1. Based on the following information, prepare journal entries for Windgate Corp
ID: 2563567 • Letter: 1
Question
1. Based on the following information, prepare journal entries for Windgate Corporation. Mar. 7 Issued 10,000 shares of $5 par common stock for $43,000 cash 16 Issued 6,000 shares of $5 par common stock for $33,000 cash 23 Issued 4,000 shares of $12 par, 7% preferred stock for $53,000 cash. 29 Issued 5,000 shares of $4 par common stock for land with a fair market value of $28,000 Post Ref Date Description Debit Credit 2. The Creative Interiors Corporation has 40,000 shares of $12 par common stock and 12,000 shares of $50 par, 5% preferred stock outstanding. Dividends totaling $156,000 are distributed to common and preferred shareholders combined. Compute the dividends to be distributed to preferred and common stockholders in total and per conditions. (Round to the nearest cent if necessary). share under the following independent The preferred stock is nonparticipating and noncumulative with no dividends distributed last year. The preferred stock is noncumulative and fully participating after the common shareholders have received dividends per share equal to the preferred stock. a. b. c The preferred stock is cumulative and nonparticipating and no dividends were distributed last yearExplanation / Answer
Answer 1:
Particulars Debit Credit Mar-07 Cash 43,000.00 Common stock 43,000.00 (to record the issue of share capital) Mar-16 Cash 33,000.00 Common stock 33,000.00 (to record the issue of share capital) Mar-23 Cash 53,000.00 Common stock 48,000.00 12*4000 Preferred stock 5,000.00 (To record the issue of preferred stock and common stock) Mar-29 Land 28,000.00 Common stock 28,000.00 (To record the issue of shares in exchange of land)Related Questions
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