt even add up evenly for debt and credit sides.

squares98 · Jun 16, 2006

some of my clicking and pasting got left out

Mustang4119 · Jun 16, 2006

squares98 said:
some of my clicking and pasting got left out

can you finish it or pm me please.

squares98 · Jun 16, 2006

it's not gain or loss on disposal, but the other one,(forget the term). Its probably on the same chapter discussing gaining or losing during transactions . If i had a book I could remember those steps. Had last final today, brain dead I am.

Mustang4119 · Jun 16, 2006

squares98 said:
it's not gain or loss on disposal, but the other one,(forget the term). Its probably on the same chapter discussing gaining or losing during transactions . If i had a book I could remember those steps. Had last final today, brain dead I am.

paid in capital in excess of par value? So theres 10,000 left. Whats the whole entry for debt side and credit.

squares98 · Jun 16, 2006

no thats not it Hold on a sec

squares98 · Jun 16, 2006

Feb 1

A/P 7,500
(lawyer fees)
>>>>>>>>>C/Stock 1000
>>>>>>A/P 6500

Feb1
Equiptment 75,000

>>>Cash 25,000
>>>>C/Stock 40,000
>>>>A/P 10,000
Equiptment 21000
>>>C/Stock 14000
>>>>A/P 7000

I was thinking about somthing further along earlier

Mustang4119 · Jun 16, 2006

why does the 2nd problem of the entries not seem right. There are too many things. We are not even writing account payable in chap 12. Its all with the common stock, paid in capital and so on. Why are there 2 equipment payments?

Mustang4119 · Jun 16, 2006

squares98 said:
Feb 1

A/P 7,500
(lawyer fees)
>>>>>>>>>C/Stock 1000
>>>>>>A/P 6500

Feb1
Equiptment 75,000

>>>Cash 25,000
>>>>C/Stock 40,000
>>>>A/P 10,000
Equiptment 21000
>>>C/Stock 14000
>>>>A/P 7000

I was thinking about somthing further along earlier

Why would you debt cash if your paying, your not receiving money.

01Steeda · Jun 16, 2006

Nater said:
You want us to do your homework for you?

Ernad · Jun 16, 2006

how come you don't ask your instructor to help you?

Accounting - please look

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