E16-14 Various Journal Entries Sapp Company is authorized to issue 20,000 shares of no-par, $5 stated-value
E16-14 Various Journal Entries 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  transactions:
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 $23,000 cash and issuing 2,000 shares of common stock and 600 shares of preferred stock. Common stock is currently selling at $46 per share; preferred 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.
Required
Prepare journal entries to record the preceding transactions.
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Posted 08 Oct 2017 09:10 PM
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file 1507496575-E16-14 Various Journal Entries Sapp Company.docx preview (384 words )
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