Accouting Chapter13

Accouting Chapter13

Req. 1 (15-20 min.) E 13-6
General Journal |
DATE2010 | ACCOUNT TITLES AND EXPLANATIONS | POST. REF. | DEBIT | CREDIT |
Jan. | 4 | Cash | | 120,000 | |
| | Common Shares | | | 120,000 |
| | Issued 5,000 common shares. | | | |
| | | | | |
| 13 | Cash | | 50,000 | |
| | Preferred Shares | | | 50,000 |
| | Issued 500 preferred shares for cash. | | | |
| | | | | |
| 14 | Land | | 120,000 | |
| | Common Shares | | | 120,000 |
| | Issued 4,000 common shares for land. | | | |
| | | | | |
Dec. | 31 | Income Summary | | 150,000 | |
| | Retained Earnings | | | 150,000 |
| | Closed net income to Retained Earnings. | | | |
Req. 2
Mid-way Consulting Inc. |
Shareholders’ Equity |
December 31, 2010 |
Contributed capital: | |
Preferred shares, $4.00, 500,000 shares authorized, 500 shares issued | $  50,000 |
Common shares, 1,000,000 shares authorized, 9,000 shares issued |   240,000 |
Total contributed capital | 290,000 |
Retained earnings |     150,000 |
Total shareholders’ equity | $440,000 |

(15-20 min) E 13-12
Barclay Marketing Ltd. |
Dividend Payment Schedule |
|
| | PREFERRED | COMMON | TOTAL |
Total dividend | | | | $31,000 |
Preferred dividends in arrears for 2009: | | | | |
(50,000   $0.10) | | 5,000 | | |
Total preferred dividends in arrears | | | |   5,000 |
Remainder | | | | 26,000 |
Dividends for 2010: | | | | |
Preferred | | | | |
Total preferred dividends for 2010 | | 5,000 | |   5,000 |
Remainder | | | | 21,000 |
Common | | | $21,000 |   21,000 |
Remainder | |               |               | $         0 |
Totals | | $10,000 | $21,000 | $31,000 |

Decision Problem
Req. 1 (30-45 min.) Decision Problem
General Journal |...