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3 Bumps

I need help with my accounting

Sapp Company is authorized to issue 20,000 shares of no-par, $5 stated-value common stock and 5,000 shares of 9%, 100 par preferred stock. It enters into the following transaction:

1. Accepts a subscription contract to 7,000 shares of common stock at $42 per share and receives a 30% down payment

2. Collects the remaining balance of the subscription contract and issues the common stock

3. Acquires a building by paying $23,00 cash and issuing 2,,000 shares of common stock and 600 shares of preferred stock. Common stock is currently selling at $46 per share; preffed stock has no current market value. The building is appraised at $180,000

4. Sells 1,000 shares of common stock at $45 per share

5. Sells 900 shares of preferred stock at $112 per share

6. Declares a two-for-one stock split on the common stock, reducing the stated value to $2.50 per share

Answer Question

Asked by ckathyann at 9:14 PM on Sep. 22, 2010 in Money & Work

Level 2 (5 Credits)
Answers (7)
  • I don't have an answer for you but I gave you a bump to try to get your question answered!



    Answer by FeelinYummy at 9:36 PM on Sep. 22, 2010

  • What exactly is the question?? I understand the data part. Do you need to record the journal entries for each part??

    Answer by WyndenSkie at 10:08 PM on Sep. 22, 2010

  • I do have a journal that they have to be put in. I can email it to you.... I really need help with this to finish my schooling. Thanks for your help.

    Comment by ckathyann (original poster) at 11:07 PM on Sep. 22, 2010

  • ewww, I hated Accounting courses! I will be no good help. BEST of luck, though

    Answer by NicolesMommy at 1:33 AM on Sep. 23, 2010

  • Ckathyann,

    Feel free to email me on this. It may take a while. Sent you a note. Start with a T-accounting approach to the first section.

    1. Apply the subscription receivable (Think just like a partial payment to AR)
    DR Sub Rec, CR Shares Sub
    Apply the cash received
    DR Cash, CR Sub Rec

    2. Apply the balance and issue shares
    DR Cash, CR Sub Rec
    DR Shares Sub, CR Capital


    Answer by WyndenSkie at 10:51 AM on Sep. 23, 2010

  • You might want to see if you can find someone who is an accountant to help you. I'm sorry, but I'm clueless.

    Answer by HotMama330 at 12:22 PM on Sep. 23, 2010

  • Re-read your text book

    Answer by rkoloms at 9:44 PM on Sep. 24, 2010

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