PREPARE JOURNAL ENTRIES TO RECORD THE ISSUANCE OF 100,000 SHARES OF COMMON STOCK AT $20 PER SHARE FOR EACH OF THE FOLLOWING INDEPENDENT CASES:

04 Jun PREPARE JOURNAL ENTRIES TO RECORD THE ISSUANCE OF 100,000 SHARES OF COMMON STOCK AT $20 PER SHARE FOR EACH OF THE FOLLOWING INDEPENDENT CASES:

Chapter Two and Three Problems

Please complete the following 7 exercises
below in either Excel or a word document (but must be single document). You
must show your work where appropriate (leaving the calculations within Excel
cells is acceptable). Save the document, and submit it in theappropriate week using the Assignment Submission button.

Chapter
2 Exercise 1

1. Issuance of stock

Prepare journal entries to record
the issuance of 100,000 shares of common stock at $20 per share for each of the
following independent cases:

a. Jackson Corporation has common stock with a par value of
$1 per share.

b. Royal Corporation has no-par common with a stated value of
$5 per share.

c. French Corporation has no-par common; no stated value has
been assigned

Chapter
2 Exercise 3

3.
Analysis of stockholders’ equity

Star Corporation issued both common
and preferred stock during 20X6. The stockholders’ equity sections of the
company’s balance sheets at the end of 20X6 and 20X5 follow.

20X6 20X5
Preferred stock, $100 par value, 10% $580,000 $500,000
Common stock, $10 par value 2,350,000 1,750,000
Paid-in capital in excess of par value
Preferred 24,000 —
Common 4,620,000 3,600,000
Retained earnings 8,470,000 6,920,000
Total stockholders’ equity $16,044,000 $12,770,000
a. Compute the number of preferred shares that were issued
during 20X6.

b. Calculate the average issue price of the common stock sold
in 20X6.

c. By what amount did the company’s paid-in capital increase during
20X6?

d. Did Star’s total legal capital increase or decrease during
20X6? By what amount?

Chapter 2 Problem 1

1. Bond computations: Straight-line amortization

Southlake Corporation issued $900,000
of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1
and mature in 10 years. Assume the independent cases that follow.

·
Case A—The bonds are issued at 100.

·
Case B—The bonds are issued at 96.

·
Case C—The bonds are issued at 105.

Southlake uses the straight-line
method of amortization.

Instructions:

Complete the following table:
Case A Case B Case C
Cash inflow on
the issuance date
_______ _______ _______
Total cash outflow through maturity
_______ _______ _______
Total borrowing cost over the life of the bond issue
_______ _______ _______
Interest expense for the year ended December 31, 20X1
_______ _______ _______
Amortization for the year ended December 31, 20X1
_______ _______ _______
Unamortized premium as of December 31, 20X1
_______ _______ _______
Unamortized discount as of December 31, 20X1
_______ _______ _______
Bond carrying value as of December 31, 20X1
_______ _______ _______
Chapter 3 Exercise 1

1. Product costs and period costs

The costs that follow were extracted from the
accounting records of several different manufacturers:

1.
Weekly wages of an equipment maintenance
worker

2.
Marketing costs of a soft drink bottler

3.
Cost of sheet metal in a Honda automobile

4.
Cost of president’s subscription to Fortune
magazine

5.
Monthly operating costs of pollution control
equipment used in a steel mill

6.
Weekly wages of a seamstress employed by a
jeans maker

7.
Cost of compact discs (CDs) for newly recorded
releases of Rush, Billy Joel, and Bryan Adams

a.
Determine which of these costs are product
costs and which are period costs.

b.
For the product costs only, determine those
that are easily traced to the finished product and those that are not.

Chapter 3
Exercise 2

2.
Definitions of manufacturing concepts
Interstate Manufacturing produces brass fasteners and incurred the following
costs for the year just ended:

Materials and supplies used

Brass $75,000

Repair parts 16,000

Machine lubricants 9,000

Wages and salaries Machine operators 128,000

Production supervisors 64,000

Maintenance personnel 41,000

Other factory overhead Variable 35,000

Fixed 46,000

Sales commissions 20,000

Compute:

a. Total direct materials consumed

b. Total direct labor

c. Total prime cost

d. Total
conversion cost

Chapter 3 Exercise 5

5. Scheduleof
cost of goods manufactured, income statement

The
following information was taken from the ledger of Jefferson Industries, Inc.:

Direct labor $85,000 Administrative expenses $59,000
Selling expenses 34,000 Work in. process
Sales 300,000 Jan. 1 29,000
Finished goods Dec. 31 21,000
Jan. 1 115,000 Direct material purchases 88,000
Dec. 31 131,000 Depreciation: factory 18,000
Raw (direct) materials on hand Indirect materials used 10,000
Jan. 1 31,000 Indirect labor 24,000
Dec. 31 40,000 Factory taxes 8,000
Factory utilities 11,000
Prepare the following:

a.
A schedule of cost of goods manufactured for
the year ended December 31.

b.
An income statement for the year ended
December 31.

Chapter
3 Problem 3
3. Manufacturing statements and cost
behavior

Tampa Foundry began operations during the
current year, manufacturing various products for industrial use. One such
product is light-gauge aluminum, which the company sells for $36 per roll. Cost
information for the year just ended follows.

Per Unit Variable Cost Fixed Cost
Direct materials $4.50 $ —
Direct labor 6.5 —
Factory overhead 9 50,000
Selling — 70,000
Administrative — 135,000
Production and sales totaled 20,000 rolls and
17,000 rolls, respectively There is no work in process. Tampa carries its
finished goods inventory at the average unit cost of production.

Instructions:

a.
Determine the cost of the finished goods
inventory of light-gauge aluminum.

b.
Prepare an income statement for the current
year ended December 31

c.
On the basis of the information presented:

1.
Does it appear that the company pays
commissions to its sales staff? Explain.

2.
What is the likely effect on the $4.50 unit
cost of direct materials if next year’s production increases? Why?